CONCERNS about a new £12.6million development in Rhyl that has lost its operator have been raised in the Senedd.

Last week, the Journal reported that the newly developed Queen's Market had been left without an operator. 

Mikhail Hotel & Leisure Group had initially been awarded the contract to operate the premises.

But after "careful consideration and discussion", Denbighshire County Council and Mikhail Hotel & Leisure Group "mutually agreed" not to take forward their proposed partnership.

Both parties agreed that a "collaborative vision" for the Queen's Market could not be achieved.

Gareth Davies, MS for Vale of Clwyd, raised concerns in the Senedd chamber over the company pulling out of the development and also called for an update from the Minister for the Economy, Vaughan Gething, on whether the Welsh Government had a hand in the negotiations with Mikhail Hotel & Leisure Group.

He also asked what the Welsh Government was doing in order to attract businesses to move to, and invest in the new Queen’s Market development, and Rhyl town centre.

Lesley Griffiths MS, Minister for Rural Affairs and North Wales, and Trefnydd, said: “I wasn't aware of what you've just said about the hotel, […] I will ask the Minister to ensure his officials do speak to the owner, if that’s applicable.”

Mr Davies said: "The Welsh Government injected nearly £25 million into Rhyl town centre, particularly the Queen's Market project, in recent years and I'd love to see the Queen's Market open and thriving. But seeing Mikhail hotel pulling out is deeply concerning.

“We have seen multiple staples of the North Wales coastline disappear in recent weeks, and the people of Rhyl need reassurance that they will reap the rewards of the money that's been invested, and it won't be spent in vain.

“Residents in and around Rhyl deserve a revitalised and vibrant town centre and we need to ensure that the vision of a thriving place of business, accommodation, and leisure, becomes a reality.”

Councillor Jason McLellan, Leader of the Council and Lead Member for Economic Growth & Tackling Deprivation, said last week: “The Queen’s Market project is a vitally important part of the long-term development work happening in Rhyl, and structural work on the building is nearing completion.

"The Queen’s Market will provide a unique retail offering to the people of Denbighshire and beyond, and we are committed to ensuring that this project will deliver the very best offering and outcome for the people of Rhyl.

"Work will continue to fit out the facility as planned, and we look forward to the Queens Market opening for business in 2024. 

"We would like to thank the Mikhail Hotel & Leisure Group for their cooperation and collaboration on this project and wish them all the best with their future endeavours.”

Andrew Mikhail, Chairman of the Mikhail Group said: “We would like to thank the team at Denbighshire Council for their support over the last few months as we have enjoyed working with them to find a mutually beneficial solution for this fantastic venue. 

"Ultimately, we felt that the Queens Market didn’t fit within our operating model. We wish the team at the Council every success for the future of the Queens Market project.”

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Former Prestatyn councillor Paul Penlington, who has been selected as Plaid Cymru's Parliamentary Candidate for Clwyd East, said: "Following Denbighshire’s Labour leader’s recently leaked letter informing councillors the county may face bankruptcy, I questioned the authority asking for an update on the Queen's Market ‘development’ in Rhyl. This project currently has no operator lined up, seems to have ceased development and is currently 112 per cent over its original budget, just short of seven million pounds of public money, yet Denbighshire County Council continue pouring public money into this overblown cattle shed with no outcome in sight.

"Combined with several other projects in recent years that have gone way over budget and continue draining funds; SC2, the coastal defence schemes, waste services and more, I calculate at least £10 million has been frittered away with poor financial management of the authority."

The council are implementing a new plan to appoint an operator for the facility.