Durham City named as next North East Mayoral Development Zone

The North East Combined Authority has pledged £27m to progress delivery at the Aykley Heads innovation district, spearheaded by the council, Muse, and Durham University.

A collaboration agreement between all three partners was signed at the end of last year. Endorsed and approved by the North East CA cabinet on 17 March, this funding will boost high-tech workspaces intended to create a major new employment site in the city.

Aykley Heads was designed by Ryder Architecture and is a key part of the Durham Innovation District in the heart of the historic city.

In total, the Aykley Heads site amounts to around 37 acres and has consent for 400,000 sq ft of commercial space.

The Durham Innovation District as a whole tallies up at around 153 acres in and around key assets, including Durham University Business School.

Located close to Durham’s main rail station and overlooking the World Heritage Site, the development will replace the city’s County Hall.

This latest MDZ mirrors those adopted in Newcastle-Gateshead, which will look into how to back schemes on both side of the Tyne such as Forth Yards and Gateshead Quays, and Sunderland, which is focused on the Riverside Sunderland regeneration.

Both of those MDZs have, however, only been granted smaller sums for initial exploration into how to take schemes forward, with Newcastle-Gateshead awarded an initial £1m and Sunderland receiving £300,000 from NECA, to be matched by the council.

North East Mayor Kim McGuinness, said: “I want to give Durham a major boost, establishing a new home for innovation right at the heart of the city which will create more jobs and a vibrant place where people and businesses can thrive.

“Our people are our biggest asset, and we want to keep more of our emerging talent within the North East to give local people access to the best opportunities.

“I want to ensure that graduates in the region can see their future here – investing, working and living in our amazing cities and villages.

“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.

“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 focussed on innovation and regeneration of the city including the area in and around County Hall.”

Raife Gale, senior development manager at Muse, said: “This announcement from North East CA is another milestone in the transformation of Aykley Heads and the creation of a new innovation district for Durham.

“Establishing a Mayoral Development Zone not only unlocks funding to accelerate delivery of this landmark place, which will feature world-class innovation workspace and social spaces, but also enables North East CA to work with Government to secure a Business Rate retention, providing a long-term tool to support future development and regeneration.

“Sitting at the heart of the East Coast Mainline innovation corridor, ourselves and our partners at Durham County Council and Durham University believe Aykley Heads will support both the regional economy and the national innovation network.

“Together, we are creating a vibrant and exciting new destination for people to work and enjoy themselves for years to come.

“The support from North East CA, through the creation of a new Mayoral Development Zone, is testament to our shared vision and the scale of opportunity we have to deliver long-term benefits for the whole of the North East.”

Cllr Andrew Husband, leader of Durham County Council said: “Aykley Heads is already a great place to do business, as evidenced by the top class organisations already based here; boasting excellent transport links and close proximity to our World Heritage Site, Durham Castle and Cathedral. What’s more, it will soon be a place to enjoy culture, when our new attraction, The Light, opens.

“We’re getting ready to leave County Hall to pave the way for land at Aykley Heads to be developed, providing the opportunity for thousands of new quality jobs to be created. This funding and the creation of the Mayoral Development Zone can only help accelerate our exciting vision for the site.”

Professor Karen O’Brien, vice-chancellor, Durham University, said: “Durham University is committed to being a key partner in driving innovation and growth in our city and region.

“The Durham Mayoral Development Zone and the accompanying financial investment will drive further economic, social and cultural development in our city and region, increasing the attractiveness of Durham as a destination for work, study and living.”