Developer HDG Mansur has expressed "huge relief" over the successful renegotiation of its Section 106 agreement with Bristol City Council on the £255m regeneration of Finzels Reach, the high-profile former Courage Brewery site.
The moves means the company, which is struggling to make the scheme viable, has been freed from obligations totalling £4.5m to build 37 affordable housing units as well as investment in local schools, roads and public art. At 1m sq ft, the site alongside the Floating Harbour and between Castle Street and Victoria Street in the city centre is one of the largest ever regeneration projects in Bristol and among the most ambitious underway in the UK.
When complete it will include 384 apartments, offices, shops, restaurants and a micro-brewery. It was meant to be finished next year under an agreement struck with the city council in 2007 but although the first residents will move in very shortly the overall site – described as the largest speculative urban redevelopment outside of London and the South East – will not now be complete until 2017.
The developers will still contribute around £9m to local infrastructure including the construction 55 affordable housing units and the stylish new Mobius footbridge that will cross the water connecting Finzels Reach to Castle Park. But the city council's development control committee agreed to the HDG Mansur's requests to reduce its commitments only very reluctantly on Wednesday.
One committee member compared the company's stance to putting a gun to his head – although a source denies Mansur made any kind of ultimatum about pulling out of the project. The development control committee eventually agreed to Mansur's request but with the "strong recommendation" that the developer meets with the executive member for housing to look at other options.
Welcoming this outcome, Mansur managing director Michael Baker said: "The decision acknowledges the very significant changes to the economic climate that have taken place since the original 106 was agreed in 2007 and the resulting contribution that we are able to make to the community."
He added: "HDG Mansur made a serious commitment to Bristol when it decided to build Finzels Reach on a speculative basis and has delivered the first phase of what will be a vibrant and much needed development in the hear of the city. The first residents will move into their apartments next week when the first phase reaches practical completion.
"The commercial space, which will be fitted out and ready for occupation early next year, will be of the highest standard and will offer a standard of finish that the city can be proud of.
"Having renegotiated our 106 commitments we are now able to look forward to the next phases of Finzels Reach which will send out a very positive message about investment in the city."
