Guildhall £20 million financing package collapsing

A late report submitted to a Council scrutiny meeting yesterday admitted that a proposal restaurant at a remodelled Guildhall is unlikely to find an occupant at least in the short term.

The rental from the restaurant formed a key part of the financial package for he project which has been criticised for being over ambitious and risky.

Option 1 was agreed by the Council in 2018

It now seems that the income will be significantly less than forecast with building delays and cost over runs still to be added into the equation.

Taxpayers were already facing an annual subsidy cost of around £600,000.

Yesterday’s report

The new complex is now not expected to be competed before the summer of 2021.

Details of the project can be found by clicking here

The report also reviews the future of the Castle Gateway and York Central projects. The former is currently “paused”. Given the parlous state of the councils finances the authority would be wise to freeze expenditure on this plan leaving things as they are for a while at least.

Opportunities may arise over the next few years to sell the Castle Mills and 17/21 Piccadilly sites as the economy improves

The key is to remain flexible if taxpayers interests are to be protected.

In the meantime parking revenue remains vital for the Councils budget while accessible car parking at Castle and (potentially) Castle Mills (surface level) and 17/21 Piccadilly could be an important part of the attempt to revive the City economy.

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.