A CONTROVERSIAL hotel project has moved another step closer to getting off the ground despite concerns about its viability.

Members of Stockton Borough Council’s planning committee resisted strong opposition to the multi-million pound project and approved the design of the 125-bedroom hotel.

The scheme, which has angered some campaigners, will see the local authority borrow £17m to finance the town centre hotel before leasing the building to the international group – Hilton Hotel.

Despite claims that the ambitious project could have a massive impact on the borough’s finances if it fails, council officers remained adamant that it would be a success for the town.

At today’s meeting, committee chairman Councillor Norma Stephenson warned members of the of public and councillors to stick to planning related questions and not stray into the viability of the hotel or the potential economic impact on the local authority.

Terry Chapman, a former Labour councillor, has been calling on the council to be open and transparent about a feasibility study into the scheme.

Speaking at the meeting, he said: “The fact that I submitted a Freedom of Information application to find out the details, which your council rejected and the Information Commissioner’s Office (ICO) ruling the council should release it – I still haven’t seen it so still can’t make a considered decision on whether I support the application or not.

“Clearly, this is a controversial matter, it may be a suitable development on this site but it’s not something this council should be imposing on the town.”

The hotel, which will be built on the former dairy site on Bishop Street on Stockton Riverside, is part of the town’s North Shore regeneration scheme.

Projections forecast the council would receive net operating profits of £1.2m per year, which it says would more than cover the estimated £830,000 per year required to pay back the borrowing over 35 years.

The council says it is estimating around an 85 per cent occupancy rate to make the hotel viable, which campaigners have raised concerns about.

Local businessman Kevin Bowler spoke in favour of the application, he said: “I personally support it and I think good for Stockton – I think people should get behind. People I know in the business community would certainly welcome the hotel.”

Cllr Phil Dennis raised concerns about the energy efficiency of the proposals but was reassured that the hotel group would expect high performing facilities and the plans were for a sustainable, contemporary hotel.

A bid to defer the decision was voted down by members before the original recommendation for approval was passed.