Wates has been appointed initially to carry out the detailed design and to provide a tender price for construction.
The Castle Mills scheme involves the construction of 106 apartments, a new pedestrian and cycle bridge over the River Foss, and the opening up of the rear of the Castle Museum in to a public riverside park.
The new bridge is expected to play a large role in reshaping how the area is used, connecting Piccadilly’s community to the Castle Museum, and the riverside cycle and pedestrian routes that will flow around it.
The commercial return generated from the sale of the apartments will help to pay for the majority of the public benefits and infrastructure of the wider Castle Gateway Masterplan, the council said.
The anticipated construction value is within the range of £24m to £27m.
City of York council executive will make a decision in October on whether to proceed with construction based on the actual tender cost provided by Wates.
Councillor Nigel Ayre, executive member for finance and performance, said: “Following a competitive tender process Wates have been selected to carry out the detailed design and to provide the full tender cost for the Castle Mills development. The project has the potential to transform the Piccadilly area in York, through the creation of new homes including council housing, a riverside park and a new cycle bridge.
“That being said, it is also important that the Castle Mills development delivers value for money. Wates will produce a tender cost for the project, which will then be reviewed by the council’s executive in October. A decision will then be made on whether to progress the project.”