A disused council building is set to be transformed into a three-storey residential care facility after being sold to a nationally renowned care home provider.

The civic centre at Stone Cross in Northallerton has been sold to LNT Care Developments Ltd, which plans to redevelop the site and open a 66-bedroom care home with operator Crystal Care Collection that will support North Yorkshire’s older residents.

The building served as the headquarters for the former Hambleton District Council before the authority was merged with seven other local authorities to create North Yorkshire Council in 2023 as part of local government reorganisation.

The council inherited a significant estate of land and property when the eight authorities became one organisation. North Yorkshire Council now owns more than 3,200 buildings across the county, ranging from community and wellbeing facilities to operational bases and schools.

There is no longer an operational need for the council to retain the civic centre, as many of the services previously delivered at the Stone Cross site – including a customer services hub – have already relocated to other council-owned premises to better serve residents.

As a result, it was agreed that a sale would provide the best outcome for both the authority and communities, generating valuable funds that will be reinvested elsewhere in the council as well as reducing annual running costs.

North Yorkshire Council’s deputy leader, Cllr Gareth Dadd, whose responsibilities include finance and assets, said: “When this council was launched three years ago, we inherited a large number of buildings across North Yorkshire that were underutilised while still incurring significant costs to the taxpayer. I am pleased that the deal has now been completed.

“We have a responsibility to strategically review and manage the buildings we own, ensuring that every asset is used effectively so we deliver the best value for money to residents, without compromising the quality of services that we provide.

“The sale of Stone Cross will generate a significant capital return that can be reinvested into other priority areas and make substantial savings in running costs.”

Cllr Steve Watson, local member for the Northallerton North and Brompton division on North Yorkshire Council, added: “This is welcome news with a building that has sat vacant for some time now to be transformed to support North Yorkshire’s older residents.

“This will result in significant savings that can be used to support key services elsewhere, while supporting regeneration and driving investment in the town.”

Members of the Richmond area planning committee approved proposals to redevelop the former council offices into a care home in May this year.

The sale does not affect the adjacent leisure centre or the former caretaker’s property which are located next to the Stone Cross site.

According to planning documents, the redevelopment will include 66 en suite bedrooms, a library and landscaped gardens for residents, along with 25 parking spaces, electric vehicle charging points and cycle storage.

Work to redevelop the site is due to begin next month (July).

The land director at LNT Care Developments, Keeley Sharp, said: “We are delighted with the acquisition of the civic centre, enabling care provision to the community of Northallerton, alongside the 60 employment opportunities we will generate.

“Once open, Crystal Care Collection will provide person-centred, residential, dementia and respite care with an all-inclusive fee, supporting residents to live well, every day.”

In April last year, North Yorkshire Council relocated its customer services hub from Stone Cross to the Campus Building at Treadmills, on the site of the town’s former prison. Located in the heart of Northallerton town centre, the hub was the first of its kind within North Yorkshire to be purpose-designed to provide easier access for customers.

The move has allowed the council to deliver a more responsive and consistent service for residents, which prioritises accessibility and inclusivity, connecting communities to a range of services both on-site and through video technology.

A number of back-office services previously based at Stone Cross have largely relocated to the County Hall campus.

The civic centre site was offered to the market last year, with sale negotiations led by the council’s property consultancy, Align.

The director of commercial agency and head of commercial real estate at Align, Daniel Clinch, said: “The sale of Stonecross is a significant milestone that delivers positive outcomes for everyone involved.

“LNT Care Developments are a nationally recognised operator with an outstanding track record, and the redevelopment of this site will make a tangible contribution to care provision across North Yorkshire.

“This is not simply a property transaction – it is a long-term investment in the community that the council serves.”

The sale of Stone Cross forms part of the council’s wider work to review its estate, unlock regeneration opportunities and generate funds, while supporting town centres by driving investment.