The Eagle prepares to land

The opening of the new "The Eagle" housing project in Stafford in January will come nearly four-and-a-half years after the owner's old homeless hostel closed.

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The new £3.4 million scheme has been built on the site of the controversial Bethany Project in Newport Road.

The Bethany Trust, which ran the old hostel, had its funding withdrawn in 2005 after "continued and serious failings" put clients and staff at risk, leading to high rates of crime and anti-social behaviour in the area.

The trust ended up going bust and hostel tenants were being relocated when a blaze ripped through the building, accelerating its closure in August 2005.

The Bethany had opened in June 1993, replacing temporary hostels that had been operated at St George's Hospital and Corporation Street.

Despite concerns over its operation the project attracted grant from Stafford Borough Council and Staffordshire County Council. In 1998 an outreach programme was started with a £20,000 county council grant award.

In April 2001 when Tesco submitted plans for its new superstore in Newport Road the scheme included a new £2 million purpose-built Bethany.

It was not until October 2003 that the Tesco project was given the green light by then Deputy Prime Minister John Prescott.

But in early 2004 Stafford police chief Inspector Mark Hallam hit out at rising crime rate associated with residents of the Newport Road hostel. There were 51 incidents between January 1 and February 3.

The hostel faced a Charity Commission probe after it emerged accounts were overdue. Former members of staff accused the Bethany Trust of shortchanging tenants and the community.

When it also emerged that planning consent had lapsed two-and-a-half years before the annual council grant was held back as a result of that and health and safety issues.

The Bethany was served with notices by Stafford Borough Council, to ensure that vital health and safety improvements were carried out.

In February 2005 , the 'Supporting People' funding body withdrew its £285,000 annual grant, due to serious failings in the trust's management.

This included a lack of support in helping vulnerable people back into private accommodation, lax admissions policy said to have seen people who may have been underage allowed in, alongside ex-convicts and drug users without adequate checks and multiple occupancy.

In May the trust quit the hostel, leaving council bosses to take control.

Following its closure the site became even more of an eyesore, but it was not until May last year that the demolition of the building was completed and construction work on its replacement was able to get underway.

Plans for The Eagle scheme, which retains the former Eagle pub as offices, had been approved in May 2007.