Cardiff Bay was developed in the 1990s. A new public square and new link road, Lloyd George Avenue, were conceived by the Cardiff Bay Development Corporation (CBDC), using a PFI scheme that will cost taxpayers £189 million over 25 years.[1] There was a commitment to provide at least 356,000 sq ft of commercial office space. Initial stages were completed by October 2000 (when Lloyd George Avenue was officially opened).[2] When CBDC was wound up in 2000 the project became the responsibility of the Welsh Development Agency.[2]
Initially named Bute Square, in 1998 the development had been considered as a location for the new home of the National Assembly for Wales. It was rejected because of the risks associated with a complex PFI scheme. There were also concerns the site would be too small and dominated by traffic.[3] In March 2000, there was a three-month suspension and review of the project, in which Bute Square was one of three alternative locations considered;[4] the preferred location continued to be in Cardiff Bay next to the Pierhead Building, which became the Senedd building.
A new commercial office scheme was also developed on the square by property company MEPC. The first phase, a 145,000 sq ft office building completed by 2002, was named No 1 Bute Square.[6]
In January 2011 it was announced that Callaghan Square could become the site for a new convention centre.[8] In March 2011 a report revealed plans to re-route the roads and junctions surrounding the square, possibly replacing the Herbert Street railway bridge, removing the road to the north of the square and adding a dedicated bus lane. The work was expected to start within 12–18 months.[8]