Council leaders have unveiled a new plan to transform a scrapped film studio project, once linked to Netflix, into affordable housing.
The streaming giant had been expected to establish its UK base at Ashford’s disused Newtown railway works, part of a redevelopment of the 12-acre plot that has already cost more than £27 million.
It was set to include four film studios, 303 flats, an 18-storey hotel, commercial units, a rooftop restaurant and a 400-space multi-storey car park, along with a facility for Ashford College.
The Ashford International Development Company (AIDC), which is behind the scheme, decided to drop the studios part of the project as it “can’t ignore the financial realities”.
AIDC is 65% owned by ABC and 35% by developers Quinn Estates, which secured planning permission for the proposal in 2020.
Already, the project has received £14.7 million of Levelling Up funding from the government in 2021 and £13 million of a £50 million loan from ABC.
Now, council leader, Cllr Noel Ovenden (Ind) has revealed his aspiration to construct 200 affordable homes to replace the four film studios, along with the hotel, restaurant and car park, which will now not go ahead.
He said: “From well over a year ago, I’d received pressure from other members on what plan B was.
“Now we’ve exhausted every avenue that we can towards a studio operator on that site without gambling tens of millions of pounds that we don’t have into a project that may or may not work.
“Elwick Place was a classic example of that. It was a brilliant idea, right in its time, that circumstances changed, and we had to step in, make some quite dramatic moves in order to retain that facility for use in the town.
“Ashford doesn’t need another one of those, where we are scrambling to support something that may not, at that time, generate what it needs to.
“There was always going to be a point where we’ve done everything we can, and that’s where we are.
“I must be clear, it’s an aspiration that I want to see 200 social or affordable homes on that site, and I will carry on driving that aspiration.”
Cllr Ovenden added that although an application is yet to be submitted, planning policy presents a potential problem, as there is no requirement for town centre developments to provide affordable housing.
In 2023, ABC granted a £50 million loan to the AIDC for the project. According to a report for the trade and enterprise board, £13 million has been drawn down so far.
This additional funding was provided at a market interest rate.
ABC have since confirmed the loan is secured against the site and is “locked down” until a scheme is delivered there.
Works so far have made the site more viable for future development, which they say will secure the value of the loan.
With the levelling up funding, works to the listed buildings have taken place, including brickwork cleaning and repairs to the locomotive and engine sheds, and restorations to the Clock Tower, paint and acetylene store.
This, along with the construction of access roads to the site and utilities works, has taken place to bring the scheme forward.
Cllr Ovenden added that money already spent on the site has not been wasted, but instead improved the viability of the plot for the future project.
He added: “We had to look at Newtown as a barely viable site because it was brownfield and the number of listed buildings. Without levelling up funding, it just couldn’t have happened.
“Nobody has been idle on that site, and any money has been well spent.
“The brickwork renovations, for example, where the housing is built within the engine sheds, will still be part of a future application.
“All of the rest of the groundworks, drainage, electricity, services, they’re all underground now, and the site is ready to go, it’s been future-proofed in a way.
“There’s no abortive work, and there may be changes if a new application comes through regarding infrastructure and highways, because everything will have to go through a new application.”
Bosses say funding for the college facility will be redistributed by “being delivered through off-site provisions elsewhere in Ashford”.
Cllr Diccon Spain (Lab) was disappointed to see his fears realised, with the studio project unable to go ahead.
“I’ve always asked about a plan B and pushed to make sure there was a fallback,” he said.
“It’s unfortunate that my worries have transpired, and the main project to provide a creative scheme has fallen through, and we are left with potentially a residential-led scheme.
“It all depends now on what comes forward. It’s disappointing to lose the employment aspect of this site and to potentially end up with a fully residential scheme, and I’d like to see the heritage of the site honoured.
“But I hope that going forward, something is provided to benefit the people of Ashford. I don’t want to prejudge the next steps, but it is an important site and we just have to see what comes forward.”
The decision on the future of the Newtown site received approval from ABC’s cabinet on Thursday but still needs to go before the full council this week. However, the move is not expected to be blocked.
