The city council risks eradicating Birmingham's world renowned Jewellery Quarter if traders are forced out by controversial sell-off proposals, bosses have been warned.
The authority has revealed its plans to dispose of dozens of buildings in the area as part of its new Property Strategy, which was approved by the cabinet last month.
The proposals are intended to bring in investment and kick-start regeneration of the area - as well as generate cash - but they have sparked concerns among traders fearful for the future of their businesses.
Karen Murphy, whose business Jewelcast on Caroline Street is in one of the buildings being sold, said: "I was shocked when I received a letter from the council informing me the building would be sold with bids being submitted over the Christmas period.
"We are a very successful businesses with orders from all over the world and have just expanded within the building that is being sold. We employ 28 people.
"All I’ve been told is that the existing lease will have to be honoured by any new owner but that doesn’t give us the long-term certainty a business needs."
The properties to be disposed of in the Jewellery Quarter are:
58 to 60 Caroline Street - A car park and two Grade II listed buildings containing workshops serving small jewellery firms.
18 to 23 Summer Hill - A former 27-bed hostel, now vacant, which has been touted for housing.
11 to 17 Pitsford Street - Accommodates four shops and 19 workshops opposite Warstone Lane Cemetery.
Vyse Street Triangle - A total of 51 units in the triangular parcel of land between Vyse Street, Spencer Street and Hockley Street.
The Caroline Street buildings are to be put up for sale while the other properties are to be offered on 250-year lease agreements.
The masterplan was subject to debate at the council's Economy and Skill overview and scrutiny committee yesterday (Wednesday, December 5).
Cllr Ken Wood (Cons, Sutton Walmley and Minworth) said: "We have had a number of concerned tenants from the Jewellery Quarter contact us.
"It is not so much about being against someone looking at the property but apparently they first heard about it in a letter.
"We have got a thriving Jewellery Quarter renowned throughout the whole country.
"If we chase businesses out of the Jewellery Quarter there won't be one.
"We need to get the traders together and show them the opportunities but not opportunities in the back end of nowhere."
Cllr Phil Davis (Lab, Billesley), who is also chair of the Jewellery Quarter Development Trust , said some of the information in the masterplan had been misinterpreted.
The document also proposes to explore a wider project to regenerate the area.
It states: "In addition to the disposal of surplus properties in the Jewellery Quarter by sale of long leaseholds and freeholds it is proposed to explore a project to encourage the retention of local talent and skills, relocation in to the region of creative industries and preserve heritage and emerging culture.
"This will help address the dissipation of creative industries in the Jewellery Quarter.
"The council has been approached by a consortium who wishes to invest in the area to re-energise the unique creative cluster to benefit the region and to develop an innovative network which links social housing, support services and creative workspace.
"Detail of the project will be the subject of a future executive report."
Kathryn Jones, interim assistant director for property, admitted the council needed to 'up our game' around communication with tenants and said the problem had arose because the strategy had been published at the same time as a prospectus offering up the sites.
But she said the Jewellery Quarter was an example of a council asset in need of investment from a partner organisation and the need to communicate with tenants had to be balanced with making clear decisions around the council's property portfolio.
The council's opposition Conservative group, has called for greater commitment from the Labour administration, to ensure jewellery firms are safeguarded.
Cllr Ewan Mackey (Cons, Sutton Roughley) said: "This is not about who owns the buildings but about how the council have approached the decision, with no long-term protections for existing businesses or discussions with them about alternative approaches.
"Instead they are launching a fire sale of their interests in the area to help cover for their own financial mistakes such as the costly bin strike.
"When a council has an historic asset was special as the Jewellery Quarter in its area it should be doing all it can to protect and enhance it, people come from all over the country to visit and businesses export all over the world because the Jewellery Quarter is synonymous with high quality and great value jewellery."
