Troubled York Community Stadium loses main contractor
The main building contractor has withdrawn from long-delayed plans for an 8,000-seater sports stadium in York.
ISG said it's decision to withdraw from the scheme was due to rising costs and further delays.
A judicial review over plans for the cinema element of the stadium project was granted in October and will not be heard until early next year.
The city's council said it remained "fully committed" to the scheme and a new contractor would be sought.
The stadium development was first proposed in 2009 and construction had been due to begin next April.
It was originally forecast to cost £37m but in March the council said it was expected to cost an additional £7m and not open until 2018.
In a statement ISG said: "We have worked diligently to explore every opportunity to bring the scheme to site.
"However with further delays caused by the judicial review and increasing cost pressures, we have been unable to reach a consensus for the next phase of the project."
The city council said it was continuing to work with its partners to deliver the stadium within budget.
"We have been clear to the consortium for some time that any further costs on the project can only be accepted once demonstrated that it provides best value in the current market place."
The stadium is due to become home to York City Football Club and York City Knights Rugby League Club alongside leisure, retail, office and community facilities.
The football club has declined to comment on ISG's withdrawal from the project.