£11m investment boost for Derby city centre
An £11 million investment to bring more life and footfall into Derby city centre has been revealed with Derby City Council set to financially support the pledge.
The investment scheme being led by an unnamed private company would see a number of currently empty buildings bought and refurbished to provide either new residential space, offices, or retail and hospitality units in city centre spots where regeneration work is taking place nearby.
The city centre properties, once completed and occupied, would be expected to generate an additional £100,000 a year in business rates alone for the council, with further income from council tax payments by the new residents.
The news comes after the council’s finances were described as “absolutely dire” with a need for the council to generate wider funds. There has also been reported concern regarding the vast number of empty properties in Derby city centre and the need to bring them back to life.
Derby City Council says it cannot provide details of the properties and company at this stage for commercial reasons. But the company behind the proposed scheme involves property investors with “a track record for delivering commercial and residential properties”, both locally and nationally.
At a cabinet meeting next week (Tuesday, September 12) city council leaders are being asked to “approve in principle that a loan of £1.3m is advanced to the applicant (private company)”. The loan would have a five-year repayment term and would be fully drawn by January next year.
A council report states:
“Providing a £1.3m loan fully repayable by year five on commercial interest rate terms is expected to unlock an investment of circa £11m in prominent city centre properties, based on the developer’s proposals. As well as the direct benefits to the city, business rates etc., there will be several additional positive impacts such as improved street scene, knock-on effect to connecting streets and both daytime and nighttime foot-flow improvements.”
The council states in the report that the money for the loan would come from the budget to create the new Eastern Gateway (East Street improvements) following a review of costs. It adds: “The council is currently in the process of reviewing the scheme costs and funding package for the Eastern Gateway scheme in conjunction with our development partner, and have already determined that the £1.3m can be released from the scheme budget, with any further changes required to be reported to a future cabinet (meeting).”
Councillor Nadine Peatfield, cabinet Member for the city centre and regeneration, said:
“We’re committed to working with our partners to enable fresh and exciting ideas to put the heart back into our city centre. The council’s financial position means we need to make sensible, strategic decisions to support partnership investment in order to fulfil our vision for Derby city centre.”