Plans in for next phase of Heart of the City II - as Sheffield City Council prepares for life after the pandemic

The developments, on a plot between Cambridge Street and Carver Street, are the next phase of the Heart of the City II scheme.

Sheffield City Council submitted the plans to itself, as it prepares for life after the pandemic. The authority is also bankrolling the £470m project.

John Lewis is not part of the HoCII scheme. Prior to lockdown it was under pressure to revamp its department store, on Cambridge Street. But now there are fears it could close as the firm contracts.

A city council spokeswoman said the new food hall-style building, would be called ‘Cambridge Street Collective’.

The historic building fronts, including the former Henry’s Bar, would be revamped to bring them back into use and a new structure added behind. There would also be shops, a bar and restaurant.

The existing Bethel Chapel building will also be renovated, with plans to turn it into a live entertainment venue.

The plot is also set to feature a seven-storey office building in dark brown metal, with shops, restaurants or cafés at the ground floor.

Historic workshops at listed Leah’s Yard, also on Cambridge Street, are not part of this application.

Coun Mazher Iqbal, cabinet member for business and investment at Sheffield City Council, said the plans went in after a six-week consultation.

He added: “There’s no doubt that these are unsettling times for all of us, including many city centre businesses. Whilst it is critical for us to help our businesses with immediate challenges, it is also vital that we continue to build a strong and resilient city centre that is fit for the future. The delivery of Heart of the City II is central to those efforts.”

Sheffield City Council took over the city centre scheme from Hammerson after the developer worked for 10 fruitless years.

Since then an £80m headquarters for HSBC has gone up and land on Wellington Street has been sold for flats. New buildings on Pinstone Street are being constructed behind historic frontages.

Plans have been unveiled for an upmarket hotel further up Pinstone Street, opposite the Peace Gardens, and a leisure space in the former Embrace nightclub which is adjoining but fronts on to Barker’s Pool. The joint project is set to cost £29m.

The HOCII scheme is being paid for with cash borrowed from the government’s Public Works Loan Board. More than £200m has been spent so far.

Nalin Seneviratne, the authority’s director of city centre development, said previously it should be repaid by 2038.

But the project was already regenerating the city centre, creating jobs and boosting council coffers, which had received “millions” from the land sale and rent from HSBC.

He added: “This is an investment, it’s not dead money and ultimately we will get a return.

“To pay it off we will either sell the buildings or retain them if the income exceeds the borrowing costs.”

The risk of failing to find occupiers was mitigated by taking a block by block approach, he added.

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