BY SOPHIE HAZAN
PLANS to build a block of luxury apartments in the city centre have stalled, investors fear.
Rizwana Haq, who runs West Park Properties in Rawdon, Leeds, sold 29 of the 49 flats he had planning permission for at 2, St Peter's Buildings in the Quarry Hill area of Leeds, off-plan four years ago.
At the time investors shelled out 10 per cent deposits on each flat – believed to be valued at £100,000 to £150,000 each – that they bought.
But, bar demolition and clearance of the site, no building work has begun at the site and buyers fear the worst as the construction deadline fast approaches.
Planning permission was granted by Leeds City Council for the flats with ground floor offices and underground parking in May 2002 on condition building began by 2007.
Businessman Vahid Alam said he deposited £20,000 with Mr Haq after buying two lower-level flats four years ago.
The cash has sat dormant since then and Mr Alam wants to see it invested in the project.
Fixed
Mr Alam said: "He (Mr Haq) has been happy to exchange, happy to take the money but he didn't tell us he had outstanding issues with some of the neighbouring businesses in the area."
Construction costs have rocketed by up to 30 per cent since Mr Haq first announced his scheme. His apartments were sold at a fixed price.
Mr Haq told the YEP: "If anyone is losing out here, it is me. The billing price has soared. I will not get any more money for those apartments, but I still have to build and those costs are only rising.
"I have already invested £1 million of my own money here. I have every interest in seeing work begin."
Mr Haq blamed an on-going dispute over responsibility for soundproofing with bosses at the adjacent The Wardrobe jazz club as the cause of the delay.
The club's owner Peter Connolly said insulation will be fitted to prevent noise pollution only when construction begins.
An Ombudsman is now investigating issues over compliance with planning conditions dealing with soundproofing.
Mr Connolly said "We have been here for six years. There is no new issue over soundproofing. Mr Haq knew what he was dealing with when he bought his building. This should have been resolved before he sold these flats."
Mr Haq said construction of the flats will begin in the next two to three months. But outstanding legal disputes with the neighbouring Yorkshire Dance School and Munro House could make this difficult.
A spokesman for Leeds City Council said: "We continue to have positive discussions with The Wardrobe – and the venue's landlord the Playhouse – to secure an agreement which will satisfy West Park Properties that the necessary work will be undertaken before the development is completed."
sophie.hazan@ypn.co.uk