£2m makeover for city's leading leisure venue in 30-year deal

The fate of the Barbican auditorium has remained a thorn in the side of York Council ever since the venue closed in 2004.

However, the building is to undergo a 2m redevelopment after the council agreed a 30-year deal with one of the world's leading venue operators, SMG Europe Holdings Ltd.

Council leader Andrew Waller admitted yesterday that the bid to secure the future of the Barbican had been one of his biggest challenges since he took over at the helm of the authority three years ago.

Coun Waller said: "It is great that we have reached a point after such a long and chequered history of the Barbican.

"It is a new chapter for the Barbican, and it is all the more rewarding as many local authorities are having to look towards closing leisure venues in the wake of the Government's cutbacks."

Coun Waller also claimed that the regeneration would will act as a catalyst for the redevelopment of the nearby Castle Piccadilly district.

Developers agreed a deal in 2008 to transform the five-and-a-half-acre site with offices, housing developments and an expansion of the city centre's shopping district.

However, the development has yet to become a reality in the wake of the recession.

The redevelopment of the Barbican site will enable as many as 250 events including conferences and concerts ranging from rock to classical as well as stand-up comedy to be staged each year.

The venue hosted only 50 or 60 events a year when it was run by the council, and it is hoped snooker tournaments will also return.

The re-launch of the venue, which is due to open in May after building work starts in January, will bring as much as 12m annually into the city's economy and create 60 full-time jobs.

SMG Europe will provide 1m for the re-development, including new bars, a restaurant and stage and lighting equipment, with the remainder of the cash coming from the council.

However, the authority is borrowing the 1m to pay for the work, and rents paid by SMG Europe will cover the loan repayments.

The company's theatres director, Nick Reed, was adamant that there as a gap in the market for the revamped Barbican.

He said yesterday: "We are confident that there is a bright future ahead for the venue and we are very encouraged by the goodwill towards our plans that we have received from both the people of York and the entertainment industry.

"To be re-opening and improving a major venue like the Barbican when the rest of the UK cultural sector is bracing itself for cuts and closures is a remarkable story for York.

"It is also testament to the city's imagination in making it happen."

The deal with SMG Europe has been brokered over the last year after the company was chosen after a detailed tendering process.

The firm runs Europe's largest indoor venue, the 20,000-seat Manchester Evening News Arena, as well as Newcastle's Metro Radio Arena and the Playhouse in Whitley Bay.

The future of the Barbican's neighbouring Kent Street site has yet to be decided, although it is hoped a hotel will be built there.

North Yorkshire Fire and Rescue Service is also considering building a new station on the land to replace the outdated facility in Clifford Street.

However, the sale of the Barbican provoked strong opposition among campaigners, who took their fight unsuccessfully to the High Court in London for a judicial review.

The challenge faltered in 2005 after the Legal Services Commission ruled the campaigners had to contribute half of the huge legal costs.