Councillors at the Policy and Resources Committee approved recommendations for the Council to take on the role as lead facilitator for the redevelopment.
Convener Stephen Hagan said: "The Council has been leading the development of housing sites in recent years and it makes sense for us to use these skills we have built up to guide redevelopment of this central area in Kirkwall.
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"Retaining control over the development process for the former Jewsons site will allow the Council to lead the longer term development of the wider Great Western Road/Peedie Sea area.
"This coordinated approach has the potential to maximise land value and development interests in that part of town."
Gavin Barr, Planning Manager, Development Planning and Regeneration said: "With the neighbouring Scarth Centre now vacant, and a new Kirkwall Urban Design Framework (UDF) in place, the Council has an opportunity to review the planning and development opportunities for the Jewsons site and the wider Great Western Road/Junction area.
"The decision to dedicate new team resources to the project demonstrates the Council’s commitment to the site’s redevelopment. The new resources will allow us the opportunity to actively re-engage with development interests in the site and ensure we work effectively with interested parties to create a new masterplan which is market-tested from the very beginning.
"Our aim is that the new plan will facilitate realistic and effective local solutions for the development process for Jewsons and the wider area."
The decision is subject to approval at Full Council.
(CD)
