AN historic deal has been struck for a site earmarked for controversial £40 million plans.

Essex County Council has revealed it wants to buy the land off Queen Street, Colchester, which has been the subject of hotly-opposed student flats and hotel blueprints.

Plans for 336 student rooms, a Travelodge and public open space were submitted in late 2018, but County Hall put the brakes on the project due to a covenant it holds over the town’s former bus station at the site, protecting it from development.

Colchester Council approached County Hall in March seeking to sell the site to developer Alumno, but the former is compelled to give the latter first refusal under the covenant.

Gazette:

Essex County Council has now stated it will purchase the site and factor it into a masterplan it is drawing up for the economic regeneration of Colchester’s town centre.

The vision builds on several regeneration projects and ongoing investment being made in the town.

The aim of the masterplan is to celebrate Colchester’s heritage, visitor attractions and support the High Street to recover and thrive following the pandemic, County Hall says.

Lesley Wagland, Essex County Council’s economic renewal infrastructure and planning boss, said: “This will help to embed the delivery of the £18 million Town Deal award from the Government into the town centre, creating new public spaces for residents to enjoy which will support the local economy.

Gazette:

“This decision is the best way for Essex County Council to support the development of the masterplan.

“It will allow the master planning process to determine the best future use for this key site as we work together to shape and develop Colchester’s historic town centre to be fit for the 21st century.”

The announcement doesn’t mean the Alumno plans are gone for good, however, with a document released by County Hall stating: “It may also be the masterplan concludes the Alumno scheme is the best way forward”.

Essex County Council’s decision will now trigger a process where the Government’s Valuation Office Agency will discuss terms, including price, with senior county council officers.