Expose.news delves into the background of the latest Lord Street project to bite the dust

• Expose.News has asked Chief Minister Hon Alf Cannan MHK for comment on the latest Lord Street calamity.
• And Treasury Minister Hon Dr Alex Allinson MHK, whose department is potentially on the hook for upto £90 million.
• So far, there is radio silence from the IoM govm and we have received nothing in reply.
• However this week we have turned to DoI MinisterHon Dr Michelle Haywood MHK for a response.
• Our questions come after property company Wyyttavin Limited cancelled bid.
• Setback comes amid unrelated bombshell court case involving a different previous developer.
• Sondica Group Inc., is suing both the Treasury and the DoI for upto £90 million for an allegedly corrupt tender – which the Treasury and DoI deny.
• Blue chip advisors Lambert Smith Hampton are also under fire.
• Huge sums at stake in legal fight put IoM’s credit rating at risk – potentially triggering a technical default of its £400m bond issue.

Last week Expose.News explained how the latest planning application in the long-running Lord Street saga had been unexpectedly pulled.

The withdrawn Wyyttavin Limited bid did not survive – even though the development was backed by government cash.

The plan was due to receive funding through the Island Infrastructure Scheme – a government initiative designed to accelerate the regeneration of brownfield sites by offering financial assistance of up to 25 percent of eligible costs.

However, it was the grand announcements at the launch of the project which may lead to some red faces in the corridors of powers on the island this week.

Dr Alex Allinson MHK boasted last May: ‘This further announcement is a significant milestone in regenerating brownfield sites into new developments and reflects the core principles of the Island Plan, aiming to build strong communities and ensure a more secure, vibrant, and sustainable future for the Isle of Man.’

The Treasury Minister added: ‘Through funding from the Economic Strategy Board, we are supporting and incentivising private sector investment into our Island, aligning to the ambition to see £1bn invested over the long term, which in turn will allow us to further create an environment that is vibrant, sustainable, and attractive for all.

‘This support for private sector investment is a key aspect of this Government’s regeneration approach, complementing the direct efforts of the publicly owned Manx Development Corporation (MDC), which is advancing plans for government-owned brownfield sites and contributing to the overall revitalisation of brownfield sites across our Island.’

But the latest uncertainty surrounding Lord Street may not be biggest headache facing Dr Allinson’s underfire department.

His Treasury is also being sued for upto £90 million for allegedly mishandling the previous tender to remodel Lord Street.

The high-stakes court case has been rumbling on in the background for seven years, but has now threatened to spiral out of control.

A separate developer called Sondica Group Incorporated – which pre-dates Wyyttavin’s involvement – has accused the IoM’s government Treasury of malfeasance and misrepresentation, which is denied.

Despite winning the original tender, Sondica was then accused of changing its bid, which resulted in the same tender being re-run.

But then Sondica lost out – coincidentally to Kane Limited, whose sister company later partnered with Wyyttavin  – a decision which Sondica’s lawyers say was allegedly tampered with by government officials.

Kane Limited are not accused of any wrongdoing, and the IoM government have denied corruptly interfering in the process.

Expose.News has reached out to Minister Allison for further comment on the latest developments.

However, despite his earlier comments, other ministers have not been so vocal about Lord Street.

Before Wyyttavin’s shock reversal, Department of Infrastructure supremo Michelle Haywood refused to comment on the plans.

When asked, Minister Haywood told the House of Keys in February that she wanted to respect the ‘independence of the planning system’.

Expose.News has written to Minister Haywood to ask why, and if she had any reservations about the bid two months ago, or whether she had inside knowledge about the unreliability of the application.

She also declined to comment on the separate issue of ongoing legal claims by Sondica Group Inc., linked to the site.

This is despite the public interest concerns from worried residents and commentators, about the potential ramifications of the court case as a result of the public purse being exposed to potential costs of tens of millions of pounds.

The costs could top £100 million, sources close to the case have warned.

Minister Haywood’s DoI department is on the rack for any losses.

Which means that a bumper payout is likely to affect the island’s gold-standard credit rating on Wall Street and in the City of London – and, in turn, cause a technical default of the £400 million loan which the IoM took out in 2021 as bond holders could demand all of their money back now.

Sondica Group was initially chosen as the preferred developer for long-abandoned former bus terminus – which has been described as an ‘eyesore’ – only for its ‘state of the art’ plan to be rejected the following month.

Sondica is also accusing advisors Lambert Smith Hampton – external consultants that the government drafted in to impartially evaluate the bid and ensure fair play – of not being independent and retro-engineering reasons to sabotage their good faith tender, claims which they deny.

The tender was eventually awarded to Kane Limited, which also had a big vision, but one that has remained unfulfilled – the site is still a grim-looking car park – adding to local concerns that the government made a bad call in squashing Sondica’s potential.

In an unrelated move, Minister Haywood has backed motions brought to Tynwald by Douglas East MHK Joney Faragher calling for members to support plans for a potential new bus station in Douglas and calling on the department to work up a detailed plan and bring it back to the court by December this year.

Ms Faragher said the new facility should be ‘a priority’.

Dr Haywood successfully amended Ms Faragher’s motion to stipulate that the scheme shouldn’t be dependent on the completion of plans for the Lord Street Site.