Property and Power is our new investigation into the murky world of commercial property development.
We kick-off with an extraordinary court case in which the Isle Of Man Government is being sued for over £50 million for allegedly mishandling a bid which has left the capital city Douglas with a ‘bombsite’ bus station.
Where we live is defined by the buildings around us.
But the construction of the apartments we rent or own, the offices we work in, and the shops we rely on are little talked about.
How the cinemas and gyms we hang-out in are built and how the restaurants we dine-in are financed, is a mystery to most people
That’s because commercial property development is complex, long-winded and very expensive.
But when the building process goes wrong, the effects on the community are far-reaching.
Residents miss out on the facilities – often over generations – and the local economy stagnates.
Jobs go elsewhere, transport slows down and space gets scarcer and pricier.
Today, Expose News begins a new series in which we try to unravel this mind-boggling world.
In Episode One, we begin with an extraordinary case in the Isle of Man, a place often neglected place in our media.
In 2016, a company called Sondica were front-runners in a bid to the to build a state-of-the-art retail and residential scheme.
But another company won the bid, called Kane Ltd.
Seven years later nothing.
Now the Isle of Man government are in the firing line.
Instead of a 4* hotel with a Michelin-starred restaurant, a new bus terminal and a contemporary wintergarden atrium, the residents of the capital city Douglas have been left with a car-park, described by some as as ‘bomb site.’
Now Sondica have launched a court case claiming damages in excess of £50 million.
The winning bidders Kane Ltd., aren’t being blamed – but the politicians who awarded the contract are.
Locals argue that the case is emblematic of a government that is out-of-touch and incompetent.
Expose News went to the Isle of Man to investigate these compelling court cases.
The case is set against a backdrop of reports of infighting and multiple firings within Department of Infrastructure, the body which handled the tendering process.
PAUL MOULTON: ‘So we have the Department for Infrastructure, which is a very wieldy part of government. There are many things they do. Major work.’
The turmoil has put the spotlight on the Isle of Man government, which has already come under fire in the national press.
A delayed project to reform the airport, and a new ferry terminal which blew the budget have raised concerns.
Locally, a revamp of a much-used Promenade sparked controversy because of defects
PAUL MOULTON: ‘For instance, the Promenade, Douglas Promenade was redone. It went horribly overbudget, it was delayed and is still about 98% done, years later.’
But the focus has now shifted to the centre of Douglas where the Lord Street car park is referred to as a ‘bomb site’ by passers-by.
PAUL MOULTON: ‘So forever and ever, there was going to be this new development down in Lord Street.’
All the more depressing, according to residents, when they consider the designs they should have got in its place: a international four star hotel, a Picturehouse Cinema and a large enclosed wintergaRden public space
PAUL MOULTON: ‘This is the casinos and hotels and all sorts. And the first attempt there’s a sudden so outcry because they were going to give them a 99 year lease or something. And then also the company were not interested and that bit the dust this is where the bus station was and we lost our bus station. We didn’t have a bus station. We have an interchange which is just nothing. So this is all levelled, ready for all that work. And Lord Street was primed up for a major development. And basically over the years it’s come and it’s gone. I’ve done numerous bits about it.’
The court case between Sondica and the Department of Infrastructure over its handling of the development has been bubbling in the courts over the past few years.
SAM TURTON: ‘It was announced they were going to sell it and it was going to be used for development. The company, which got that bid was called Kane Ltd and there was a rival bid from a company called Sondica.’
‘And they are claiming the Department of Infrastructure basically mishandled that bid process. They say they originally they were the preferred bidder and said that something changed. There was no accusations against Kane Ltd at all on any of this. There’s nobody saying they’ve done anything. It’s all based on how the government handled this bid and what happened there essentially. So Sondica are going for a compensation claim on that.’
Earlier in the summer there was a key hearing alleging tort of negligent misstatement, breach of contract and misfeasance in public office, which the government deny.
