Entrance to gallery could be lined with new homes

The authority has agreed to sell the land in order to narrow the entrance to Firstsite, which is due to open in September.

Developer Scott Properties has agreed to pay £155,000 and carry out some of the “public realm” work aimed at making the area around the building look more attractive.

The move will accelerate the Colchester firm’s efforts to transform neighbouring East Hill House, one of the town’s most historic buildings, into a fine dining restaurant with 13 rooms to let.

A report by Colchester Council reveals Scott Properties will submit a planning application in the next six months to convert the Grade I listed house and build seven townhouses alongside the gallery entrance.

Paul Smith, councillor responsible for resources, said: “It’s a good deal for Colchester, a good deal for the developers and it’s at no cost to the public purse.”

In 2008, Scott Properties bought East Hill House for nearly £500,000 from Essex County Council, which had previously used it.

Colchester historian Andrew Phillips described the building as “the grandest house in Colchester” which had largely retained its grand interior.

He said: “A restaurant is quite a good deal. It’s one of the few Regency buildings in Colchester which has still got its interior in good nick.”

The decision will continue the ongoing regeneration of the St Botolph’s area of Colchester, and comes after a developer won planning permission last month to turn the former Grey Friars college, in High Street, into a boutique hotel.

Howard Davies, Colchester Council’s town centre project manager, said: “The developers are obviously believing in what we’re trying to achieve down there.

“I think it can be viewed as a major success.”

Essex County Council, which part owns the land, has agreed to divert its value in the site towards creating the new access road.

Scott Properties director Martin Scott was unavailable for comment.