The announcement means that work on the 392,000 sq ft extension should begin in 2018, with completion in 2019.
Work had been suspended in July 2015 due to issues around how to work around the Edinburgh Glasgow Improvement Programme (EGIP) scheme at Queen Street Station.
After it became apparent that both work programmes could not be delivered in tandem, Land Securities Buchanan Limited (LSBL) undertook a full review of the options for the extension of the Galleries. In late 2016, Scottish Ministers instructed Transport Scotland to further review the potential of both EGIP and a reconfigured Buchanan Galleries extension scheme to be delivered.
The actions approved by the authority’s executive committee include varying the lease terms for LSBL from 100 years to 175 years.
Councillor Susan Aitken, leader of Glasgow City Council and city convener for inclusive economic growth, said: “The council’s approval of these actions allows for the southern extension of the Buchanan Galleries to go forward while work on the EGIP scheme at Queen Street Station continues. In taking this decision, we are looking forward to significant economic benefits and opportunities for the whole city, as we work to make Glasgow city centre an even more attractive location for visitors and investors. We will work with the developer to ensure that everyone can enjoy new and existing fantastic features of the Galleries, including the steps, one of the city’s most popular public spaces.”
The Buchanan Quarter TIF scheme also aims to lever in £310 million of private sector investment; enable up to £80m of public infrastructure works and public realm improvements; create a new 1500-space car park at Queen Street Station with 35,000 sq ft of associated retail units; and provide 50,000 sq ft of new retail development at southern end of the existing Buchanan Galleries site.