Historic Derbyshire castle and country park estate could be sold with £35 million regeneration plan scrapped

Derbyshire County Council has been working on a master plan to overhaul the 321-acre Elvaston Castle and Country Park Estate, including a new car park and access road and the renovation of its many listed historic buildings.

However, this master plan is “no longer financially viable” after six years of planning, including a stalled planning application for the first phase and thousands of pounds of public money already spent on assessments.

It had budgeted for the first phase of the scheme to cost £35 million but this has now increased to more than £50 million, it writes, alongside the authority’s overall budget black hole of £40 million, which is leading to a large array of cutbacks, including care home closures.

The council, which has previously marketed the Elvaston site for sale, has now said “a sale would be considered in the future as part of the long-term options for the estate if an opportunity arises”.

It has managed the site as a public country park estate for more than 50 years but this could come to an end due to the authority’s own financial pressures, with many “difficult decisions” being made.

A heavily stripped-back plan for the country park with Gothic revival castle, lake, woodlands and formal gardens with topiary, is now being developed for the site and the master plan is set to be scrapped.

Campaign groups have consistently opposed the master plan for being destructive to the environment and harmful to the historic site, along with being too expensive, with thousands of people signing petitions opposing the regeneration scheme.

It writes that this decision is linked to “financial challenges affecting many local authorities, with the county council facing a budget black hole of £40 million”.

Council papers to be discussed next week detail: “The impact of inflation and the complex nature of the project have seen the potential costs of the master plan spiral, while grants that might have helped fund its proposals are no longer available.”

In August, the council confirmed to the Local Democracy Reporting Service that “significant” financial challenges were leading to a full review of the castle master plan, which was also to include renovation of the historic building itself – which has been closed for years.

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The first phase of the master plan involved a new “discreet” 1.5km access drive from a roundabout to be built off the B5010 close to Thulston Roundabout, leading to a new 600-space car park – previously priced at £5 million.

It also involved the regeneration and reuse of historic buildings on-site as a range of shops including an ice cream parlour, blacksmiths, education centre, tearoom, and plant and flower sales.

A new 150-cover cafe and adventure playground was also to be built as part of this first phase, along with “enhanced landscaping” throughout the site.

The plan aimed to create 176 new full-time jobs with 194 in total across the site when including existing jobs in the figure.

A new “affordable” list of improvements for the site is now set to include upgrading the equestrian and showground facilities, modernising the castle courtyard and increasing marketing of the site, “giving a much quicker return on investment”.

The Elvaston master plan falls within the council schemes which have not yet been started and do not yet have contractual obligations, and it has now been dubbed “non-essential” by the authority following a review of all ongoing and future projects, announced last September, along with a hiring freeze and pause on all non-essential spending.

At an updated cost of £50 million the master plan has been dubbed “unaffordable and not financially viable in the immediate term, having full regard to the council’s financial constraints”.

The council said it was set to rely on sourcing £13.3 million from outside parties in order to fund the master plan and this had been deemed “reasonable and realistic” but says this grant funding is no longer available and the authority “can no longer afford” to pick up the shortfall.

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It also writes: “Whilst operating country parks is a service that the council wishes to provide, it recognises that management of heritage assets is not a core activity and potentially could be delivered more effectively by a third-party operator, managing agent or under different ownership. 

“The council will therefore review on an ongoing basis the options for transfer of ownership, or partnership, with a suitable third party.

“Investigation of the long-term options available for the disposal of the estate has been explored in some depth with real estate experts. 

“These discussions have concluded that whilst the estate has significant potential, the options to commercially develop it are limited in the current economic climate. 

“To reach the position where the estate could be pro-actively marketed with a chance of success would require significant preparatory activity and use of potentially both revenue and capital funds, which the council is not currently able to set aside for this task. 

“However, if a suitable third party should come forward with compelling proposals the council would actively consider them.”

Should the council choose to “dispose” of the estate, community groups would have six months to bid for the site, due to it being listed as an “asset of community value” through South Derbyshire District Council.

It says the plan to scrap the master plan represents a “pragmatic response to a set of very complex and challenging circumstances” while new interim, cheaper measures would “afford some immediate protection to this valuable heritage asset, whilst reflecting the council’s financial pressures”.

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The council has been spending £50,000 a year on the master plan and the annual maintenance for the site is £356,000, while it has been giving £18,000 a year to the Elvaston Castle and Gardens Trust to manage the day-to-day affairs of the estate for four years (£72,000) which is to be increased to £28,000 for two years, it writes.

Councillor Tony King, the county council’s cabinet member for clean growth and regeneration, said: “Elvaston Castle and Gardens is a much-loved heritage destination which continues to be popular with thousands of people every year. 

“However, it is becoming increasingly expensive to run and cannot generate enough income in its current form to cover its costs.

“Since we began developing the master plan for Elvaston more than six years ago, the financial climate has changed drastically. Costs have risen massively and any external financial support is very limited.

“If we leave Elvaston in its current condition that, too, will come at an increasingly unaffordable cost. 

“It therefore makes sense to look at the potential for a new approach that addresses immediate challenges while also examining all options for a viable long-term future.”