The regeneration of Plymouth’s Civic Centre is set to cost at least £49 million, with the city council borrowing more than £17 million for the project. The city council has placed the transformation of the dilapidated building at the centre of its new vision for the city centre. The goal is to create 10,000 homes in the area, though challenges such as low property values have made it difficult to attract private sector investment.

The council has been working with Homes England to convert the main tower of the Civic Centre into 144 flats, hoping this will act as a catalyst for wider redevelopment in the city. The estimated cost of the project is £49.603 million.

The council’s cabinet is scheduled to discuss the plans and the broader vision for the city centre on Monday, March 31. A detailed report, including cost analysis and potential risks, will be presented. Subject to approval, Homes England will provide £20 million for the regeneration, while the council will contribute £17.366 million in borrowed funds.

The borrowed funds will include £14.395 million of corporate borrowing, part of which will cover costs incurred for the Armada Way revamp. The remaining funds will include £8.5 million of Levelling Up money and £950,000 from the District Heat Network funding. These funds are part of a plan to link the completed building to a proposed city centre district heat network.

Additionally, the council will be asked to approve the freehold purchase of the 14-storey building from Urban Splash for just £1. The lease of the building to third parties will also be considered.

If nothing is done, the Civic Centre will remain derelict, and no new homes will be built in the city centre. The council aims to partner with Homes England and sign a memorandum of understanding (MoU) to proceed with the redevelopment.

Despite the council's plans, a report from the Chartered Institute of Public Finance and Accountancy (CIPFA) has raised concerns about the council’s high borrowing, predicting that it will reach £980.3 million by 2029, potentially limiting the ability to fund large projects and services.

Some risks associated with the Civic Centre project include rising costs, untested building surveys, and the lack of appointed contractors or developers. Homes England’s role will be to introduce potential development partners with a proven track record.

The council hopes that one of these partners will deliver new homes in the city centre, likely for private rent or sale, although affordable housing is not expected in the Civic Centre redevelopment.