DEMOLITION of a Basingstoke building which used to be the headquarters of the AA has begun.

Lilly House, in Priestley Road, is being razed to the ground by developer Wrenbridge which is set to build a new logistics development on the site, creating between 250 to 500 new jobs.

The developer submitted an application last year to demolish the empty building and redevelop the site to deliver approximately 206,050 sq. ft of commercial space, including 10,194 sq. ft of office space.

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The building has been vacant since pharmaceutical giant Eli Lilly moved to new offices in Basing View last year, funded partly by the borough council.

It was previously the headquarters of the AA, when it was known as Norfolk House, from the mid-1990s to 2003.

Basingstoke and Deane Borough Council granted permission for the development in July this year, despite concerns from Sport England about the loss of a playing field.

Sport England was consulted on the proposals because the redevelopment will lead to the loss of a playing field on the site, which was marked out with a football pitch used by employees.

It said: “Irrespective of its lack of accessibility and use by the community and the ownership arrangements, Sport England’s role is to protect all playing field land. A lack of use is not necessarily an indication that the playing field is not needed even if it is not specifically reference within a Playing Pitch Strategy.”

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Sport England said it was therefore important for mitigation to be put in place “proportionate to the loss”.

Hampshire FA confirmed that there was no affiliated football use of the Lilly House site.

Sport England suggested that the developer contributes £70,000 towards improved or new facilities at either Everest Community Academy to replace its 3G Football Turf Pitch (FTP) or Costello School to create a new full size 3G FTP, which was the preferred option.

However, it raised concerns about any funding being unallocated and unspent because of a lack of additional funding needed to bring a project forward.

“Our concern is that significant additional funding is required from other partners or sources to deliver the required mitigation, which raises questions about its viability and deliverability,” Sport England said.

It withdrew its objection to the plans in March this year after it was decided that £69,000 would be contributed by the developers towards replacing the pitch at Everest Community Academy.

Sport England said: “It is recognised that the project has the potential to secure benefits for the community sport / football and will ensure that, subject to testing and registration with the FA, the improved facility will be able to make a contribution to addressing shortfalls in provision within the district.”