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Masterplan for 6,000 new jobs and £400m economic boost for Durham agreed

Published January 17, 2018 11.43am

Ambitious plans which aim to attract more than 6,000 new private sector jobs to a unique business park in Durham City over the next 20 years, will go ahead.

Following endorsement by our Cabinet today (January 17) the masterplan for Aykley Heads - home to Atom Bank and Salvus House - will now progress and a delivery model will follow later this year. The Aykley Heads redevelopment is supported by a number of regional organisations including the North East LEP and North East England Chamber as well as Durham University. The business park approach is also welcomed by high profile regional business people including Sir John Hall and Edward Twiddy - Chief Innovations Officer at Atom Bank.

More than 1,300 people (excluding our staff) are already employed across the site by 40 companies and there is currently very strong interest from a business looking to move into Northumbria House.  The redevelopment of Aykley Heads is planned across three phases - with the first phase likely to progress in the near future.

Preferred proposal

The redevelopment of Aykley Heads also involves us vacating the site and today Cabinet members made a decision on where our new HQ will be built. Following a thorough procurement process the preferred bid is on the council's site at The Sands car park, opposite Freeman's Quay leisure centre. The preferred bid was put forward by Kier Property Developments Limited whose costings to build the new HQ came in significantly less than the cost envelope for the project and of the amount associated with staying in County Hall.

Terry Collins, our Chief Executive, said: "We have been delighted with the response from the four bidders however we feel the preferred proposal offers the best overall value.

"Separately we have also agreed that we will re provide The Sands parking spaces and that we will also facilitate additional parking nearby.

"There are a number of high quality developments currently underway along the city's waterside and we want to make sure we complement those."

Fit for purpose

The procurement process has delivered a scheme significantly less than the build cost envelope agreed previously by Cabinet in July 2016. A new HQ will provide much smaller and fit for purpose civic facilities in a city centre location with greatly reduced running costs and which can support the organisation's ambitious transformation programme. Investment in, and the expansion of, its centres at Spennymoor, Seaham, Crook and Meadowfield will also continue.

The next stage for the new HQ will be to submit a planning application early in the summer, this will include the usual consultation process.

Cllr Simon Henig, our Leader said: "Throughout this process we remain committed to working with all the partners and stakeholders involved. We want to ensure Durham City's waterfront developments complement each other and to support the delivery of an even more vibrant economy, while providing a unique business location at Aykley Heads attracting several thousand additional jobs."

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