The site is both financially valuable and strategically important, lying just outside the city walls in a largely residential area.
A total of eleven bids were received for the site from nine bidders, seven of which are conditional upon planning permission being obtained.
There were a range of bids for different schemes with vastly different values ranging from £600k to some £1.6m.
The Executive will be asked to approve the Norstar Real Estates proposal as the preferred bid and if approved, the council will enter into detailed commercial discussions. Norstar Real Estates placed the highest bid of £1.6m and are proposing to convert the existing building into 29 one bedroom flats for sale or rent, including on site affordable homes.
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