Guildford borough council is to vote on terminating its development agreement with Land Securities for the North Street redevelopment.
Officers have recommended the council consider alternative options for the redevelopment of the site next to the Friary shopping centre – which has scope for a 400,000 sq ft scheme – just over a year after LandSec was chosen as preferred bidder.
A Guildford borough council statement said: “After an in-depth selection process, the decision to select Land Securities as a preferred development partner last year was taken on the understanding that the company would assess the feasibility of the scheme based upon the council’s earlier brief.
“The overall scheme viability outlined in the proposal was not sufficient financially for either party, despite strenuous efforts by the council and Land Securities. Given the outcome of the feasibility exercise, the council will now consider other options for the redevelopment of the North Street site, free from any existing contractual constraints.”
Councillors will vote on the recommendation next week.
The North Street scheme has been beset by a series of set backs in recent years.
LandSec was appointed as preferred bidder after a council u-turn in August 2013, as it originally selected Lend Lease as its preferred partner from a shortlist of three developers that also included Queensberry Real Estate.
Guildford borough council’s lead councillor for planning Paul Spooner said it was right to end the agreement with LandSec as the council prepared to publicly consult on its town centre draft master plan this September.
Riccardo Mai, development director, Land Securities, added: “The feasibility work we have undertaken shows that the North Street development brief as it stands does not facilitate the type of returns either we or the council need and the decision to exit the existing agreement is a mutual one.
“The new round of consultation on the town centre masterplan presents Guildford with a natural opportunity to review its options for the site and the understanding gained over the past months will undoubtedly help that process.”
