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City planners uniquely positioned to usher in a new era for Newcastle’s historic Founders Place

28th February, 2025

Internal view of the Machine Shop site on Founders Place development.
Headshot of Molly smiling towards camera.
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Crucial enabling works that would unlock a multi-million pound mixed-use development in the heart of Newcastle will be the first step in bringing back an important heritage site into public use.

With One Public Estate brownfield funding already secured for the site, permission for enabling works within the growing Founders Place development would allow for the crucial first phase of clearance and remediation, with a planning decision due next month (March). Developed by igloo Regeneration with Thriving Investments (part of the Places for People group), the neglected and derelict site will evolve into the Orchard Yard housing scheme.

The funding is to help build thousands of new homes as part of the Government’s plans to get the country building again, create jobs and grow the economy. This multi-million-pound boost is awarded to councils to unlock disused brownfield sites. Newcastle city council were successful in securing £2,4m in the last funding round with £1.65m allocated 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 and 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.

If approved, enabling work on the site would allow clearing out asbestos, removal of unsafe structures – largely added in the 20th Century with little or no historical value – and put in new retaining structures. This would unlock millions of pounds of inward investment with the site eventually seeing circa 70 homes being developed.

The phased plans are poised to reinvent the Machine Shop with the proposals seeking to retain and restore the fabric of the earliest industrial structures; bringing South Street back to life by providing family homes and apartments, along with business space, a public park and courtyard.

Accessed from Sussex Street, the Smith’s Shop would complement its neighbour by providing  further housing and public spaces. Combined, the two developments will once again be open to the public, enhancing the wider Stephenson Quarter area.

Insiyah Khushnood from igloo Regeneration, said:

“The enabling works are the first essential step to breathe new life into the derelict site of the former Stephenson Works which will ultimately become the Orchard Yard residential scheme. Without these works the site would remain abandoned and inaccessible.

“We have been working since 2020, in collaboration with Newcastle City Council and other partners, to bring forward the former Stephenson Works sites, and have successfully restored The Pattern Shop building, which was completed last year. The Machine Shop and Smith’s Shop continue to be challenging due to a number of constraints. Despite this, funding was secured to open up and make the site safe, that will then lead on to the full regeneration of an unused and forgotten part of the city.”

Sarah Dyer, Heritage Consultant to igloo Regeneration said:

“During my research, it was evident that George and Robert Stephenson were at the forefront of technological innovation in the 19th century; comparable to the pioneers of mobile phone or electric vehicle design today.

“The Machine Shop and Smith’s Shop reflect the evolving demands of locomotive and marine engine production that took place there, expanding and adapting over time to meet the needs of new technology and innovation.

“Now, with the next phase, the current Machine Shop and Smith’s Shop will have the opportunity to be revitalised as spaces for living, making and  innovation. With the new access we will be able to gather more information about the building, peeling back the layers to reveal more of the original building.”

She added: “The future prospect of reopening South Street, reconnecting to the Quayside, and seeing the area once again alive with people, activity, and creativity is truly exciting. I feel the Stephenson’s would have approved!”

Other substantial public benefits of Orchard Yard include:

  • Economic Growth and Job Creation: Orchard Yard represents the first step in re-establishing public access to South Street, enabling views and appreciation of the historic route, alongside the recently refurbished Pattern Shop. This also aligns with the 2008 masterplan for the wider Stephenson Quarter. Temporary ‘meanwhile’ uses will also be explored, such as pop-up urban markets and art trails.
  • Preserving and Revealing Historic Fabric: The detailed clearance work would be  strategically targeted at removing 20th Century alterations and additions that have compromised the original historic fabric of the Stephenson Engineering Manufactory. This will enable the preservation and future restoration of key historical elements, including the Machine Shop.
  • Unlocking Archaeological Insights: The removal of later additions to the site will also create opportunities for further archaeological investigations, providing a deeper understanding of the site’s historical significance.
  • Enhanced Safety and Security: Any approved plans will remove existing hazards, mitigating the risk of vandalism and anti-social behaviour, and creating a safer environment for all.
  • Community Engagement and Educational Opportunities: igloo Regeneration with Thriving Investments has been committed to engaging with the community throughout the development process and  building on previous successful engagement seen with the £9m development of The Pattern Shop.

The advancement of Orchard Yard would help strengthening relationships with the adjacent UTC school, Newcastle College, and local universities, developing educational and training projects based on the site’s legacy and surviving archaeology. The development team is also working closely with the Robert Stephenson Trust.

  • Environmental Enhancements: igloo Regeneration with Thriving Investments will continue its work with local organisations and nature trusts to promote the “greening” of the city through co-ordinated schemes such as tree planting and planting boxes as an interim measure whilst the full potential of Orchard Yard is realised.
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