Multi-million city regeneration plan is facing ‘significant delay’

A MULTI-MILLION pound York regeneration scheme faces a “significant delay”, the council said, amid claims the authority has “lost control” of the project.

Progress on the Castle Mills site, which will feature a new riverside park and a pedestrian and cycle bridge, has stalled after City of York Council terminated its contract with construction company Wates.

Covid, Brexit and rising inflation have been blamed, with the council also not happy with elements of the design, according to its own report. Castle Mills is crucial to the success of the connected Castle Gateway scheme – set to transform the current Castle Car Park and Eye of York into “a world-class public space” – as it will also include a block of flats that will help fund the wider project.

The council must now find a new contractor, meaning Castle Mills’ construction will be delayed until summer 2023 at the earliest.

Coun Nigel Ayre, executive member for finance and performance, welcomed the news.

He said: “With a planning application due to be determined and funding bids submitted to government, we are making significant progress in transforming the Castle Gateway into a worldclass public space.”

At a meeting on Thursday, councillors will be asked to approve a bid to the Government’s Levelling Up fund for £10m towards the Castle Gateway scheme.

But York is in the lowest priority area for Levelling Up investment and a previous council submission to the fund was unsuccessful.

Labour leader, Coun Claire Douglas, said: “The Lib DemGreen council’s Castle Gateway project is in all kinds of trouble, as this latest report makes clear.”

The delay has also pushed back a decision on whether to build a new multi-storey car park on St George’s Field, to replace Castle Car Park.

The plans are controversial and have faced numerous setbacks. The council’s own deputy leader, Coun Andy D’Agorne, said the proposal was “dead in the water” in April, but others on the council – and many in the business community – say replacement car parking must be found before Castle Car Park is closed.

Coun D’Agorne has called for a car park decision to be made now “so that residents and businesses are clear”.

Senior councillors will be asked on Thursday to use the extra time to collect more parking data and engage more with stakeholders “to inform a future decision around replacement car parking”, the council said.

Coun Douglas added: “Ruling parties in York have completely lost control of what should be a visionary project well on its way to delivery. Instead, they are relying on as yet unawarded Levelling Up funding from a Tory Government which has just been found by a key parliamentary committee to be funnelling funding to key political target areas, of which York is not one.

“This project is drifting into a spiral of endless delays and cost increases. Will it ever become a reality?”

Coun Ayre said: “We remain committed to replacing lost car parking from the closure of Castle Car Park and are resolute in our desire to make the best decisions for the city, its economic recovery and our communities.”

The project is in all kinds of trouble, as this latest report makes clear. Labour leader, Coun Claire Douglas.