Cheshire West and Chester council is to take control of the city’s 440,000 sq ft Northgate retail development project.
The move follows a decision to terminate its long-standing agreement with ING Real Estate Development.
At a meeting last night, executive members of the council voted unanimously to end a partnership originally struck in 2000 with the former Chester city council.
Herbert Manley, executive member for prosperity, said: “The council remains unequivocally committed to the scheme but has sadly concluded that there is little likelihood of progress under the current arrangement.
“Consequently, the authority will shortly announce its own concept for the crucial redevelopment of this area of the city.”
Manley revealed that the project – vital to the future of Chester as a top-quality retail and visitor centre – would be led by an all-party management group.
Opposition leader Justin Madders added: “This is a momentous but unavoidable decision. The council has grasped the reins in the best interests of the economic future of Chester, the borough and the region.
“Further delays in significant progress would only impair Chester’s chances of retaining its former status as a top shopping city, with all the associated economic and employment benefits.”
Work on Northgate had been due to start on site in 2007, but the downturn forced ING to put its plans on hold.
In September 2010, the developer was granted a three-year extension to its planning consent.
DTZ is advising Cheshire council.
daniel.cunningham@estatesgazette.com
