Massive restoration project at derelict Lancaster building brings new deli and wine bar to city centre

The team at The Quarterhouse in Moor Lane are behind Stonewell Spring, which will open at 4-5 Stonewell later this summer.

The whole building has been renovated and refurbished thanks to architect Peter Mercer and his brother John of Mercer Property Investments, having stood derelict for a decade.

Peter and John have been renovating residential buildings in Lancaster for 18 years, but this was their first commercial venture.

"We saw this as a good opportunity when it came up for sale," Peter said. "I liked the look of the building, it's in a prominent position and I am passionate about historic buildings.

"We have had so many people stopping and talking to us about it, it's eally struck a chord with people."

The property had been empty for 10 years, having been bought by a developer as part of the original Canal Corridor scheme.

However, as well as being in the city centre conservation area, the property falls under Lancaster City Council's High Streets Heritage Action Zone, a four-year initiative between Historic England and local authorities to regenerate buildings.

As a result of this, both the Mercers and the Quarterhouse team were able to apply for grant funding towards the work needed at the premises.

"That helped us to achieve an even better result than we could have done without it," Peter said.

"We first converted the upper floors into four luxury studio flats which were first occupied in September 2021 and then set about the restoration of the ground floor retail unit, which involved the construction of a new timber shopfront and the creation of a micro mosaic tiled entrance feature to honour the Baxter family, who originally built the shop in 1887 to accommodate their successful linen and drapery business.

"The project has been a huge success, taking a unused and dilapidated building and repurposing it into high quality residential accommodation as well as creating a home for a new local business.

"There's a lot of bad publicity about historic buildings in Lancaster being left to rot so I think this is a good news story for Lancaster."

Peter said many local craftspeople had been employed in the restoration and renovation work, including Dave Walker of Walkers Woodworking who made the timber shop front, local artist Gill Aitken who made the mosaic, and Steve Carne (Carne & Co) who handpainted the traditional window signage.

The Quarterhouse team signed the lease on the new shop in March.

"It took a lot of time to get the right shop," Peter said. "I was very clear in my own mind that I wanted it to be a local independent business and I couldn't have asked for a better business to turn up.

"To see it all occupied gives us a great sense of pride. It's really rewarding and it proves that if you do something of real quality then people appreciate it."

The new deli is handily placed just a few doors away from The Quarterhouse, which was opened in 2019 by Alan Hempton and James Cocker, who are both from Lancaster.

The idea to expand and open a delicatessen arose when the pair operated a deli at the front of The Quarterhouse during the Covid pandemic.

"It was at that point that we thought maybe we could open a deli as well," Alan said, "but we had to get back on our feet first after Covid."

When they eventually began looking for new premises, they knew straight away that Stonewell would be perfect for their project.

"It's a great location and once we saw it we knew it was the one," James said.

The premises was originally owned by the Baxter family, who made their own soft drinks on site using water from the nearby Stonewell spring - hence the new name.

The pair hope they can help fill a void in the market and introduce customers to many local food producers.

"We felt that over the last few years, Lancaster has lost a lot of its local food shops," James said. "This is a chance to bring some locally produced artisan food back to the city centre. Most of it will be from small artisan producers from across the north west.

"We will also be selling things that we sell at The Quarterhouse. We get a lot of people asking to buy things to take away that we have on the menu."

Produce on sale at the new deli will include cheeses, meats, bread, fish, some dry food, fresh local vegetables and other speciality ingredients including hand-made chocolates.

"There will be things people would want to buy for gifts or a hamper, or just because they want to cook something nice," Alan added.

The venue will operate as a wine bar in the evenings, as well as offering coffee and snacks during the day.

Both full and part-time job opportunities are expected to be available once work nears completion.

Jonathan Noad, Lancaster City Council’s chief officer for sustainable growth, said: “We’re delighted to have been involved in the transformation of this building as part of the four year Lancaster High Streets Heritage Action Zone, which is co-funded by Historic England, Lancaster City Council and supported by other local partners.

“The aim of the programme is to deliver heritage-led regeneration to shape a sustainable future for the Mill Race area which is a key part of the city centre.

“The re-use of 4-5 Stonewell following the restoration and reinstatement of the historic fabric of the building is a perfect example of working in partnership with local building and business owners to achieve high quality results that help make the Mill Race area a more attractive place to be.”