Norwich City Council could have to borrow up to £3m to speed up eco-measures needed for the Anglia Square revamp to go ahead.
Officials at Labour-run City Hall say work to install water saving measures in council-owned housing - crucial to overcome a limbo preventing new homes from being built - has not been happening quickly enough.
That could have repercussions for the city council's plans to construct new homes at the former shopping centre.
So the authority is keen to be allowed to borrow up to £3m so it can pay contractors to accelerate the work to address the 'nutrient neutrality' issue.
That first arose in March 2022 when councils were told by government advisors Natural England they could not permit housing applications within catchment areas of the River Wensum and the Broads, because of concerns nutrients created by development could go into waterways and harm species.
Decisions over new homes in the catchment areas of the Broads and River Wensum were put on hold due to concerns about pollution (Image: Mike Page)
Councils were told developments had to prove they would not lead to an increase in phosphate or nutrient run-off.
Or, if they would, then measures would be needed to mitigate for that.
The city council's mitigation scheme was to install water-saving measures in its council homes, giving residents new water fittings which reduce water usage.
The idea was the council would then be able to demonstrate mitigation - unlocking key developments, such as the revamp of Anglia Square.
But in papers which will come before a meeting of the council's cabinet on Wednesday (September 10), officers state: "The mitigation scheme has failed to deliver mitigation fast enough to meet the expected need for the first phases of Anglia Square.
"It is proposed to bring a contractor in to complete the water saving measures over the existing work that is being undertaken."
The cabinet will be asked to agree to borrow £3m loan from the Nutrient Mitigation Fund - money awarded by the government to help councils in Norfolk overcome the nutrient neutrality issue.
Norwich City Council's City Hall headquarters (Image: EDP pics © 2007)
Officers say the money borrowed will be recouped from housing developer contributions.
The city council bought the Anglia Square site for £5.6m and hopes to build 1,100 homes at the site.
The £350m revamp of the site is expected to be funded by housing developers and other investors, including Aviva.
Share