Work on a new office block in Sheffield is expected to go ahead after the council signed an ‘innovative’ agreement with developers.
Council bosses have revealed the authority will buy 3 St Paul’s Place, on Norfolk Street, from development firm CTP Limited if they want to sell the block.
Construction is likely to start in the new year and could be completed by 2015, subject to approval of a European Regional Development Fund grant.
The site will cover 78,000 square feet which the council says will meet a growing demand for office accommodation from blue chip firms in the financial and legal sectors.
The 10-storey office block will include bars, restaurants and car parking, completing the Heart of the City project.
Coun Bryan Lodge, cabinet member for finance and resources, said: “These are challenging economic conditions and the council is taking the initiative to make things happen.”
CTP intend to sell the completed building to a private sector buyer.
But the developers admit in the current market securing funding for a speculative development is almost impossible.
The agreement means the council will buy the property, 12 months after it has been built, unless CTP keep it or sell to another party at a higher price.
The price which the council would pay has been negotiated by external surveyors.