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‘No financial sense’ in Aberdeen City Council accepting potential ‘gift’ of John Lewis premises

Norco House, the former John Lewis premises.
Norco House, the former John Lewis premises could become a leisure hallmark with new go-kart track in the works. Image: Kenny Elrick/DC Thomson

It would not make “financial sense” for Aberdeen to take ownership of the city’s former John Lewis department store – even if the council were offered the site for free.

Liberal Democrat council co-leader Ian Yuill appears to have sunk a campaign for the retreating retailer to hand over the George Street premises.

It has been headed by Aberdeen Central MSP Kevin Stewart – of the same SNP parish as Mr Yuill’s ruling coalition partners at the Town House.

John Lewis continues to ponder former Aberdeen store’s future

John Lewis is still considering what can be done with the prominent Norco House building.

The department store was closed in August 2021, having been at the foot of George Street since 1989.

It has left questions about the future of the once-busy shopping street – with council planners drawing up a ‘mini-masterplan’ in an attempt to steer it to recovery.

The entrance to John Lewis from Aberdeen's Bon Accord Centre. Image: DC Thomson.
The entrance to John Lewis from Aberdeen’s Bon Accord Centre. Image: DC Thomson.

The site has been used by NHS Grampian as a vaccination centre, first during the Covid pandemic.

And now, John Lewis has indicated a greater willingness to think about gifting the store to the Granite City.

It is a stronger, more supportive, statement than the firm’s “we are now reviewing options” of last year.

This week, a spokeswoman told The P&J: “The city of Aberdeen proposal (gifting the premises) is among proposals we are currently considering.”

Kevin Stewart MSP: John Lewis handover could be ‘transformational’ for Aberdeen

Her comments came after a renewed effort by SNP Aberdeen Central MSP Kevin Stewart.

In a letter to John Lewis chief operating officer Andy Murphy, he again called for the building to be given to the city as a “gesture of goodwill”.

SNP Aberdeen Central MSP Kevin Stewart has renewed calls for John Lewis to gift their empty premises to the city of Aberdeen. Image: Kami Thomson/DC Thomson.
SNP Aberdeen Central MSP Kevin Stewart has renewed calls for John Lewis to gift their empty premises to the city of Aberdeen. Image: Kami Thomson/DC Thomson.

Since my initial request, I understand there has been little movement on the matter with ideas coming and going and no progression on the building’s future,” he added.

“John Lewis has a reputation, and rightfully so, for being a socially responsible business with high ethical standards.

“That being said, clearly the decision to close the Aberdeen store was devastating for the city and my views on that closure are well known to you.

“Such a gesture could lead to quite transformational change in the heart of Aberdeen’s city centre if John Lewis were to take forward this proposal. And it would go some way in giving back to the people of Aberdeen.”

Aberdeen’s John Lewis was eyed for a new health campus by the SNP

Mr Stewart’s SNP colleagues on the council ran on a manifesto pledge to work with NHS Grampian to “explore options for a city centre health campus”.

During the election campaign, senior Aberdeen SNP figures were keen to look at John Lewis being that site.

John Lewis in George Street, Aberdeen, in April 2021. Image: Kami Thomson/DC Thomson.
John Lewis in George Street, Aberdeen, in April 2021. Image: Kami Thomson/DC Thomson.

Winning the largest share of seats, they formed an administration with the four Liberal Democrats and that promise became council policy.

But since, NHS Grampian has opted to develop a new £130m treatment centre at Foresterhill, chosen over Norco House.

The council is otherwise in tentative talks about making the premises a north-east branch of the Natural History Museum.

Co-leader: Takeover ‘does not make financial sense’

But those plans could be doomed in light of Mr Yuill’s latest input.

Mr Nicoll, his SNP co-leader, did not reply to requests for comment.

Council co-leader Ian Yuill said taking on the liability for Aberdeen's empty John Lewis department store made little "financial sense". His SNP counterpart Alex Nicoll did not comment. Image: Kenny Elrick/DC Thomson.
Council co-leader Ian Yuill said taking on the liability for Aberdeen’s empty John Lewis department store made little ‘financial sense’. His SNP counterpart Alex Nicoll did not comment. Image: Kenny Elrick/DC Thomson.

Current business rates would generate a near £225,000 a year bill for the owners of Norco House. But the tariff on non-domestic properties will soon be reviewed.

And it was that sort of potential liability – at a time of swingeing cuts at the council -which led Mr Yuill to kibosh the idea of a city takeover.

He told The P&J: “We understand this building currently has considerable costs attached to it.

“It does not make financial sense for Aberdeen’s taxpayers for the council to accept any building with substantial liabilities attached to it.”

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