YORK’S historic Guildhall - the city’s ancient seat of government - is set to begin a new life as an incubator hub for hi-tech start-up businesses.

The city council has agreed a deal whereby the building - currently undergoing a £20 million refurbishment - will be leased to York Science Park (YSPL), a subsidiary of the University of York.

The Press understands that YSPL will pay the council £160,000 a year in rent, and that it will use the building to provide ‘flexible workspace and business support for entrepreneurs and start-ups looking to locate, invest and grow in York’.

When it opens late next year it is expected to create up to 160 jobs.

The council began refurbishing the building early last year with the aim of renting it out. The refurbishment aims to create offices, meeting rooms and conference space, a café and a separate riverside restaurant unit.

But the refurbishment was dogged by delays - there were floods, archaeology beneath the building, and then the Covid pandemic - and the council failed to attract interest in the building when it was marketed.

York Science Park then offered to pay rent of £160,000 a year for the building, excluding the restaurant. That is in line with the council’s business plan, says Tracey Carter, the council’s interim ‘director of place’.

Under the deal, which will go to the council’s Executive on November 26 for final approval, the Guildhall will remain open to the public for tours and will continue to be used for ‘full council’ meetings and other civic events such as Mayor-making. It will also be used as a meeting space for community groups and social enterprises, and as a venue for university events such as York Festival of Ideas.

Professor Kiran Trehan, the University of York’s Pro-Vice-Chancellor for Partnerships and Engagement, said: “We aim to develop and nurture a thriving cluster of businesses and establish a greater university presence in the city centre.”

Nigel Ayre, the council’s executive member for finance and performance, said: “The Guildhall has been at the centre of our city’s business and civic life for centuries and the restoration works will ensure it remains a key asset in the twenty first century.”

Danny Myers, leader of the council’s opposition Labour group, admitted the deal fitted in with Labour’s own vision for the building.

“It’s just several years late, and counting,” he said.

Details of the deal are included in a report by the council's interim 'director of place' Tracey Carter which will to the Executive meeting on November 26 and which aims to summarise the council's entire property portfolio, and make recommendations on how it can be better managed.

The portfolio includes high street shops, offices, schools and other buildings, and land. In all the council owns about 1,300 ‘assets’ worth £346million. Between them they generate an annual income for the council of about £6million.