The long-awaited redevelopment of Charter Place shopping centre has moved closer with the signing of a key legal agreement this week.

Watford Borough Council, which owns the centre, has agreed the terms of for a long lease with intu, operators of the neighbouring intu Watford centre.

The deal paves the way for a promised £80 million regeneration of Charter Place, which aimed at drawing new shops, restaurants and a cinema to the run-down shopping centre.

Watford Observer:

Digital image of the revamped Charter Place.

Dorothy Thornhill, elected mayor of Watford, said: “intu has really exciting plans for Watford which supports our strategy of investing in the future of the town. 

"While many other areas of the country are struggling, this is a real vote of confidence for Watford. I’m really pleased with the mix of leisure and retail that will be coming, together with the extra jobs that will be created. 

"The bottom line for me is that Watford residents deserve the best and they’re going to get it."

The agreement will see intu pay £2,075,000 a year to the borough council in rent for the centre and Palace car park.

The borough is also set to get seven per cent of the income intu makes from Charter Place above £8.3 million and will also get a slice of the revenue from the Palace car park.

The agreement will see the council take control of the Gade, Sutton, and Church car parks, which had been handed to intu - formerly Capital Shopping Centres - as part of the original Harlequin deal in the 1987.

The lease has initially been agreed on a temporary basis. But after the new shopping centre it built, Charter Place will become part of intu's 999-year lease on the Harlequin.

The latest development comes after the council’s ambitions to regenerate the aging centre have been hampered by a decade of false starts.

Capital Shopping Centres were the first company to take up the project in 2003 but was dismissed five years later after the council could not agree any of its plans.

The next developer appointed, London & Regional, pulled out of the scheme in 2011 saying the project was no longer “a core business requirement.”

The third company employed, Henry Boot, was kicked off the project and paid more than £500,000 compensation last year after Capital Shopping Centres indicated it was interested in scheme again.

Watford Observer:

Charter Place in its current state.

In February Capital Shopping Centres rebranded itself as intu and changed the name of The Harlequin to intu Watford in the process.

Now the legal deal for Charter Place has been agreed the next step will be for intu to submit its plans to Watford Borough Council’s development control committee.

As part of the proposals Watford Market is due to be moved to the TJ Hughes car park with a new entrance from High Street.