YORK'S Roman Quarter proposals have been branded financially unviable by property experts - but the findings have been strongly disputed by developers behind the scheme.

The massive redevelopment would involve the demolition of Northern House, Rougier House and Society Bar and Lounge in Rougier Street and the construction of a Roman museum called Eboracum, an 88-room aparthotel, 153 new apartments and office space.

City of York Council commissioned Stannybrook Property Consultants Ltd to conduct an independent financial viability assessment review (FAVR) on the development ahead of planners considering a revised planning application, after an initial application was thrown out last year.

A report by Stannybrook says the FVAR has demonstrated that viability is a material consideration in this instance,adding: "It is clear that the proposed development, even without any Section 106 contributions, is financially unviable to deliver."

It says Stannybrook prepared the FVAR in accordance with National Planning Policy Framework and Royal Institution of Chartered Surveyors viability guidance.

Former Independent councillor and conservation campaigner Johnny Hayes said he was 'shocked' by the conclusions.

"The question is, if this development is significantly unviable according to the viability report, then what is going to happen now?" he said.

"This is a City of York Council commissioned viability assessment and an important document. Can we conclude that the plans for the Roman Quarter Development with its 153 apartments,  88 bedroom hotel and large amount of office space is going to be scrapped?" 

He said a developer would normally contribute a 'very considerable amount' towards affordable housing and other contributions to benefit the community through a Section 106 agreement, but the report had said the scheme would be unviable even without such contributions.

But Paul Ellis, from developers North Star, insisted Roman Quarter was viable for North Star because, unlike other ‘traditional’ shorter term projects, it was taking a long term, 50 year view and retaining the property.

“Traditional development viability reports are based on shorter term development exits – ie the sale of the property upon completion," he said.

"Whereas on this project York Archaeological Trust are taking a long term lease and we have decided to retain the property for the long term.

“Remember we have owned this property now for over five years and committed over £1 million on planning. We are very much committed to delivery and retention and to the future of York.”

The redevelopment has already been slammed by the Council for British Archaeology, which claims the heritage visitor attraction is being used “as leverage to overdevelop the site as a whole,” but the York Archaeological Trust has accused the council of making misleading arguments and claimed the scheme provided an exceptional opportunity to deliver enormous public benefits.'