THE sale of a valuable historic building in the heart of York has prompted accusations of bad financial management at City of York Council.

29 Castlegate, once the home of youth advice services in York, is being sold by the city council to York Conservation Trust.

The sale was agreed on Thursday night, at a 25 per cent discount to take into account the “economic and social value” the trust’s plan to use it as an extension to neighbouring Fairfax House will bring.

York Press:

Opposition councillors have criticised that decision, saying that selling the Grade II-listed building for £431,000 instead of the market price of £575,000 is both wrong and a sign of financial incompetence.

Labour’s deputy leader, Cllr Stuart Barnes said: “The current Tory-Lib Dem Coalition is demonstrating time and again a disregard for sound financial management.

“Not just in this latest flash sale of council assets, but across a range of issues we’re seeing dithering and incompetence that is costing York’s taxpayers a fortune.

“First we saw the Tories dither as they tried to unpick Labour’s plans for the renovation of the Guildhall which include the creation of high skilled, high paid jobs so desperately needed in York.”

The administration eventually decided to go ahead with very similar plans, he added, but the delay meant they lost £1.5 million of lottery grants.

Costs have also escalated at the Community Stadium, he added.

The sale of 29 Castlegate first emerged when Labour were in charge of the council, and on Thursday night the party’s leader Janet Looker conceded there was some merit in a discounted sale.

But she questioned whether the 25 per cent discount was good value for money.

However, Conservative council leader David Carr accused the Labour members of not knowing a good deal “if it jumped out in front of them”.

Selling 29 Castlegate to York Conservation Trust will enable £3 million of improvements to Fairfax House, and full disabled access to the site, he said.

“The council’s commercial position will be protected by restrictions in the sale agreement which will force a repayment of the discount in the unlikely event the property is used for any commercial purpose in the future,” Cllr Carr added.