Extra £17m approved for square redevelopment

A council has approved an extra £17m to plug a potential funding gap in a major redevelopment.

The £96m Albion Square scheme, which got under way in 2022, is expected to transform a derelict site in Hull city centre into homes, shops, offices and an urban park.

Hull City Council's (HCC) cabinet approved the capital funding after a report recommended that the money was "allocated to the project to support the potential shortfall between development cost and end value".

The council also agreed to find a new development partner to deliver the next phase of the project.

HCC confirmed in January that the old BHS building had been cleared of asbestos and scaffolding has been coming down as the scheme prepares for its next stage.

The cabinet also approved plans to pay contractor VINCI Construction UK £45,000 a month for preliminary costs such as site checks and security personnel until a partner is secured, according to the Local Democracy Reporting Service.

A formal procurement process to decide whether the site should be refurbished or demolished for a new build will take place after March.

Councillor Paul Drake-Davis, cabinet portfolio holder for HCC, said the council had to "re-evaluate" and added that "the best way forward is with a development partner to reduce risk at a time when finances are tight".

He added: "Securing a lead developer partner is key to delivering Albion Square as successful tenders can advise on the latest market demands and help leverage external funding to help make sure the city has a worthy finished product delivered on sound financial footings."

The development also includes a £14m Community Diagnostic Centre that is due to open this summer with treatments such as MRI scans, X-rays and CT scans.

From 3 March there will be traffic management on the corner of Albion Square and Bond Street to allow cables to be connected to the centre.

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