AS work began this week on the £2m-plus revamp of , the local county councillor has raised concerns about the cost of the project, saying residents are “increasingly concerned.

But Deputy Mayor, Cllr Gordon Mackay said it’s “very exciting” that the diggers are going in.

He added: “I’ve heard some suggest the Town Hall should be either demolished, turned into flats or even shops. I think we’ve got quite enough charity shops already and this ambitious development will provide an amazing space for our community and generate a valuable income for generations going forward.”

Concerns raised about the cost of a project to rejuvenate Midsomer Norton Town Hall have been countered by the town council who call it “an asset worth investing in”.

Midsomer Norton North county councillor Shaun Hughes said residents are increasingly concerned about the cost of the Town Hall project because there had been assurances it would be funded by grants. However, it has been revealed that a £1.5m loan that will take 50 years to repay at a cost of £48,000 per year has been taken out to help pay for the project, and money allocated to other projects moved to this.

Cllr Hughes asked the town council “for some reassurance that the project was now fully costed and would not result in further borrowings”.

The cost of the project’s two phases was confirmed as £2.28m, but with loan interest the total cost will be £2.45 m, he said.

“Additional funds have been raised by taking £250,000 away from other high street projects to prop up the town hall costs,” he added. “This includes £176,000 allocated for the walkway between South Road car park and the High Street. Other funds included £250,000 from the Architectural Heritage Fund, however it was confirmed that this bid, to date, has been unsuccessful.”

The town council told the Journal ‘Phase 1’ relates to the reinstatement of the historic Market Hall at the ground floor of the Town Hall. This phase will cost £1,263,800 which includes a £117,461 contingency fund.

They said the funding is made up from £564,000 of grants (e.g. High Street Heritage Action Zone project) with the Town Council contributing a further £699,000 including £624,000 drawn from the recent Public Works loan.

They admitted funding from other planned High Street Heritage Action projects has been reallocated to the Town Hall Regeneration (including the £176,000 allocated to the South Road access) - but it was due to difficulties in progressing and delivering these aspects within the necessary timescales. Without reallocation, funding would have likely been lost they added.

This reallocation of funds was agreed by simple majority by the HSHAZ Steering Group. “Whilst unfortunate, this was done in the best interests of Midsomer Norton by securing funds which may otherwise have been lost,” they said.

Phase 2 relates to a side extension and refurbishment of the upper floors. This work is financially separate from the grant-funded Phase 1 works and are only in the planning stage. The provisional estimated cost is £1,310,590.

Commitment to preceding with Phase 2 will only follow successful funding applications. The Town Council hope to secure funding for the project and anticipate drawing down the Public Works loan to fund any shortfall.

The Town Council applied for a Public Works Loan of £1.5m which is repayable at £48,000 a year for 50 years. The total cost of the loan, if fully drawn down, will be £2.4m.

The repayments for the Public Works loan are factored into the precept which will not have to rise to cover the loan cost, they said, adding that the renewed and refurbished Town Hall will also generate significantly more income for the community than the building in its current form.

Deputy mayor Cllr Gordon Mackay said: “You see the old pictures of Midsomer Norton before previous generations ripped up our railways, neglected and tore down our buildings and it seems such a shame. This is our chance to not only protect a historical asset, but make it useful and valuable for the community.

“I understand people’s concerns about the costs but we have to consider the income the Town Hall can generate while also providing a fabulous community space. In combination with the reinstatement of a market square at the Island, it’s going to make a real difference. It’s a shame that some project funding has had to be reallocated, especially from the South Road Access route, but it would have been worse if the funding had been lost altogether.

“When considering the costs, we also have to look at what alternative plans would be. Let the building fall further into disrepair? Before we owned the Town Hall, there was no point in us investing in it. But since the asset transfer, we have a community asset which we can invest in for the community.”