Developer unveils £650m scheme for Leeds

The development, which covers a 1m sq ft area in the city centre, includes anchor stores for John Lewis and Marks & Spencer and about 130 stores and restaurants.

It aims to revive part of the city between Vicar Lane, Eastgate, George Street and Harewood Street.

The scheme, which will be funded through 650m of private investment, is smaller than the previous 800m project. Developer Hammerson has invested 80m to date.

A new arcade will be created, providing retail space for

small and medium-sized businesses.

The development will include the restoration of the Grade II listed Templar House, set around a new public square which could be used for city events, alongside improvements to the historic Templar House Hotel.

The plans will also create 2,500 new car-parking spaces.

The 300-600 residential units which were part of the old scheme have been scrapped.

Andrew Hilston, project director for Hammerson, said: "We have spent the last two years working with Leeds City Council and key stakeholders trying to redesign and improve Eastgate Quarters.

"Eastgate, along with the Leeds Arena and Trinity Leeds, provides a real opportunity to move the city up the retail rankings and give it the offer it really deserves as a regional capital."

The redeveloped site will be divided into three main areas – the 'aspirational' area around Harewood Street, the cafs and restaurants around the new St John's Square,and the 'best of British high street' in the new arcade, which will be built around Templar Street.

The position of John Lewis has changed in the new design from the east of Bridge Street to opposite the police station on Millgarth Street. Hammerson said it no longer intends to use the plot of land on which John Lewis would have been previously built.

Mr Hilston said: "We think this is an improved scheme and integrates even better with the city centre.

"We are transforming a huge area of brownfield land that has been derelict for 40 years with 650m of private sector investment, creating 4,000 permanent jobs in catering, retail and hospitality."

"During the three years of construction, we would expect to employ 25,000 people as we did when we built Cabot Circus, in Bristol."

Construction was initially scheduled for completion in 2012, but work stalled because of the recession. There is no completion date at the moment but Hammerson said it's likely that the scheme will need to be at least 25 per cent pre-let to tenants before work starts.

The plans have come under fire from members of the Chinese community who say that the unofficial Chinatown could be wiped out by the development.

A number of businesses, including restaurants, shops and herbalists, in Saxon Hawke House on Templar Lane, moved out after developer Hammerson bought the building.

Some businesses still in the area say the development could leave them in financial ruin.

The council gained a Compulsory Purchase Order (CPO) last summer, enabling the developer to buy land for the project.

Mr Hilston said: "I have invited everyone affected by the CPO to attend the public consultation because we want their feedback. I can understand their reluctance to what is happening and we are sympathetic."

Hammerson is hoping to submit the revised scheme for outline planning permission by the end of the year after taking into account the feedback from the consultation.

The public exhibition for Eastgate Quarters is being held in the Cross Arcade, Victoria Quarter tomorrow from 9am-7pm and Saturday from 10am-4pm.

Going green

The Eastgate Quarters project is designed to ensure the development is energy-efficient.

Hammerson's green leases will be introduced, with tenants working towards energy efficiency, waste reduction, and greener shop fits.

The scheme is also set to include a low-carbon energy centre, which

would have the potential to deliver energy to the development and surrounding residents and businesses through renewable energy sources and a combined cooling heat and power process.