Bradford Council is considering a deal to buy two prime city centre sites for the peppercorn price of £2 after the Homes and Communities Agency yesterday agreed to provide £3.5 million of funding.

The investment of £1.3m for the former Odeon cinema and £2.2m for the old Tyrls police station is aimed at allowing the Council to progress with its regeneration of the city centre – but is less than the £4.1 million requested by the authority.

The Council last month agreed to take on the two sites for £1 each if the HCA agreed to provide cash after plans by a private company to redevelop the site fell through.

Councillor Andrew Thornton, the Council’s executive member for the environment, said the executive would now discuss the offer before making a decision.

“We welcome this news as I’m sure many people throughout the district will as it provides a lifeline for the Odeon building while interested groups come forward with commercially viable proposals for its future use.

“The £1.3m for the Odeon is the amount that we asked for to address essential health and safety works required to stabilise the building for a limited period while those proposals are considered.

“It has always been the policy of the Council’s current leadership to try to find a sustainable future for the Odeon that can be delivered.

“We have invited expressions of interest for the Odeon building and people have until July 13 this year to submit them. Hopefully this news will bring in more ideas and suggestions.

“We had asked for £2.8m investment to prepare the Tyrls site for development so we will need to consider the implications of this.

“As we didn’t get the full £4.1m we asked for and we have not seen the conditions of the offer we need to clarify these details and the matter will need to be discussed by the Council’s executive for a decision.”

The HCA terminated a development agreement with Langtree Artisan in September last year after it failed to comply with its terms and sign a Section 106 agreement which could have included contributions to improve the local community and affordable housing.

Langtree had wanted to demolish the 1930s building and build a £40m development of offices, a hotel and apartments which it called New Victoria Place.

Once that agreement was terminated, the HCA had said that it wanted to work with the Council and the local community to find a solution, before making an initial offer to sell the sites to the Council for £1 each plus £100,000 maintenance cash.

David Curtis, the HCA’s executive director for the North East, Yorkshire and The Humber, said it had spent £1.3 million on “essential repairs” to the Odeon in the past 12 months.

“The transfers will give the Council control of two sites integral to the transformation of the city centre and our £3.5m investment will help them to prepare the sites for development.

“It should also give confidence to interested groups to finalise their plans for returning the former Odeon to economic and social use that will benefit the Bradford community.”

George Galloway MP (Respect, Bradford West) urged the Council to accept the offer.

He said: “Odeon campaigners who fought tirelessly have won a second historic victory – first the successful campaign to stop the demolition and then pressurising the HCA into raising its initial offer from £100,000 to maintain the building, now to £3.5 million.

“This is brilliant news and shows that finally the powers that be have finally listened to the overwhelming desire of Bradfordians.

“I hope the Council will now take this opportunity to promote the iconic Odeon, inviting ideas for use and investment to help restore Bradford’s beleaguered city centre.”

David Ward MP (Lib Dem, Bradford East) said: “This is a positive step, a psychological boost, another ‘Bradford goes to Wembley’.

“It was crucial that the HCA fulfilled its responsibilities passed on by Yorkshire Forward.

“It puts us into the position for to make the Odeon viable for a developer.

“Remember it’s already had £1.25m spent on it, eradicating the asbestos and making it water-tight.”