Major city centre scheme delayed following dispute over social housing

A decision on a major property development in Manchester city centre has been delayed in a dispute over affordable housing.

Developer CEG is behind the £79m scheme on the High Street next to the Arndale Centre.

The current building is to be demolished to make for a new property complete with shops and an internal courtyard.

But the developer has halted the scheme after Manchester City councillors called for affordable housing to be included in the project.

The scheme is on the edge of the Northern Quarter and would see a vacant 1970s building replaced with a brand new property.

David Hodgson, head of strategic development north at CEG, explains: “As is widely accepted, the regeneration of this constrained brownfield site is very challenging due to significant abnormal costs – it is adjacent to the tram line and extensive costs are demanded to protect the Manchester trams switch gear in the basement, despite it nearing the end of its lifespan and requiring imminent replacement.

“The development also needs to fund the relocation of corporate occupiers which currently detract from creating an active and inviting street frontage.

“Whilst those expensive constraints make affordable housing difficult, we have listened carefully to Ward Councillor concerns and we are aiming to further bolster the re-evaluation methodology that will provide affordable housing contributions through the reduction of any development costs.

“We had hoped to agree the mechanism with the Council’s legal team by the July committee but need further time to finalise this and will therefore defer the decision, as we feel it is such an important solution.

“The planning committee process is just the first step in the journey to deliver the regeneration of this key site.

“Without a planning permission nothing will happen to this building – it is not suitable for current occupier requirements, is not environmentally friendly and would further detract from the attractiveness of the High Street.

“ The alternative is that we have the ability to work closely with the Council to find ways to reduce costs throughout the scheme and secure affordable housing for the city centre ward.”

CEG has a track record of working with local authorities and has undertaken a similar successful exercise in Leeds with the City Council regarding their project within the South Bank regeneration area.

Designed by Feilden Clegg Bradley Studios, the architecture uses light ivory-white glazed ceramic tiles.

The ground floor and a double height mezzanine would offer a space for independent cafés, restaurants and shops, providing around 65 jobs.

The scheme also reopens the Stationer’s Court to become a public green space connecting the High Street and the Northern Quarter.

FCB Studios has also designed proposals to relocate the popular market stalls on Church Street to a new contemporary style of accommodation offering indoor and outdoor areas, returning the markets to their historic home next to the nearby Church Street car park.