Heart of the City: Sheffield City Council paid over £9m to businesses taking space in new scheme, figures reveal

The figures were given to The Yorkshire Post following a Freedom of Information request made at the end of last month.

A spokesperson for Sheffield City Council said: “Capital contributions made by developers and landlords, as Sheffield City Council is for Heart of the City, to tenants is commonplace for lettings across the commercial, retail, leisure, and hospitality sectors.

“The incentives paid to each tenant are negotiated individually and are in keeping with industry standards. As with all upfront costs, the capital contributions form part of a robust business case for Heart of the City.”

The council did not disclose how much had been given to individual tenants within the development on the grounds that such disclosure would “prejudice the council’s commercial interests”.

A statement accompanying the figures given to The Yorkshire Post read: “Disclosure of the amounts paid would prejudice the council’s commercial interests as the council may be constrained in its negotiating tactics with future tenants.”

Though the council also did not disclose which businesses had been given payments, tenants in the development include HSBC and fashion retailers Weekday and Monki. Outdoor brand Fjallraven is also set to take space within the development, as well as Yards Store, an independent men’s fashion retailer, owned by Parasol Retail Ltd.

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The figures come after it was found in September last year that Barnsley Council had paid over £10m to tenants in its Glass Works development over two years from 2021.

The Heart of the City development project covers retail, commercial, residential and entertainment space. The scheme, which will cover 1.5m sq ft of development, is being led by Sheffield City Council and its strategic development partner Queensberry.

A Sheffield City Council Spokesperson added: “The development will create a fantastic, vibrant place for people to live, work and play bringing many new and exciting brands to the city.

“The Council and project team behind Heart of the City have been working with tenants to achieve this aim.”

The development will also feature a new food hall situated between Cambridge Street and Wellington Street.

Titled Cambridge Street Collective, the venue will be run by Blend Family, the company behind Sheffield’s Cutlery Works.

The council estimates that whilst under redevelopment and post completion, the Heart of the City development will generate 7,000 direct and indirect jobs for the city by 2030.

The project will also feature a 1.5m sq ft mixed use development titled Kangaroo Works, featuring living space and retail units. Last week, it was announced that Tesco express and asian fusion bakery and dessert eatery Popin, by Lynns, would take space in the Kangaroo Works development.