Corporate Scrutiny

1 October 2025

Report of the Director of City Development

Major Projects – Castle & Eye Project

Summary

1. The purpose of this report is to provide Scrutiny with an update on the Castle and Eye project including funding status and delivery approach and preparedness.

2. The report asks Scrutiny to consider and support the Executive in the next steps for the delivery of each of the scheme as follows:

a) Noting the design development, planning progress and cost plan iteration of the Castle & Eye scheme, and works now also proposed to Coppergate Carpark to mitigate parking, access and Council income impacts.

b) Establishing the project delivery funding package and approach, and agreeing delegations for management of the same. Approving procurement activity commencing, and associated delegations (letting of contract subject to full funding confirmation).

c) Agreeing the permanent closure of Castle Carpark to non-blue badge holders as part of this.

Background

3. The Castle & Eye scheme offers a major opportunity to transform and reimagine a prominent and important part of York City Centre,

4. In November 2023, the Executive approved an approach to the Castle & Eye Scheme to reframe as a viable and deliverable proposition within funding envelopes as well as making key changes to the project including retention of blue badge parking and provision of flexible greenspace which includes children’s play provision. The changes were made to ensure the continued delivery of positive outcomes for the regeneration of this part of the city, in accordance with both the original master plan principles, and the approved Council Plan and “Our City Centre” Vision. They also ensure that the scheme delivers against the three key city strategies (Climate Change, Economy, Health, and Wellbeing) that were approved in December 2022.

5. Since this time, the scheme has been progressed in accordance with these approvals. This progress has included further design work and engagement with key stakeholders and the public to shape and influence the revised scheme. Cost planning and value engineering activity has taken place as part of this to achieve a deliverable scheme, alongside technical assessment work to prepare business case and planning submissions, and in July, revised planning submissions were made.

6. This report updates on the current status of the project, and summarises the next steps and executive decisions required to progress to delivery. Corporate Scrutiny Committee are invited to comment and make recommendations on the proposed approach.

Update and Next Steps

Project Development

7. In response to key project changes agreed in November 2023, further technical and design development work has been undertaken, also drawing on the existing wealth of engagement feedback to date, and work already undertaken, to develop revised concept design plans. These were tested with key stakeholders and the public between May and September 2024

8. Working with My Future York, a formal public consultation ran from the 15 August until the 20 September 2024. The consultation used a number of vehicles to engage communities and develop proposals. The Castle Gateway Advisory group (a group of external stakeholders in the city including the Civic Trust, York Museums Trust, York Bid, Make it York, Environment Agency, English Heritage, Historic England, York Crown Court), as well as other key stakeholders including the Bid Board, Liberal Jewish Community, the York Access Forum and the owners of the Cooperate Centre, were also consulted.

9. This extensive engagement received widespread positive response and helped to develop the design proposals further. Feedback is summarised on the My Castle Gateway Blog: https://mycastlegateway.org/2024/11/21/revised-concept-proposals-for-castle-and-eye-of-york-summer-2024-responses-via-all-engagement-routes/

10. Shaped by this process, revised plans were submitted to the pending planning application on 4^th July 2025, and statutory determination is now underway. Key changes between the original scheme and 2025 resubmission are illustrated in summary form at Appendix 1.

Cost and Funding Update

11. As an intrinsic part of the design development work, value engineering and cost plan iteration work was undertaken by consultants Turner and Townsend to ensure that, in line with the 2023 Executive decision, the scheme is more capable of delivery within funding parameters. The cost plan continues to be iterated and developed as the scheme progresses through planning, and in preparation for tendering works. The cost plan currently indicates that the Castle & Eye scheme can be delivered at a cost of £7.634m plus potential Hostile Vehicle Measures (HVM) measures of between £0.4-0.9m, and project costs of £1.2m, giving a total cost envelope of between £9.234m and £9.734m. This is a significant reduction from the previously £15m scheme (in 2022) but retains the majority of the scope and quality aspirations from the original Masterplan of which this project form's part.

12. To help mitigate car parking impacts and loss of council income resulting from the planned changes, work has also been undertaken to explore improvements that could be made to the existing Coppergate Carpark, to make it a more usable and attractive proposition to car drivers in this part of the city, and best utilise its current residual capacity. These capital works include the provision of physical infrastructure to make the carpark accessible 24 hours (including VNPR, CCTV etc), as well as improved signage/ digital information and cosmetic improvements. The capital cost of these works is currently estimated at £200k, in addition to the costs identified at paragraph 11 above, and taking the whole project outturn costs to between £9.434 and £9.934m

13. Previous executive decisions on the project have also included the commitment for the authority to invest alongside partners West Yorkshire Combined Authority (WYCA) to realise the regeneration scheme. A capital contribution of £3.911m has been made available to the project, alongside £4.523m from WYCA. WYCA will need to give confirmation that the use of the funding remains eligible – a positive dialogue has started in this respect. Spend to date in progressing the scheme against these allocations leaves a current residual budget of £8.434m.

14. With total scheme costs (including Coppergate Carpark works) of £9.434 to £9.934m, this results in an additional borrowing or funding requirement of £1-1.5m for the project to be deliverable against current funding availability. This cost pressure will be managed within the existing Capital Programme or through securing additional external funding support for the scheme.

Technical Assessment

15. The re-purposing of Castle car park will bring significant benefits to the city: retaining and improving blue badge accessibility close to the city, providing a central amenity and green space that will benefit families’ health and wellbeing, and increasing connectivity and promote sustainable transport modes. The proposals represent a more socially equitable and ‘place-based’ approach to use of prime City Centre land and dramatically improve the setting for the nationally important historic buildings and heritage assets in the area. The scheme will also act as a catalyst for the wider Castle Gateway masterplan area, with projects brought forward for delivery as funding and viability permit.

16. As well as these significant benefits, the works will remove non blue-badge parking facilities close to the centre, with impacts on Council revenue and travel movements. Analysis reveals that these impacts are manageable though, with significant capacity in other existing facilities, and in scenarios where Castle Carpark is retained, a degree of reduction in parking levels and capital expenditure is still required.

17. Following previous executive approvals, a formal decision to close the Castle Car Park is required before further work on procuring and delivering the scheme can commence. As stated elsewhere in this report, the closure of Castle Car Park will result in an estimated loss of revenue to the Council - an estimated net sum of £0.5m per year is being taken forward for budget setting purposes, reflecting a conservative approach.

18. This is informed by further technical assessment work undertaken around car parking in the local area and summarised at appendix 2. The work gives confidence around the impact of the proposals, with residual capacity identified in other local parking facilities. The estimated revenue loss is calculated taking into account the potential displacement of car parking to alternative facilities including other Council carparks, modal shift, and new parking prices.

19. Car parking prices in the city have also recently increased, and it is predicted that this will see a general reduction in city centre car park demand and usage, with users opting for more sustainable/cheaper modes, such as park and ride, cycling or walking. These alternative measures link into the longer-term ambition of the Council to reduce traffic within the city centre as set out in the Local Transport Strategy, Climate Change Strategy and which will also be progressed through the Transport Movement and Place plan. Options to use park and ride services for overnight stays are in the process of being explored through the Bus Service Improvement Plan, and these will offer residents and visitors a more cost effective and sustainable way of staying in the city without the need to park within the city centre – another option that currently doesn’t exist, and a way of accommodating displaced demand from Castle Carpark.

20. The tables below illustrate the existing number of parking spaces within the Castle Gateway car parks. It includes the proposed number of car parking spaces following the closure of the Castle Car Park in in accordance with the decision at the November 2023 Executive.

Existing Parking Provision
Car Park	Standard Spaces	Blue Badge Spaces	Electric spaces	Total
Coppergate	248	28*	0	276
St Georges Field	260	6	0	266
Castle car park	268	30	0	298
Total	776	64*	0	840

Proposed Parking Provision
Car Park	Standard Spaces	Blue Badge Spaces	Electric spaces	Total
Coppergate	248	28*	0	276
St Georges Field	260	6	0	266
Castle car park	0	30	3	33
Total	776	64*	0	575

* Including 10 shopmobility

21. The closure of Castle car park would lead to a loss of 265 parking spaces within the Castle Gateway Scheme. Through analysis of parking data there is the potential to accommodate much of this within the Coppergate car park which runs below occupancy for the majority of the year. To optimise use of this residual capacity, a variety of measures are proposed to be employed, including measures to allow 24hr parking, better signage to the car parks, extended opening hours and cosmetic improvements. The works to the Coppergate car park are estimated to cost £200k.

22. Concerns have previously been raised around the potential impact of loss of Castle car park on City Centre businesses. Given the evidence above and in appendix 2, and the additional works proposed - including to Coppergate Carpark, and overnight Park & Ride services, it is considered that impacts on footfall and businesses are capable of being adequately mitigated. In addition, options to improve the quality and capacity of Surface Carparking at St Georges Field are currently being explored and will form part of the forthcoming Movement and Place Strategy, which will consider works in a strategic city wide context, and as part of a joined up approach to strategic transport across all modes.

23. As already noted, and summarised in appendix 2, any alternative decision to retain Castle Carpark would also result in a need for significant capital investment of upwards of £750k due to its poor condition alongside a significant reduction in car parking spaces to ensure that the new layout meets current carparking standards.

Consultation

24. The Castle Gateway Masterplan has been shaped through extensive stakeholder and public engagement on both the masterplan and subsequent sub-projects in the form of My Castle Gateway. Over 8,500 comments have been recorded to date. https://www.flickr.com/photos/149815510@N05/tags

25. The last intensive period of engagement related to the proposed revised concepts designs for the public realm space at Castle and the Eye of York. This ran over summer 2024 and included a programme of activities to help inform the final revised design which was submitted to planning on the 4 July 2025. Full details are set out in the Statement of Community Involvement which accompanies the planning application.

26. The redesign of the space has drawn on the wealth of engagement that already exists and the latest engagement. The Council remain committed to ongoing consultation on the Castle Gateway project.

Options

27. Option 1 - Castle & Eye of York Scheme Delivery – is to approve the recommendations in the report which clearly set out the next steps for the timely delivery of the Castle & Eye of York proposal

28. Option 2 – Castle Gateway Delivery - to undertake more comprehensive delivery across a wider portion of the Castle Gateway Masterplan area, or a less light touch treatment of the Castle & Eye of York area. This would increase capital cost, requiring additional borrowing or the seeking of additional external grant funding (source not currently clear), also delaying the scheme and introducing inflationary pressure.

29. Option 3 – Retain Castle car park - do not approve the closure of Castle car park due to revenue loss for now, therefore halting the delivery of the Castle & Eye of York scheme and wider masterplan. It should be noted that this would need to include a cost of £750k to resurface the castle car park to current standards and would result in a loss of a significant proportion of spaces with commensurate impact on revenue from this car park.

Analysis

30. Option 1 offers a clear way forward following the most recent decisions at the Executive in November 2023, reflects the Council Plan and Our City Centre Vision; as well as responding to the reality that there is significantly less funding available to deliver the Castle Gateway projects. The recommendations allow the regeneration of the area to progress, see the projects aligning to reflect the Council Plan and deliver the centre of the masterplan at a more affordable cost.

Unlocking the regeneration of the Castle Gateway has always presented significant challenges to overcome. The previously agreed delivery approach which breaks the inter dependencies between the Schemes and through careful redesigns, reduces capital costs to secure early delivery has been progressed and can be achieved. Clearly the loss of car parking and its revenue needs to be carefully considered, whilst considering the wider benefits of regenerating the Castle gateway, potential mitigations, and other aims and ambitious of the city as set out in the Local Transport Plan.

31. Option 2 incurs additional expenditure and delay, with no clear route to delivery at this point in time, and risks jeopardising the near-term realisation of tangible scheme benefits and transformation which are achievable in option 1

32. Option 3 undermines our strategic approach to transforming this area of the city to benefit residents and make best use of its prime location for the benefit of all. The area would still require significant capital investment, and our strategic transport objectives would be undermined through the promotion of unsustainable modes. Significant levels of external grant funding would also need to be handed back. The Council’s revenue position would however be protected.

Council Plan

33. The Castle Gateway and EoY project will contribute to the delivery of the four core ‘EACH’ commitments in the Council Plan 2023-27 – One City, for all by:

1. Equalities and Human Rights – by re-purposing the Castle car park and redesigning the proposals, blue badge parking will be retained close to the city to aid accessibility, also aligning with the emerging Local Transport Strategy’s Policy Focus Area 1 - shaping a city centre that is accessible for all.

2. Affordability – Creating high quality and free to access amenity and play space in a highly accessible location for residents.

3. Climate & Environment - Providing a new green space within the city centre will help enhance biodiversity, also aiding urban cooling for climate resilience. Detailed Ecological, Green and Blue infrastructure technical work has shaped the development of the planning proposal. The scheme will also support active and sustainable travel through provision of high quality connectivity and public realm infrastructure. The public realm improvements will consider climate adaptions features for example passive shading/cooling, rest areas and water refill stations.

4. Health and Wellbeing – by creating a free amenity and play space for families to encourage healthier lifestyles, coupled with improved connectivity and travel opportunities across theDelivering York Station Gateway and the Outer Ring Road are key actions within the Council Plan 2023-2027. Both schemes contribute to the council plan vision and will establish the conditions that would make York a healthier, fairer, more affordable, more sustainable and more accessible place, creating more regional opportunities to help today’s residents and benefit future generations. The connection of rail and outer ring road to the region will enable economic growth aligned to the emerging MCA Local Growth Plan.

34. The proposals will also contribute to the delivery of the ‘Our City Centre’ vision (in particular themes 1 – family friendly and affordable city centre, 2 – attractive, active and healthy centre, and 4 embracing our riversides), the Local Plan (Policy SS5 – Cadtle Gateway), and the Economy, Health & Wellbeing, and Climate Change 10-year strategies.

Organisational Impact and Implications

Financial

35. Current spend on Castle and Eye of York to 31.03.2025 is £1.55m, with the cost of further work from 01.04.2025 estimated to be £9.934m, detail shown below.

Estimated spend from 01.04.2025

£'000

Cost Plan

7,234

Estimated Inflation, based on June 2026 start date (*)

400

Design, delivery and project management costs

1,200

Hostile Vehicle Mitigation (range £400k-£900k)

900

Works to Coppergate Car Park

200

TOTAL estimated spend from 01.04.2025

9,934

(*) This start date is subject to consent and procurement approval

36. The recommendations to executive are to use Current Funding available for the project as follows

Available Funds from 01.04.2025

£'000

WYCA grant (**)

4,523

CYC approvals

3,911

TOTAL funding available from 01.04.2025

8,434

Shortfall in Funding

1,500

37. There is currently no external source for the funding shortfall. It will be necessary to identify the schemes in the Capital programme that will be de-prioritised to transfer funding to the Castle Gateway scheme This will need approval by Executive

38. (**) WYCA will need to give confirmation that the use of their £4.523m budget is eligible, i.e. covers only transport costs. Discussions with WYCA are currently taking place to confirm the extent of transport costs included the Castle and Eye of York project. Use of the WYCA funding may be subject to the opportunity to swap up to £3.474m of approved CYC funding from the YORR project with this WYCA transport funding, see below

£'000

WYCA Funding identified for Castle Gateway projects

4,523

CYC approved YORR Funding

3,474

Minimum Transport related spend on Castle and Eye of York project

1,049

39. Car Parking Revenue. The decision to confirm the re-purposing of Castle car park will have the impact of reducing car parking income across the council estate. In 2024/25 £1.8m was generated at the car park and c £2m is forecast in 2025/26. There is significant capacity across neighbouring car parks (notably Coppergate and St George’s Field) which would allow the majority of car park users to relocate to other council car parks. There are relatively few days (Saturdays and some school holiday / event days) where there would not be surplus spaces. Further analysis would be required to be undertaken once the impact of increased prices have been modelled through the year as there are fewer transactions and therefore increased capacity. However whilst the council does have capacity to accept dispersed parking there is no guarantee that drivers will move to other CYC car parks as opposed to private sector car parks.

40. If Executive do agree to the closure of Castle car Park, this decision will need to be reflected in the budget approval process and the income expectation will need to be reduced accordingly. Prior to further analysis it is recommended that the impact should be assumed for the purposes of budget setting at £500k ie 25% of revenue lost to the council. There are opportunities to minimise this income loss as set out in the report, and the assessment of £90k loss is noted in Appendix 2. It is currently assumed that impacts would be felt from financial year 2027/28.

Human Resources (HR)

41. There are no HR implications contained within this report.

Legal

42. In implementing the proposed Castle car park and Eye of York scheme, along with the proposed improvements to Coppergate car park, any proposed works and services, including those funded by the grant funding identified in this report, will need to be commissioned via a compliant procurement process under the Procurement Act 2023 and the council’s Contract Procedure Rules. Any associated contracts will need to ensure that relevant terms and conditions under the Grant Agreement with WYCA are passed on accordingly

43. Regarding the closure of Castle car park, pursuant to sections 35 and 46A of the Road Traffic Regulation Act (RTRA) 1984, the Council has statutory powers to charge for off-street parking places. The proposed car park closure will necessitate a change to the Off Street Parking Order. In accordance with the Local Authorities' Traffic Orders (Procedure) (England and Wales) Regulations 1996 the Council is required to publish a notice of variation setting out the changes in a local newspaper for 21 days. The notice of variation is also required to be placed in prominent positions in the carpark until the new charges come into force. Subject to no objections being received, the car park closure will be reflected in the Off-Street Parking Order by way of formal variation.

Procurement

44. Procurement will be a main tool used to deliver the priorities and projects set out within this report. All works and/or services must be procured via a compliant, open, transparent, and fair process in accordance with the council’s Contract Procedure Rules and where applicable, the Procurement Act 2023. Creative and innovative ways of procuring will be explored to ensure elements of the council plan are captured within the procurements and to maximise social value and maximise public benefit. Further advice regarding the procurement process and development of additional procurement strategies must be sought from the Commercial Procurement team.

Health and Wellbeing

45. These proposals align with a number of separate public health goals, outlined in the Council Plan 2023-7 and the Health and Wellbeing Strategy 2022-32. These include the aspirations to increase physical activity by enabling active transport routes, reduce car dependency and encourage walking, cycling and wheeling; improve air quality through similar means, invest in quality of life for children and young people by including green space and play areas, and improve mental health and wellbeing though access to green space.

46. The detailed design of this space will benefit from reflecting principles in the emerging Healthy Spaces Supplementary Planning Document, for instance considering healthy streets principles which enhance liveability, such as shade and shelter, providing things to see and do, incorporating places to stop and rest, reducing noise, prioritising public safety particularly for women and girls, and with safe places to cross.

47. The ongoing management of the area as a public space would benefit from considering further public health gains the scheme could achieve by reducing the impact of the three biggest public health harms – tobacco, alcohol, and unhealthy food. This might include designating the space ‘smokefree’, considering the suitability of alcohol sales especially in areas where children and young people will be, and taking measures to ensure the food environment is free from junk food marketing and enables people to access healthy food options

Environment and Climate action

48. The proposals set out within this Report are in line with the Council’s Plans and support the Climate Change Strategy 2022- 2032. York's Climate Change Strategy identifies that 28% of emissions are from transport and that we should be seeking to reduce overall travel miles and increase uptake of active travel and public transport. The detailed Ecological Green and Blue infrastructure technical work which shaped the development of the proposal demonstrates the alignment with the transport objectives of the Local Transport Strategy approved at Executive in October in that the proposals support an inclusive, accessible, affordable and sustainable city, to contribute to both the Climate Change Strategy and the Economic Growth Strategy, improve health and wellbeing through healthy place shaping, improve the local environment by reducing air pollution and noise and protect the city’s heritage and enhance public spaces.

Affordability

49. York Station Gateway will attract tourism, potentially grow and maintain new and existing businesses and support the creation of new jobs.

Equalities and Human Rights

50. A full Equalities Impact Assessment has been completed and can be found at Appendix 3. It highlights the need for ongoing dialogue with groups who may be impacted by the schemes and there have already been some changes made to designs as a result of this engagement taking place.

Data Protection and Privacy

51. The data protection impact assessment (DPIAs) screening questions were completed for the recommendations and options in this report and as there is no personal, special categories or criminal offence data being processed to set these out, there is no requirement to complete a DPIA at this time. However, following the approved recommendations and options from this report, a DPIA will be completed.

Communications

52. The communications team works closely with colleagues around the Castle Gateway project. This has involved supporting the engagement work and any project updates. Progressing the Castle Gateway Scheme will need continued communications support to deliver a comprehensive strategy covering before, during and after any potential construction work. Should Castle car park close, as well as project updates significant work will be required to forewarn people and to highlight alternative travel options to York city centre, including promoting sustainable travel and alternative car parking options.

Economy

53. York city centre is home to around a quarter of York’s businesses and is a key attractor of inward investment and business growth. The measures set out in this report support the delivery of the York Economic Strategy 2022-2032 and the involvement of the York Economic Partnership in shaping future delivery of the Our City Centre Vision will ensure continued close alignment with city and business priorities.

Crime and Disorder

54. The Planning permission will be followed to ensure that all secure by Design elements are implemented.

Property

55. The City Council holds a long lease of the Coppergate Centre car park and proposed improvement works would be carried out in consultation with the landlord of the facility.

Risk Management

56. The principal risks associated with the Castle and Eye of York project at this stage are cost and contract management, reputational, non-delivery, and loss of revenue related. The phasing of the project in the manner proposed in this report is in direct response to some of these risks, so that the regeneration of this area can progress and is not further stalled.

57. The risks associated with cost and contract management are potentially significant but are mitigated and managed by the extensive cost planning work undertaken to date with professional consultants, by appropriate staffing and resourcing of the project - as proposed in the budget allocations, and through the undertaking of thorough Pre Market Engagement as part of procurement processes. Whilst it is not the outcome wanted, if costs are too much and cannot be valued engineered to get a scheme that will deliver the outcomes proposed, the final option will be to not deliver the scheme.

58. There is a risk that having engaged extensively and raised expectations amongst the public, the change of approach will not fully deliver initial expectations. However, the bigger risk to the city is not to delivery anything and see the regeneration of the area continue to stall.

59. There is a risk that loss of council revenue or impacts on local businesses will be more substantial than forecast, however a package of mitigation is proposed in this respect, and technical analysis reveals that the risks are low.

Recommendations

60. Scrutiny are asked to consider the recommendations to the Executive, which are as follows:

i. Note the evolution from the original masterplan scheme to the proposed scheme as summarised in Appendix 1, and the progress to date around planning submission and scheme development.

ii. Approve the total project funding package of up to £9.934m, to deliver the Castle & EoY and Coppergate car park works, comprised principally of WYCA and Council funding, and including the reprioritisation of up to £0.75m per annum over the project delivery period from within the general transport Capital Programme, in order to manage cost pressures.

iii. Approve the improvements to be made to Coppergate car park to ensure that it is a 24-hour self-servicing car park at an estimated cost of £200k (from the £9.934m).

iv. Approve the procurement of contractors and specialist support services to enable timely completion of the scheme (pending Planning ref 22/00209/FULM with further details submitted on the 4 July).

v. Delegate authority to the Director of City Development, in consultation with the Director of Governance, Head of Procurement and the Director of Finance, to procure such contractors and/or consultants and to take such steps as are necessary to award and enter into the resulting contracts (including any and all planning agreements and/or highways/land agreements as required; (however for the sake of clarity this delegation is not for any requirements of either the Local Planning and/or Highways Authority). The delegations given in this recommendation must be exercised within the budgets approved within this report.

vi. Agree the permanent closure of Castle car park to non-blue badge parking, from Spring 2026 (incurring loss of revenue to the Council), and approve the associated package of mitigation (to include works to Coppergate Carpark and exploring potential future works to St Georges Field Surface Carpark- to be considered as part of the wider Movement & Place workstream). To note that during the construction period the car park will be closed to all users, including blue badge holders.

Reason:

To allow the progression of the Castle & Eye scheme to delivery phases to realise key city benefits, with mechanisms in place to ensure appropriate management of budget and project risk profile, and to do so in a manner which mitigates any potential adverse impacts on Council revenue, transport network and local businesses.

Contact Details

Author:

Chief Officer Responsible for the report

Ben Murphy

Head of City Development

Bem.Murphy@York.gov.uk

Garry Taylor

Director of City Development

Garry.Taylor@York.Gov.UK

Report Approved

Date

19.09.25