Mayoral powers used to redevelop county hall site
NECAAn elected mayor is to use her devolved powers to help regenerate a major city centre site.
North East Mayor Kim McGuinness announced last week she intended to set up a mayoral development zone (MDZ) and invest £27m to kickstart the redevelopment of Aykley Heads in Durham.
The 62-hectare (153-acre) site is currently home to Durham County Council but plans are in place to redevelop the land and turn it into the Durham Innovation District, which the council claims will help create 4,000 jobs.
McGuinness said she wanted to give Durham a "major boost" and establish a "new home for innovation right at the heart of the city".
"Durham is iconic and its historic university and cathedral are well-known across the globe, but it's also a key strategic city with excellent transport links and home to many amazing businesses," she said.
"I want more growth right across the North East, so I'm pleased we are on our way to establishing a new mayoral development zone for Durham focused on innovation and regeneration of the city including the area in and around County Hall."
What is an MDZ?
MDZs are areas set up by mayors, who can use their developed powers to streamline development through the use of additional funding and delivery tools.
McGuinness and the North East Combined Authority (NECA) have already set up MDZs for Newcastle-Gateshead and Sunderland.
A NECA cabinet report shows the Durham MDZ will receive £12m of investment to pay for "abnormal infrastructure costs", the high price of which has previously deterred private firms from developing on the site, the authority said.
The remaining £15m will be used to finance the first phase of the Durham Innovation District, which is expected to include Durham University's Orbit 2 - a new office space for science and technology companies.
NECA also said it intended to work with the government to establish a "business rate retention zone" around the MDZ, which would allow the local authority to keep a proportion of the rates paid by local businesses.
This money could then be used for further development of the site.
The County Hall building, which is home to Durham County Council, is to be knocked down next year as part of the redevelopment plans.
In its place the local authority wants to build about 40,000 sq m (430,557 sq ft) of commercial floorspace as part of the Durham Innovation District.
Council leader Andrew Husband said the £27m investment would boost its plans to turn Aykley Heads into the "beating heart of the Durham Innovation District".
"This funding and the creation of the Mayoral Development Zone can only help accelerate our exciting vision for the site," he said.
