Durham to acquire Milburngate
Following years of delays, the council has agreed to buy the development and aims to turn it into a leisure and hospitality venue.
The site of the former passport offices is located in the city centre and links it to the future Durham Innovation District.
Acquiring the site and developing it could cost an estimated £55m.
The development was a joint venture between Arlington Real Estate and Richardson, and was supposed to be 150 BTR apartments, offices, and hospitality.
Due to open in 2022, the main contractor on the site Tolent went into administration in 2023.
Cllr Elizabeth Scott, cabinet member for economy and partnerships, said the authority was “very aware of the economic significance of Milburngate to the city and wider county.”