Council backs sale of Holland & Barrett Coney Street store

The sale of 25-27 Coney Steet, home to health store Holland & Barrett, to developers Helmsley Group comes ahead of their regeneration of that part of the city centre.

Cllr Katie Lomas, the council’s Labour major projects spokesperson, said officials had skilfully negotiated the best deal for residents as they did with all commercial property.

But Cllr Paula Widdowson, deputy leader of the Liberal Democrat opposition, said the administration were surrendering what leverage the council had in the redevelopment of Coney Street for little in return.

The decision on Tuesday, March 3 to sell the shop comes as the council’s executive backed the authority’s Asset Management Strategy for the next five years.

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It sets out what the council plans to do with its property estate which is worth around £396 million and brings in about £6.9 million-a-year in income.

A council report stated the authority aimed to use its roughly 1,300 assets to produce positive outcomes for communities, generate income and reduce costs.

Those assets include the council’s West Offices headquarters, the Hazel Court tip and logistics hub, community buildings and land earmarked for new homes.

The council bought 25-27, Coney Street in 2019 to try and have influence over its redevelopment.

Plans approved in 2024 are set to see the street and the area behind it overlooking the River Ouse redeveloped, with work due to begin later this year.

A council report stated the influence the council had due to owning the shop helped get a riverside path included in the scheme.

The deal struck with Helmsley is set to see the newly-refurbished space let to the council for no rent.

It could then be offered to a commercial tenant by the council.

Other plans in the strategy include leasing land next to the LNER Community Stadium to Deep Green, the company behind plans to build a data centre there.

The firm plans to use excess energy generated by the facility to heat the stadium complex’s swimming pool.

Pop-up food and drink venue Spark’s lease has also been renewed for another five years as part of the strategy.

York Canoe Club is set to lease part of Rowntree Park’s maintenance depot for 15 years.

The club has been saving up for a permanent home which it has lacked for the last 20 years.

Choose 2, a social enterprise working with disabled children and adults, is set to lease a modular building in Hull Road Park where it has run a café since 2017.

A community garden could be set to be created in Strensall in 750sqm of land off York Road leased to the village’s parish council for a peppercorn rent.

Labour major projects executive member Cllr Lomas said the way the council was running buildings such as West Offices, where space is rented to other organisations, helped to cover costs.

She added deals with community groups allowed buildings to be put to use by residents rather than being sold off for a profit and support places like Rowntree Park.

Liberal Democrat deputy leader Cllr Widdowson said her party increased the council’s income while in power until 2023 but earnings had since stagnated.

She added the sale of 25-27, Coney Street was a poor deal, but council officers denied it would make a loss.