CITY of York Council’s executive has backed a report recommending the creation of a £155 million budget to fund core infrastructure on the York Central site - and proposes that the authority borrows £35 million.

At a meeting on Thursday, the executive considered the investment case for the site’s Enterprise Zone and recommended that the full council establish a capital budget.

York Central will transform 72 hectares of underused brownfield site behind York Railway Station into residential neighbourhoods, cultural spaces and a commercial quarter. It will provide up to 2,500 homes, up to 100,000 square metres of commercial space and could create 6,500 new jobs.

The budget of £155 million to fund core infrastructure will come from a variety of external sources. This will open up the site with a new access road, bridge and spine road and will include enabling works, such as site clearance, demolitions, utility diversions and drainage.

Meanwhile, campaign group York Central Action claims that many questions about the development “remain outstanding".

It said until these concerns are addressed the design is “still undecided".

The infrastructure fund will deliver a new park, create public squares and create a new western railway station entrance. Pedestrian and cycle routes through the site will integrate with an upgraded public transport hub around the railway station.

The proposed budget is funded by a combination of external grants, contributions, previously agreed approvals and also council borrowing. The report proposes that the council borrows £35 million. The loan would be financed from future retained business rates as part of the Enterprise Zone, plus in early years the use of the Venture Fund.

York Central Action said traffic around the York Central site was a particular concern.

A spokesperson said: “In particular Highways England has expressed serious doubts about the traffic management and impact on the wider city, and has ordered that a planning decision be postponed until its concerns on transport infrastructure are answered. Meanwhile, the impact of closing Leeman Road, to allow an internal link for the National Rail Museum, is still contentious, and the necessary road traffic order is far from guaranteed.

“Many other organisations have also expressed dissatisfaction with the outline plans, including the Environment Agency, which has raised concerns about flood risks, and Historic England, which has objected to the lack of advance research to ensure minimal damage to the heritage. As a result, York Central Action argues that it would be irresponsible to commit to this infrastructure investment until these numerous issues are resolved.”