Councillors are being asked to approve an additional investment of £5.56 million for the redevelopment of the former Debenhams unit in Lichfield city centre.
Lichfield District Council said additional costs have arisen during the construction of the new development, which will be home to an Everyman Cinema and complementary hospitality uses.
The local authority said £2.84 million of the total sum would be used to complete the redevelopment, while £2.72 million would allow it to secure fill ownership of the development once completed.
The council’s cabinet and full council will meet to consider the proposals next week.
Councillor Doug Pullen, Leader of Lichfield District Council, said: “The redevelopment of the former Debenhams building is one of the most significant regeneration projects our district has undertaken and it is now well advanced.
“As with projects of this scale and complexity, additional costs have arisen during construction. Councillors are therefore being asked to consider proposals that would enable the redevelopment to be completed and allow the Council to secure full ownership of the completed asset.
“We have always said we would be open about this project. These proposals will now be considered by councillors before a final decision is made by Full Council.”
The council said the additional costs reflect “market conditions, design development and the complexity of transforming the former department store into a modern leisure destination.”
It added that taking on full ownership of the building would enable the authority to “retain 100% of the rental income generated by the completed development, strengthen its asset base and retain greater control over the future management of this significant city centre asset.”
Construction remains on schedule to complete later this year. Everyman Cinema and the other occupiers will then undertake their fit-out, with the cinema expected to open in spring 2027.
