00:00Plans for a major new arena and convention centre on Gateshead Quayside may still be alive, despite long delays and spiralling costs.
00:08North-East Mayor Kim McGuinness has said she remains confident that the project will go ahead,
00:13describing the site as pretty much the best place in the country for such a development.
00:18The proposed 12,500-seat arena was expected to transform the south bank of the River Tyne,
00:24sitting between the Glasshouse Music Centre and the Baltic Art Gallery.
00:28But construction, which was due to begin in autumn 2023, never started.
00:33The project's estimated cost has soared from £260 million to over £350 million,
00:39prompting a full review of its viability.
00:42A study commissioned by the North-East Combined Authority earlier this year
00:45is currently assessing what kind of development is now financially and commercially feasible.
00:51The outcome of that review is expected to guide the full future of the scheme
00:55and potentially the fate of the existing utility arena in Newcastle,
01:00which the Quayside venue was originally intended to replace.
01:03Speaking during a visit to the city to welcome a separate £120 million government funding package
01:09for nearby housing at the Quayside West site,
01:12Mayor McGuinness emphasised the importance of keeping the North-East competitive
01:16on the national and international stage.
01:19The escalating costs of the Gateshead Keys project have been linked to a mix of post-COVID inflation,
01:25Brexit-related supply issues, the war in Ukraine and broader industry pressures.
01:31Gateshead Council leader Martin Gannon previously estimated the funding shortfall
01:35to be less than £100 million, while no firm decision has yet been made.
01:41City leaders continue to push for a revised scheme that can move forward.
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