Derbyshire County Council has launched a competitive procurement process to appoint a development partner for the landmark regeneration of Smedley’s Hydro in Matlock.

The move marks a significant step forward in the council’s plans to restore and repurpose County Hall as a mixed-use destination. The project will secure the long-term future of the Grade II listed site, while unlocking major economic and community benefits for Derbyshire.

The council is seeking an experienced master developer to deliver the comprehensive redevelopment. The scheme includes the restoration and reuse of the historic South Block, North Block and Winter Gardens along with delivery of a new civic quarter and enabling residential development.

The opportunity centres on the former Smedley’s Hydropathic Establishment, which opened in 1853 as a spa. This Grade II-listed building became Derbyshire’s County Hall in the 1950s and has been a key civic site ever since. Located within the well-known Smedley heritage grounds, the estate is a regional landmark that will shape the site’s future identity.

The proposals will restore historic buildings to their optimal uses and introduce new uses across the estate including a hotel and events venue, a new, modern civic office and flexible workspace for local businesses.

There will also be opportunities for supporting and complementary uses, which could include later living, leisure, cultural, wellness, community activities and independent creative spaces like microbreweries, entertainment venues and arts and crafts.

The project is forecast to add £66 million to the Matlock economy and £145 million across Derbyshire. It is expected to create around 100 permanent jobs, more than 800 construction roles and apprenticeships in hospitality, construction and heritage skills.

The procurement and planning are being managed by Montagu Evans on behalf of the Council as part of the HLM Architects‑led project team, working closely with Real Estate Works, Browne Jacobson and 31ten.

Richard O’Neil, HLM’s Strategic Director and project lead, commented:

“Smedley’s Hydro represents a rare and significant opportunity to advance a complex, heritage‑led regeneration scheme in close partnership with a forward‑thinking local authority. The launch of procurement invites development partners with the vision and capability to unlock value from historic assets while delivering commercially resilient, socially meaningful, and design‑led outcomes that strengthen the long‑term character and economic vitality of the area.”

Councillor Alan Graves, Leader of Derbyshire County Council, said:

“We are looking for a high-quality development partner who shares our ambition to protect this iconic building and deliver lasting benefits for Derbyshire. This is about investing wisely, attracting private sector expertise and ensuring County Hall continues to serve our communities for generations to come.”

The council will retain ownership of the site and oversight of the scheme, by entering into a long-term development agreement to ensure quality, accountability and stewardship of the historic asset.

County Hall currently faces significant maintenance pressures and high running costs. The redevelopment provides a long-term solution that reduces costs, improves energy performance and brings private investment into Matlock.

A planning application for the scheme is expected to be determined by Derbyshire Dales District Council’s planning committee in the coming weeks, with construction expected to begin in 2027, subject to planning approval and completion of procurement.