One of the biggest developments in Cornwall, which has been described as still looking like a “bomb site” at a Cornwall Council meeting, may now depend on finding a financial partner to ensure it is completed.

There are growing concerns in Truro and across the Duchy about the future of the £160m Pydar development in the city, which would see 300 new homes, space for 400 students, cafés, restaurants, nature trails, a hotel and other leisure, hospitality and cultural facilities built on the site of the former Carrick District Council offices in the Pydar Street area.

Many of the buildings on the site have been demolished at a cost of millions with no sign of construction starting, leaving an eyesore within the shadow of Truro Cathedral.

The loss of the Pydar Street, Viaduct and Carrick House car parks in the heart of the development area is now being felt within the city, exacerbated by the recent closure of the Moorfield car park due to structural issues.

Cornwall Council’s Conservative administration agreed to plough an extra £10m into the project after it ground to a halt earlier this year. Cabinet members were warned by opposition councillors at the time that Pydar could be Cornwall Council’s own “bankruptcy project”.

At a meeting to discuss a controversial deal to find a financial partner to develop the council’s 650-acre Newquay airport estate last week, Perranporth councillor Steve Arthur said: “We’ve got too many balls in the air. We’ve got Langarth [the £159m garden village development on the outskirts of Truro]. We’ve got Pydar, which we’ve just chucked another £10m at, and it’s still a bomb site.”

Cllr Arthur – who resigned from the Tory group last year – added: “The poor old airport is getting kicked in the goolies because it’s the fall guy. If we hadn’t made those political choices and bitten off more than we could chew, we wouldn’t be so desperate to get rid of the airport.”

A Truro councillor says the Pydar saga is one of the reasons why opposition members have mounted a bid to oust Cornwall Council’s Tory leader Linda Taylor.

Rob Nolan, Lib Dem councillor for Truro Boscawen & Redannick, said: “The Cabinet are playing all this very close to their chest, which is part of why we’re doing the vote of no confidence. We want more open government and to be part of discussions, if only to be able to tell our residents what’s going on.

“This is a flagship scheme. Redeveloping this area and bringing the university into Truro would be brilliant for our night-time economy and for the vitality of the town. It’s painful to watch the scheme stalling while the administration dithers.”

The council leader has admitted that a “global downturn” wasn’t expected when the Pydar project was given the green light. Cllr Taylor says there is now a move to find an “inward investor” to “bring Pydar forward”.

She said: “We’ve hit challenging times, which is happening across the whole of the UK if not globally. It’s [about] securing an investment partner. I think a lot of people are now waiting to see what happens in the autumn statement.

“As the local authority, we are very committed to engaging and having discussions with inward investors; those developers that can actually help us bring Pydar forward. Timing’s everything, and when we embarked on that decision the global downturn was not anticipated. It caught a lot of local authorities.

“We’re financially secure [but] we want to ensure we get a good delivery partner for Pydar and that is the route we are continuing on.”

An update to councillors and officers last month stated: “Since Cabinet approval, the Project Team has been busy developing designs and phasing for this transformational project in the heart of our community. While on-site activity has quietened down, there is plenty of activity taking place and we’re excited to share our plan for the autumn and early 2025.”

The latest edition of the development’s Pydar Dispatch newsletter answers a number of its own questions:

Is the Pydar project still going ahead? “Yes. Pydar is still very much a live project which will deliver the much-needed housing and other benefits to Truro, including more green space, jobs and investment.”

What happened to the £10m approved by Cornwall Council Cabinet? “The money allocated by Cornwall Council will enable the necessary redesign and rephasing of the works. The council and Treveth Developments [the council’s arm’s length building company which has been named as the main developer for the project] are strongly committed to the project and this funding will help to ensure Pydar is delivered.”

Is the university still coming to Pydar? “Falmouth University have signed a pre-let agreement confirming their commitment to bringing students to live and study in Truro at Pydar.”

When will we see more activity on the Pydar site? “The next stage of works is due to commence later this year with further surveys and the demolition of the remaining buildings.”

Who will be delivering the project? “Cornwall Council is in the process of transferring responsibility of the Pydar project to its own development company, Treveth. Treveth is experienced in delivering large-scale and complex developments and will oversee the project. Indeed, Treveth head office is in Pydar House, directly overlooking the Pydar site, and always keep a close eye on this treasured development.”

What’s happening next? “The team will be back out engaging with the community and providing updates on the project over the coming months. In particular, we hope you’ll be able to see preparations for demolishing the remaining buildings on site which include Truro Bowl, Pydar Pop-Up and Circuit House. We’ll be re-launching the Pydar website with new information. In a few months, there will also be further surveys and archaeological investigations to expose a former residential street called Good Wives Lane.”

We have contacted Cornwall Council three times over the past week asking for an update on the Pydar development but have not received a reply.