Pat Ritchie and David Clouston
AROUND 2,200 jobs are to be created as RBS and Aviva plough cash into land behind Newcastle's Central Station.
In a council-backed deal, the two major finance bodies will pave the way for a new office block and car park as well as kickstarting work on a four-star hotel in the Stephenson Quarter.
City leaders at Newcastle Council bought 10 acres of land in order to unfreeze a development which has been stalled since March 2011.
The £9.7m council land buy-up is being promoted to investors as a key sign that the city is ready to back job creation schemes.
Developer Silverlink will now buy back sections, at market value, as and when it is ready to build.
As part of the overall deal, RBS is spending £20m on the four-star hotel while Aviva is putting its own money into the office block after the council agreed to lease the final site out, making it a safer investment at a time of financial uncertainty.
The site, behind the Grade I-listed Central Station, will include a landmark 251-bed four-star hotel, residential apartments, commercial offices, an art gallery and exhibition space and restaurant facilities.
Council officers insist they are seeking to “preserve the future of treasured historic buildings which were the cradle of the Industrial Revolution” as part of the project.
Phase one will see the Crowne Plaza hotel and conference centre built, although the council insists this is not in conflict with Gateshead Council’s long-running and so far unsuccessful effort to build its own conference centre south of the river.
Work at Silverlink will start immediately with the first phase of the project, including the hotel, due to be completed by summer 2015.
Last night council leader Nick Forbes welcomed the investment. He said: “We have acted decisively, in the face of the economic downturn, to unlock development and help create much needed jobs and growth.
“In doing so we are giving a boost to our economy and sending a message of confidence that Newcastle is a great place to invest in the future.”
David Clouston, chairman and managing director of Silverlink, said: “The commencement of this scheme signals the beginning of a new chapter in Newcastle’s history. We have been working on this for over 10 years and it has required determination and skill.
“We are committed to delivering a new district in the city which will stand alongside any major European city.”
Newcastle chief executive Pat Ritchie said it was vital the council was creating the right conditions for businesses to grow.
She added: “We have worked very hard and painstakingly for three years using our capital resources and prudential borrowing powers to mobilise a powerful public private partnership to unlock a development, create much-needed jobs and build investor confidence in our city as we prepare for the upturn.
“The Stephenson Quarter is a key part of the City Deal being delivered in practice and it will have a powerful, energising impact on business growth in the region.”
No comments:
Post a Comment