A ‘decree nisi’ has been reached between Sheffield Council and developer Hammerson as part of legal proceedings to end ties between the organisations over the failed Sevenstone retail scheme.
Sheffield Council said it has launched the formal process to end legal agreements for the scheme after ditching Hammerson 10 weeks ago because the company would not commit to a start date.
The council remains committed to a new retail scheme in the city centre and is considering setting up its own venture to begin work on elements - although a private partner is set to be appointed next year.
A new scheme will cover the same area as Sevenstone, between Barker’s Pool, The Moor and Wellington Street, but will have a different name.
Some £30 million of future business rates are available to borrow from the Government for the scheme.
Coun Leigh Bramall, Sheffield Council cabinet member for business, skills and development, said: “We are taking decisive and clear action to deliver a new retail quarter for Sheffield.”
Sheffield Council said there would be no cost to the public from ending agreements with Hammerson.