The transformation of an office in the town centre into an 'Innovation Hub' is set to cost more than £10 million – a figure 'far in excess of the expectations'.

Surveys at The Wellsprings, opposite the town hall, suggest it is neither airtight nor watertight and it is beset by problems such as the presence of asbestos.

Currently the transformation of the office into an Innovation Hub, a place to support businesses in the creative and digital sector, is in line for around £8.5 million of investment from a combination of the government's Towns Fund and UK Shared Prosperity Fund.

Recently The Bolton News became the last one to leave The Wellsprings to allow for the work.

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But the surveys of the building, as well as inflation and the introduction of new Building Regulations, mean the transformation is set to cost more than £10 million to Bolton Council.

On Monday leader Martyn Cox is recommended to release £2.65 million from the council's Development Enabling Fund, as well as an additional £200,000 as a contingency, to allow for the work to start as soon as this summer.

A report reads: "If the additional funding is approved then the project will progress. Should the decision be taken not to approve the additional funding the decision will need to be taken whether to [...] hand back Towns Fund and UK Shared Prosperity Fund monies to the Department for Levelling Up, Housing and Communities and the Greater Manchester Combined Authority or to carry out basic works to the building.

"Handing back grant funding may impact on the council's reputation to deliver projects and influence decisions on any future funding bids, whereas carrying out basic works to the building will not provide the outputs and outcomes outlined in both the Towns Fund and UK Shared Prosperity Fund bids."

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Also problematic is the search for a Managing Operator for the Innovation Hub. Bolton Council put the role to tender last year but not one provider applied.

The authority is now in conversations with two providers, Peel L&P and Oxford Innovation, to take on the role on a direct basis rather than on a tender basis.

This article was written by Jack Tooth. To contact him, email jack.tooth@newsquest.co.uk or follow @JTRTooth on Twitter.