The Founders Place development in Newcastle will convert a derelict industrial site between the railway station and the river into housing and commercial property.
With brownfield funding already in place to clear the site, the council has now approved the first phase of remediation work for Manchester-based developer Igloo’s Orchard Yard housing scheme.
Newcastle City Council has secured £2.4m in from central government and allocated £1.65m of city funds to bring forward housing on Founders Place.
The South Street site, once home to workshops of the Stephenson Engineering Manufactory, has seen various industrial uses over the decades but fell into disrepair after the last tenant, Doves Building Merchant, left in 2004. The Machine Shop and Smith’s Shop derelict shells are now deemed dangerous and inaccessible.
The enabling work will now allow for the clearing out asbestos, removal of unsafe structures and put in new retaining structures.

The phased plans will reinvent the Machine Shop while retaining and restoring the fabric of the oldest industrial structures.
Cllr Dan Greenhough, cabinet member for economy, jobs and skills, said: “These are incredibly important buildings from a historic perspective, but they are also in a dangerous condition due to structural decay and asbestos. This work will enable the buildings to be made safe so work can begin restoring them to their original glory and turning them into much needed housing bringing more activity back to the site.
“This will be another step forward for Founders Place development site which is also attracting good quality jobs to the city.”
Igloo development manager Insiyah Khushnood said: “We are delighted to have secured planning permission for the enabling work which is the first essential step to breathing new life into this derelict site of the former Stephenson Works. Without these works the site would remain abandoned but now we have the opportunity to take the first steps in this important regeneration scheme that will create a thriving residential community within an unused and forgotten part of the city.”
Work is expected to start on the site this summer.