A controversial building initially created as a new council headquarters in Durham city centre has been sold.
Durham University has completed its purchase of the Waterside Building at The Sands on the River Wear to develop a new business school.
The Northern Echo understands the building, which cost the council just over £51 million, has been sold for £84 million.
The authority has had to repay £14 million to the Government, meaning the profit from the sale could be as much as £19 million, although the council still may have to repay a £6 million Government grant.
Plans to move council offices there from Aykley Heads were scrapped when Labour lost control of Durham County Council after the local elections last year to a joint administration of Tories, Lib Dems and Independents.
The ageing existing council offices at County Hall, deemed too expensive to refurbish, will still have to be demolished.
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But the joint administration now plans to create new civic buildings at the existing site as well as refurbishing a Grade II listed council property on Front Street in Stanley.
Councillor Carl Marshall, leader of County Durham Labour, has said selling the new purpose-built development to create more offices was a ‘waste of time and money’.
But Cllr Amanda Hopgood, leader of Durham County Council sale of the building at The Sands was ‘excellent news for County Durham on every level’.
She said: “For the council, it is a positive financial outcome that will result in a surplus that can be invested in other key projects.
“Along the way, this will allow the university to open a world class business school in the heart of the city, that secures jobs and nurtures the next generation of entrepreneurs.”
It is understood the move has safeguarded 600 university jobs and created 160 more.
Cllr Hopgood said: “All of this will make a positive contribution to the delivery of the county council’s first economic strategy.
“In seeing this project through, partners in the joint administration have delivered on our promise of taking decisive action to address issues that matter to residents in County Durham.
“We have corrected bad mistakes made by the previous Labour administration, and taken a big step forward in delivering the best fit for purpose and financially sensible office accommodation and civic space for the authority in the long term.
“This, alongside developments at Aykley Heads, the refurbishment of the Stanley access point, and plans to base staff in other locations, will provide a genuinely flexible 21st Century outcome and will also support our work to level up across the whole county.”
Last month it emerged the council is currently dealing with a black hole in its finances sue to a £15 million overspend the authority is blaming on rising and energy prices.
County Durham Labour Leader, Cllr Carl Marshall, said: “Cllr Hopgood’s spin is fooling nobody - the sale of the building at The Sands is terrible news for County Durham on every level. “While County Durham tries to look to the future, this regressive Tory-led Coalition anchors it to the past.
“Whether that’s selling off a purpose built HQ, rejecting a county devolution deal or refusing to take responsibility for the multi-million pound black hole in council accounts.
“Every decision this cumbersome Coalition has made, when it actually manages to make any decision at all, has been a huge step backwards for our county.”
Cllr Marshall said the sale of the Waterside Building does not solve the running costs crisis faced by the council.
He said the new-build would have saved £1m a year in running costs alone, or £50m over the lifetime of the building.
Cllr Marshall added: “Moving the council into the heart of Durham would have brought hundreds into the city centre, spending money in shops and restaurants, rejuvenating the economy.
“All this decision does is further flood the city centre with students.
“It also supports the uncontrolled, unplanned mass expansion of Durham university, and will result in more misery for students who can’t find accommodation.
“County Hall is falling apart. An independent review found that the Sands was by far the best and most cost effective solution for the council. It was built on council-owned land and brought in under budget.
“Given the eye-watering rises in construction and raw material costs, there is absolutely no way that this coalition will be able to secure a site and build a new base for anything like the cost of this project.”
Durham University’s Business School in the Waterside Building will be used by 2,300 students and staff and planning permission to convert the use from council offices to higher education were approved by Durham County Council in July.
A university spokesperson said the new facilities would be ‘world-class’, adding it was an ‘important milestone’. The spokesperson said: “This will ensure our Business School will continue to thrive.
“It will also bring significant economic benefits for the city, county and region “We are making very good progress with the project and continue to engage with our Business School staff and students as plans develop.”
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