A new partner has come forward with proposals to take on the stalled revamp of The Fleece Hotel.

The Phoenix Village Project wants to create an enterprise hub where independent businesses mentor young adults who have "fallen through the gaps".

The Cheltenham- based organisation is putting together a business plan for development of the historic site as well as the neighbouring Longsmith Street Carpark and former Gloucestershire Academy of Music building on Mercers Entry.

The mixed-use scheme could include small scale retail, food, drink, leisure, and residential opportunities.

But its main purpose would be as a "one-stop" centre with supported accommodation where those struggling with unemployment, addiction or homelessness can live, socialise and receive support and training.

Gloucester City Council is due to discuss the plans on Monday (Feb 26) and decide whether to apply for grant funding to move the project forward. It may require match funding from the council and its partner.

Last month it was revealed the council had diverted £6.3m of funding away from the Fleece Hotel  revamp after interest from developers Dowdeswell Group "fell away".

The money was reallocated to the Forum and new University of Gloucestershire City Centre Campus.

It has been 13 years since the council first took ownership of the site and it has pumped thousands of pounds into trying to preserve the historic buildings, some of which date back to the 1200s, while a developer is found.

It spent £350,000 on stabilisation works before first taking the site to the market in 2014 but it failed to attract a buyer after interest from the YMCA dwindled.

Dowdeswell Estates was appointed development partner in 2017 with a proposal to develop it as a boutique hotel with retail but that agreement broke down last year.

The council report states: "Unfortunately, the Covid pandemic and the significant change in the local economy that ensued, made the boutique hotel with retail use of the site unrealistic."

The council hopes to have finally found a solution in The Phoenix Village Project which it calls a "highly sustainable contribution towards the regeneration of Gloucester".

The project was founded by businessman Marksteen Adamson - founding partner, chief creative officer and director of strategy at Cheltenham design agency Asha & Co.

Its vision is to: " Create a state-of-the-art community hub with carefully curated independent professional businesses. Teach, train and mentor disenfranchised young adults, providing work opportunities and qualifications, as well as support and solutions for mental well-being and nutritional health.

"To build a new and desirable destination quarter in the heart of the community. To create a thriving, lively, like-minded and enterprising collective of purposefully selected and carefully curated independent businesses. Teaching enterprising skills and building sound minds for practical, social, and personal regeneration."

The concept was presented to all local councils, housing associations and the police constabulary in Gloucestershire in 2019 and since then it has been looking for a suitable space.

Their supporters include Rod Hansen, chief constable of Gloucestershire Constabulary, Gavin Poole, CEO at Here East, John Trolan, CEP of The Nelson Trust and Daniel O'Neill, CEO and founder of ProCook.

The project is powered by Community Interest Company (CIC) The Giving Share and rather than pay rent per sqft, businesses will be given space based on their need, rent-free and instead pay a reduced sum into a social fund.

The council said the land in question has been assessed as having a "negative value" and if the scheme goes ahead it will aim to transfer ownership of The Fleece site to the Project.

In the meantime it will lead on the heritage led regeneration of the existing historic buildings in order to attract funding

The report said: "We could continue to leave the site mothballed, but there are annual maintenance costs incurred by the council and it is likely that deterioration of the site will incur increased costs in the future.

"It is not possible to simply offer the Fleece for sale, given the considerable conservation deficit on the site.

"The Council could act alone as the developer but doing so would involve a multi-million pound commitment as well as significant officer resource."

Over the last two years the council has used some of a £1.9m Historic England grant to open up the Great Inn and Westgate range on the Fleece site and estimate repairs costs. Last year it gave Punchline an exclusive look around the site .

Further work and analysis of the other buildings on site will be needed before detailed proposals and costs can be drawn up.

Leaving the site to rot and ruin is not an option, said the council as the "highly significant heritage assets" need to be preserved for future generations and to help contribute to the vibrancy of the city centre.

"It is felt that with the detailed survey work on the Great Inn and Westgate range now complete, giving cost assurance on the most significant buildings, and with an interested party with a business case that fits with the Councils aspirations for the site, the Council should take this opportunity to develop the proposals into firm plans."

Punchline-gloucester.com says: "The Fleece Hotel project has been kicking around for decades but the council has found the right partner for the job this time.

"On paper it looks exciting, innovative and brave and we've admired and followed Marksteen Adamson's vision for the Phoenix Village Project in Cheltenham for many years. Perhaps Cheltenham's not the right place for it and he'll get a better reception in the city.

"Having visited the site many times it does need major investment but also 'passion' and staying power to see a project like this through. Only time will tell but we wish them well."