A LANDMARK deal has been signed between city council leaders and Network Rail to start the redevelopment of the 35-hectare York Central site.

The Memorandum of Understanding (MoU) creates a historic partnership to start redeveloping the city centre's biggest brownfield site in early 2016, creating 480 new homes and 80,000 square metres of top quality office space.

Council leader James Alexander said the developments were crucial to the city's economic growth, and would meet the need for office space and homes.

He said: "We have been talking about this as a city for many many years, and I am very pleased to see this key strategic site coming forward.

“The potential for this site in the York Northwest area of the city is huge and signing the MoU is a major step to finally being in a position to move the York Central site forwards."

The council has already announced a £10 million investment of public money from the Economic Infrastructure Fund, to fund a new bridge into the site from the A59, as well as £27 million for transport infrastructure in and around the site and the station gateway from the West Yorkshire Plus Transport Fund, and £1.65m for site remediation work from the Leeds City Region Local Growth Fund. The first phases of work could begin next year.

The two partners have been working since last year to develop an initial masterplan for the site, as well as trying to get major funding from central Government for critical infrastructure to the site. And while the MoU does not allocate any new funding, it provides the crucial governance framework for the already allocated money to be drawn down, and will help get hold of extra funds for the scheme.

Council chief executive Kersten England said the agreement is a major milestone, after three and a half years of work with Network Rail.

She added: "It signals a significant turning point in both the site’s history, as well as the city’s. It builds on the momentum for brownfield site development seen in Hungate and on the Terry’s site both already in development.

"York Central will offer the city an opportunity to address the acute, growing shortage of high-quality office space, as well as addressing the severe challenges the city faces in providing homes for York residents."

Network Rail too have hailed the agreement as a major step forward for what they have called a "challenging" site. Phil Verster, managing director for Network Rail’s London North Eastern and East Midland route, said: "We have been working hard with City of York Council to produce a plan which will allow phased and achievable development, and which uses this large piece of land to maximum benefit for York residents and businesses alike."

The 35 hectare site - also know as the Teardrop site - is included in the current publication draft of the Local Plan as an "Area of Opportunity" which could create a "world class urban quarter" and be part of the city centre with residential, business and leisure and tourist uses.

Cllr Alexander said the deal was a framework for how the council and Network Rail would work together over the site, and had allowed Network Rail to consolidate its leases so tenants were not on site or not in particular areas meaning building work can get started.

He added: "Where I think we failed in the past is that we were talking about a grand scheme across the whole site and not trying to deal with all the remedial works needed.

"Since we have been in control of the council we have tried to focus on addressing the infrastructure gap and get the project moving.

"Then landowners realise that this is possible and start to consolidate their leases, and look at investment opportunities."

Members of the public will have an opportunity to see the Teardrop proposals during a consultation on the initial masterplan for the site over the coming months.