The true cost of refurbishing Croydon’s Fairfield Halls was £76.4 million, well over the £30 million budget.
The work was done by council-owned developer Brick by Brick and Croydon taxpayers are expected to pick up at least some of the costs.
The latest figures are laid out in the company’s 2019-20 accounts published last week which also shows the company lost more than £800,000.
Cash for the works, which were completed in September 2019, were advanced by the council.
The company had also received planning permission to build hundreds of homes next to the arts venue with the aim of financing the refurbishment.
But this land will now not be transferred over to Brick by Brick and the council is expected to try and sell this off to recoup some of the money given to the developer.
Croydon Council has lent the controversial developer nearly £208 million and it was a major contributor to the council’s financial collapse.
The council was forced to declare effective bankruptcy and issue a Section 114 notice banning all non essential spending. This notice has since been lifted thanks to a government loan but spending controls will remain in place for the coming months and years.
In February, the council’s cabinet decided to halt future Brick by Brick projects that will not be completed by October 2021.
In 2019-20 Brick by Brick lost £803,451, compared to the £657,611 lost in the previous financial year.
On November 26 Colm Lacey and Martyn Evans stepped down as directors of Brick by Brick days after a Croydon Council commissioned report recommended they be removed from post.
They were replaced with Ian O’Donnell, a finance consultant at Croydon Council since May 2020 and Duncan Whitfield from Southwark Council who chaired Croydon’s finance review panel.
Despite this, Mr Lacey remains the CEO and says the 2019-20 accounts are a ‘true and fair’ view of the company’s position.
He added: “The final position has clearly been influenced by the difficult financial position being faced by the council.
“In the meantime, Brick by Brick continues to roll out the pipeline of work as agreed with the council with a view to optimising financial returns on these investments and continuing to develop affordable homes in the borough.”
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