York stadium and retail scheme makes city centre stores 'unfeasible'

The stadium is intended to secure the future for York's professional sports clubs

The company behind a major new shopping development in York says the approval of an out-of-town retail scheme has made its plan "unfeasible".

Councillors voted in favour of the Monks Cross scheme, which will include department stores together with a new ground for York City FC, on Thursday.

Development firm Centros said that decision threatened its £200m Castle Piccadilly scheme in the city centre.

Oakgate, the firm behind Monks Cross, said the two schemes could co-exist.

Investment pledge

Steve Bryson, from Centros, said: "We are obviously very disappointed because of the impact on the city centre and how it affects our development.

"It impacts enough to make our scheme unfeasible."

The application could still be called in by the secretary of state, sparking a public inquiry, and Mr Bryson said Centros would wait to see if that happened before making a decision on the future of Castle Piccadilly.

Richard France, from Oakgate, said: "We are very, very delighted with the resounding cross party support the planning committee gave us."

He said he believed the retail sector in York was in a strong position and units in the Castle Piccadilly scheme would let quickly.

"As a developer I would be absolutely delighted with that sort of demand," he added.

"Our scheme will not affect the city centre. We are the only development that can provide a future stadium and that is very important."

Councillor James Alexander, Labour leader of City of York Council, said: "There will be some impact, there is no doubt about that, but us as a council need to make sure we do all that we can to invest in the city centre and put together a package for them.

"We have seen in the town centre retail is strong and it will continue to grow."

York City has argued the new 6,000-seat community stadium is essential for its survival.

Club chairman Jason McGill said: "I am absolutely over the moon, thrilled. It was the right decision for this city."