As City of York Council unveils its plans for a new £30 million office complex, political reporter STEVE CARROLL looks at the future for the buildings left behind.

WHEN one door closes, another one opens.

The council may intend to leave its offices - dotted around the city centre - behind when it moves into the Hungate development, but its departure will usher in one of the largest property sales for many years.

When the doors of St Leonard's Place, Blake Street, Piccadilly, Ashbank, Hollycroft and The Lodge are finally locked, property experts have predicted a rush from developers looking to get their hands on a piece of a £10 million prize package.

Big-name retailers, a five-star hotel chain, new residential developments - all could be appearing when the sale hammer goes down on this massive property auction.

At the heart will be the Georgian houses in St Leonard's Place, which could be revitalised and transformed into a thriving part of York's 'arts quarter' once the city council moves out.

The crescent was originally a row of nine substantial town houses.

"Somebody might come along and say 'I would like to turn them back into town houses'," said Coun Quentin Macdonald, the city council's executive member for resources.

More likely, however, is that the crescent would be refurbished for a mixed use. One or two of the old town houses could be restored, with other buildings being used for different purposes.

"The end buildings could be small hotels," said Neil Hindhaugh, the council's

assistant director of property services.

"Maybe the ground level of some of the buildings could be retail, or restaurants, perhaps with flats above."

Because the buildings are all listed, however, there are strict constraints on what alterations can be made.

A hotel complex would be a popular addition to York's tourist economy, and much sought after, said property expert Andrew Hedley, a partner at city firm Blacks.

He also believes the city council will have little difficulty disposing of its other properties, with retail and residential developments sure to be popular.

"York is a property hotspot, which gains international attention," he said. "There is, at the moment, a retail requirement, with major companies looking for units of the right size in York.

"Half a dozen hotel groups have expressed interest, and St Leonard's Place is a wonderful opportunity. Whatever comes onto the market will do well, York is that kind of market."

How does the council see the opportunity?

Coun Macdonald, in effect the council's estate agent, believes it is "very exciting".

He said the authority could consider putting forward a development brief, giving those interested in purchasing the buildings a guide on the kinds of uses which might be given planning consent.

"When we come to dispose of those buildings, we will aim to get the right price," he said. "But we won't be doing that just yet.

"We may even get a bit more (for the buildings), and then have to borrow a bit less. These are very exciting times.

"We could look at a development brief, but we would not seek to directly determine what developers would come up with."

The sky's the limit. There could be scope for conservation organisations, such as York Conservation Trust, to come in and snap up the properties - as was the case with the De Grey Rooms - and then lease them out to organisations, ensuring the legacy of the buildings are retained.

First things first. Council chiefs are focusing on getting their ambitious Hungate office plans off the ground before they look at disposing of their office assets.

"We have got the bones of that plan in our minds, but it is not as yet down on paper," Coun Macdonald said.

It will be some time before developers start rushing to commercial property companies to try and buy up a piece of St Leonard's Place or Blake Street.

But when the time comes, it's unlikely there will be only a trickle of inquiries.

Updated: 10:47 Monday, November 21, 2005