Council plans to buy delayed development

Durham's Milburngate was initially due to open in 2022

A delayed city centre development could finally be completed under council plans to buy the site and open a major leisure and hospitality venture.

Durham County Council hopes to acquire Milburngate in Durham City to end years of uncertainty around the site's future.

Councillors will next week be asked to agree to proceed with negotiations to buy the freehold.

Built on the site of the former Passport and National Savings and Investment offices, Milburngate links the city centre to the planned new Durham Innovation District.

The acquisition and future development of the site are estimated to cost about £55m and will be self-financed, the Local Democracy Reporting Service said.

The development was scheduled to open by the end of 2022 but has run into several issues.

Construction company Tolent entered administration in 2023, while questions about fire safety issues delayed construction further.

'Red tape'

It was hoped the joint venture of Arlington Real Estate and Richardson would see more than 150 rental apartments built as well as office space, and attract leisure and hospitality firms.

Previously, BrewDog expressed frustration at investing £1m and not being able to open - hitting out at the "never-ending bureaucratic red tape".

In January, the developers of the multimillion-pound development, which also features the Premier Inn hotel chain and Everyman Cinema, insisted talks "remain ongoing" despite units sitting empty.

If the proposal is agreed upon, the coalition-led council will work with tenants and other stakeholders to ensure the development is fully completed and open to the public "as soon as practicable".

Councillor Elizabeth Scott, cabinet member for economy and partnerships, said the authority was "very aware of the economic significance of Milburngate to the city and wider county".

Labour blamed the administration for the delays and criticised its management of the site.

Party leader councillor Carl Marshall said: "An empty Milburngate now stands as a shameful monument to the complacency and failures of the Tories, Lib Dems and Independents running this authority."