Coventry council is in advanced negotiations to anchor the £1.5bn regeneration of the Warwickshire city.
The local authority is keen to occupy 200,000 sq ft of offices at the Friargate development.
Proposals will be taken to its cabinet within the next few weeks, with the hope of a decision before the end of the year.
A letting to the council would provide the security needed to kick-start the 3.2m sq ft project.
Sources said a private sector occupier, set to take as much as 50,000 sq ft at Friargate, was also set to sign for space once a commitment from the local authority had been secured.
“If the council anchors Friargate it will be a shot in the arm for the project and the city,” said one local expert. The council needs to be proactive, not reactive, to get regeneration going. This is the perfect way to show commitment.”
Irish developer Cannon Kirk got consent for the office-led development in early 2010. The 37-acre scheme features 25 buildings, including 14 grade-A offices, two hotels and homes.
The deal, which would be Coventry city centre’s largest office prelet, is dependent on the local authority consolidating nine outdated office buildings.
Martin Yardley, director of city services and development at the council, declined to comment on the talks.
Work on the 15-year Friargate project is scheduled to begin next year.
GVA is letting agent on the scheme.
lisa.pilkington@estatesgazette.com
