Current owner Mosaic Global Investments Ltd has recently indicated it wants to sell the land only months after it was granted planning permission for 378 flats, hotel, a food store, gym and retail space.
With the private sector failing to deliver time and time again at Teville Gate, the borough council has decided to step in and enter into a joint venture with affordable homes provider VIVID.
The plan is to build 230 new homes on the site, 130 of which would be affordable, alongside retail, cafe/restaurant and community uses.
The proposals were approved by the council’s joint strategic committee on Tuesday (November 3), where the emphasis was on placemaking and design and not just delivering a ‘blob of housing’.
Kevin Jenkins, executive member for regeneration, said it was time for the council to ‘put some skin in the game’, adding: “It’s the right time for us to step in and make a difference in the town.
“We can’t allow this opportunity to slip through our fingers.”
Officers explained that while VIVID would purchase the land, the council would share the development risk on the market housing.
Negotiations will continue and once a final agreement has been reached it will come back to councillors for final sign off.
The council’s investment would be in the region of £12.5m.
Dan Humphreys, leader of the council, pointed out how they and the local enterprise partnership had secured funding to clear Teville Gate and the site was in the ‘best position for developing’ than it has been for years.
He said: “This is another big step for this council if we can pull off this deal.”