The people of Truro are likely to finally see movement on the much-delayed Pydar development in the city.

The huge scheme involves building 300 new homes, education and residential space for 400 students, cafés, restaurants, nature trails, a hotel and other leisure, hospitality and cultural facilities on the site of the former Carrick District Council offices and other buildings in the area.

Originally costed at around £170-million but now expected to be a lot more than that, the first round of demolition started in June 2022 but there has been no further movement on the site for over a year, with accusations that the area looks like a “bomb site”.

However, a Cornwall Council budget scrutiny committee heard on Wednesday, January 22 that two major steps in the progress of the project are now due to take place – a new planning application, which will change aspects of the development, and the final stage of demolition. The latter will happen as soon as possible to put an end to antisocial behaviour which has been taking place in and around the remaining empty buildings.

The council’s strategic director for development Phil Mason told councillors that Pydar needs to gain a new planning permission as the old scheme doesn’t meet new fire safety regulations.

He said that would allow the council to alter the content of the site to include more homes and would divide the site up into smaller phases which could be developed separately from each other.

Mr Mason said: “We believe that means we have a much more marketable scheme as you haven’t got to find a single developer to take on the whole thing.”

He added that demolition of the remaining buildings is due to take place due to problems with antisocial behaviour and the costs of keeping the vacant buildings in a state of repair. The remaining buildings include Truro Bowl, Pydar Pop-Up and Circuit House.

Mr Mason told the meeting: “Those two things give us a marketable scheme and we will then work with Homes England to draw in additional grant funding and find the market interest to take it forward.”

There was some controversy last year when the council agreed to inject a further £10m into the development to ensure the scheme didn’t become “abortive”. The money was allocated to enable the necessary redesign and rephasing of the works.

Mr Mason gave an update to the scrutiny meeting: “The bottom line is that we are proposing to reduce the capital allocation from £10-million over two years to £3.5-million. Therefore that £6.5-million is a reduction on the capital programme.”

Earlier this month Tim Mulholland, managing director of Treveth – the council’s construction company – which is currently acting as development manager for the Pydar development, reiterated that the ambitious scheme would be completed despite the economic downturn.

He said: “We’re about to start the demolition. The reason we couldn’t is there’s been a bird nesting season, so we missed the window last year.” He said the cost of living crisis has had an impact on the build programme.

“We’ve still got an awful lot of interest from hoteliers, the residentials are ready to go, but unfortunately the gilt rate and the interest rate at the level it is meant we have to wait until it is viable again. It’s frustrating but it’s a good scheme and it will come back – it’s just a case of waiting.

“It’s won awards and we haven’t built anything yet. It will make a hell of a difference not just to Truro – it shows a level of ambition which perhaps hasn’t been seen in Cornwall before. If you want inward growth, you need to show the outside world that we’re up for doing projects like this, instead of the usual small scale stuff we’ve always done.”

A website dedicated to the development states: “Pydar will pioneer new ways of living, learning, working and playing; putting the community back into the heart of Truro and creating a prosperous, inclusive and sustainable neighbourhood. It will represent the very best of Cornwall with space for local artists and craftspeople to those creating cutting-edge digital technologies.

“It will be home to multi-generational housing and a new innovative learning and living environment to help grow the local Truro economy. It will embrace the rediscovered riverside and offer a range of leisure, hospitality and cultural facilities and events. With a focus on providing energy efficient buildings, sustainable transport and increased biodiversity, Pydar will be a place that is tackling the challenge of climate change for future generations.

“By becoming a go-to destination for all who love Cornwall and seek to explore central Truro, the buzz of Pydar will help shape a strong future for the city.”