Council sets up development company after collapse of contractor

Councillors at Bolsover District Council have agreed to establish a wholly owned development company, after their preferred contractor went into administration.

Woodhead Construction announced on 15 September 2022 that it was ceasing trading. The company went into liquidation when it was half-way through a four-year contract with Bolsover.

At a Special Council meeting on Wednesday 2 November 2022, council members heard proposals that the new company would “provide a shareholder return on investment whilst delivering wider social and economic benefits to communities”.

The new company, ‘Dragonfly Development’, will take over building contracts and identify other development projects over the next five years.

Bolsover's Leader, Cllr Steve Fritchley, said: “With government grants reducing all the time, we have to make bold decisions about how we will fund our services, where our income will come from and how we will continue to regenerate and develop the district for the benefit of our communities. If we are to survive, then we have to become more business-minded and self-sufficient and this is the first step in achieving that.”

The council has identified development projects for the next five years including the current construction projects of 80 council properties in Whaley Thorns, Whitwell and Shirebrook and the new £3m Creswell Heritage and Wellbeing Centre.

The council has said that Dragonfly Development will initially focus on two areas:

• Housing - The increase in ‘Right to Buy’ requests for council properties far outweighs the number of council houses being built, it said. "But Dragonfly Construction can assist the council in building up its housing stock, retaining the income and safeguarding jobs, all in line with market needs."
• Commercial - The new company "has the necessary skills and ability to find and match land to meet demand and build bespoke commercial developments that will create jobs and improve the local economy".

Grant Galloway, Chief Executive of Dragonfly Development, said: “We have our bread and butter developments of housing and commercial properties. But we will also be looking at commercial and retail investment opportunities.

“This will not only provide us with a healthy yield, but enable us to buy a stake in town and village centres and influence how they look and feel as well as boosting the local economy.”