BARONS Quay is costing £40,000 per week in interest payments, the Guardian can reveal.

Cheshire West and Chester Council took out a £62 million loan in 2014 to fund the construction of the development after failing to secure a third-party investor.

A Freedom of Information request by the Guardian reveals the council has paid more than £7.5 million in interest since March 2014 and will top £8 million by the end of this year.

From March 6, 2014 to May 24, 2014, the council paid £45,659.18 per week in interest. From May 25, 2014 to November 24, 2014 it paid £44,745.99 per week, a total of £1,118,649.75.

This figure has gradually decreased by around £1,000 every 25 weeks.

This is in addition to the £27,575.28 per month in ‘service costs’ associated with the 28 vacant units.

Currently the only tenants are Asda, Odeon and Wildwood.

Cllr Sam Naylor, CWAC member for Winnington and Castle, said he would be ‘dead and buried’ before Barons Quay began to make a profit.

The Labour councillor said: “When Barons Quay was initiated, the powers that be did the sums, they knew what they were doing and they thought it was a good investment. The powers that be at the time took a gamble, but hopefully it is a gamble that will pay off.

“Barons Quay it not going to be paid off for at least 25 years. It will cost taxpayers for the next 25 years. It is for future generations to get the return, hopefully.”

The council is also set to invest £57 million of taxpayers’ money on Chester’s Northgate retail and leisure complex.

A report discussed by CWAC’s cabinet on October 11 revealed that no third-party investor had been secured to fund the scheme through its construction phase.

Addressing the cabinet as a public speaker, Andrew Needham, chairman of Cheshire Campaign Rural England (CPRE), said Northgate would be a ‘deterrent’ to potential interest in Barons Quay.

The former Tory councillor said: “This proposal for Northgate in Chester, apart from being very risky, seems to go against what you are hoping to achieve in Northwich.

“This will be seen as a deterrent to potential interest in Northwich retail.”

Cllr Naylor said he did not believe Northgate will have a detrimental effect on Barons Quay.

He said there was going to be a ‘big push’ to get the units filled in the £80 million development but reiterated that it is likely to be spring 2018 until any new businesses opened in the development.

Cllr Naylor also said the council has a ‘back up plan’ if it could not attract and major businesses.

A council spokesman said: “The council has a long-term financing strategy for the Barons Quay scheme and during the construction phase (which is due to be completed in November), the interest costs have been charged as capital expenditure against the scheme budget and will be funded through the long-term income payable by tenants.

“It should be noted that the council’s financial assumptions relating to Barons Quay are robust and include a significant allowance for void unit costs throughout the lifecycle of the asset.

“The council’s investment in Barons Quay is one that is expected to deliver a return over the long -term, and as such considering short-term financing costs in isolation does not properly reflect the full financial position.

“The council is currently in receipt of rental income from the existing tenants which will fund the interest charges referred to above once the construction phase is complete.”