Truro: Pydar development scheme needs £10m council cash

An artist's impression of Pydar Square at the new Truro development

A £160m project in Truro needs £10m from the council to continue, a report states.

Next week, Cornwall Council's cabinet will hear how work on the Pydar Regeneration Scheme could become "abortive" without extra funding.

A report, by senior council officers, said the Pydar scheme was at a "critical stage".

The project will bring 300 homes, a university centre, a hotel and restaurants to the city.

It is set to include 300 homes, space for 400 students, restaurants, nature trails, and hospitality and cultural facilities.

Falmouth University will be the anchor tenant at the Pydar redevelopment

There are also plans to create a hub for creative industries with Falmouth University, aiming to attract young businesses and students into the heart of the city, as reported by the Local Democracy Reporting Service.

Outline approval for the scheme was granted by Cornwall Council's strategic planning committee and demolition works have been partially completed.

The council's cabinet is now being asked to provide capital funding totalling £10m to cover the project costs over the next two years to allow for further design and re-phasing work before a full business case is presented.

'Shovel ready'

A report to the council's cabinet, to be discussed on 20 March, said since July 2022, the project had suffered from significant construction inflation, which had stalled the ability to sign a private finance funding deal.

Changes to the Building Safety Act last year placed additional requirements on residential buildings above 18 metres, a sudden change from the previous 30 metres guidance, which means parts of the Pydar scheme will need "an element of redesign".

The report, written by senior council officers, says: "The investment of c.£6m in the project to date has made the project shovel ready and this could easily become abortive if the project does not progress.

"In addition, there is a risk of losing market interest and a delay could impact active negotiations with new businesses to Truro including the university sector, hoteliers, workspace providers and leisure facilities."