Senior councillors in York have been urged to hand over extra funding for the city’s flagship development project to keep momentum going after “decades of false starts”.

City of York Council says the coronavirus pandemic has led to a delay of around three months on the submission of a crucial planning application for infrastructure works on the York Central site.

It is hoped the 108-acre site, which has been suggested as the possible home for a second centre of government, will create up to 2,500 homes and space for up to 6,500 jobs, together with public spaces including the city’s first new park in a century.

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But in order to “maintain project momentum”, officials behind the scheme have been forced to use some of its funding to make sure work is completed as quickly as possible.

A report to be discussed by councillors next week says the application which would allow the first phase of vital infrastructure works to go ahead on the site “has been impacted by Covid-19”.

It adds: “The finalisation of documentation and submission at the end of March was impacted by the shift to home working arrangements and the commencement of critical archaeological evaluation work on site was delayed due to the furloughing of the contractors staff.”

Funding released last October for the project was due to last until May and will be “completely exhausted” by September.

York Central, a massive brownfield site that used to be railway sidings and is just beyond the railway museum on the west side of the station. Pic by James Hardisty.

To ensure the project can proceed smoothly, the council’s executive has been asked to draw down £1.96m from its York Central Capital Budget and £1.53m from the York, North Yorkshire and East Riding Local Enterprise Partnership.

This would allow the costs and programme for delivery works to be completed and a business case to be submitted to the West Yorkshire Combined Authority to ensure they hand over £23.5m.

In March, Chancellor Rishi Sunak announced £77.1m funding for the scheme, going towards the £155m package for the infrastructure required to unlock the site for development, including a bridge and transport routes into the site.

Keith Aspden, leader of City of York Council, said: “The challenges posed by the pandemic have reinforced the importance of delivering York Central to clean and inclusive economic growth in the city.

“The continued interest in moving significant sections of central government to York Central truly demonstrates the quality of the site. Those conversations are only possible thanks to the hard work and shared vision of all the partners.

“Together, we’ve overcome decades of false starts on the site to ensure that we are in a position to deliver new business opportunities, homes and public spaces for the city.”

York Central scheme bids to keep momentum going after delays caused by pandemic