The Council is expecting to agree to sell off land in Hungate which it spent £2.4 million on purchasing in 2007. It was to have been the site of the Council’s new HQ but the plans were effectively vetoed by English Heritage.

Now, as was forecast at the time, the site (which includes the Haymarket car park and the former Peasholme centre) is set to sell for close to its £5 million valuation.

It will become the new home of insurance giant Hiscox with up to 300 new jobs created.

The developers also hope to put a large 262 bedroomed hotel on the site although, with so many planning permissions outstanding for this type of development in the City, there must be a question mark over this part of the scheme.

Residents will be looking carefully at the business case that is presented for the sale. This is a prime site and one that needs to generate a substantial premium for local taxpayers. The annual loss of income from the car park (around £150,000) will need to be factored into any valuation.

But generally the announcement could be good news for the City if the project gets planning permission.

Eyes will turn to those conservation groups which opposed the HQ design.

English Heritage in particular – who claimed to be concerned about the Listed 15th century Black Swan public house which adjoins the site – may have to modify their views on whether this style of modern architecture can stand side by side with historic buildings.