Preston City Deal to involve land deal with government

Mon 16th September 2013, 2:36 pm

Lancashire has agreed a City Deal for Preston and the surrounding area, backed by receipts from the sale of property assets and investment from the county's pension fund.

Preston: City Deal agreed with government

The agreement is the first of the second wave of City Deals to be signed, and is aimed at creating more than 20,000 new jobs, 17,420 new homes and up to £1 billion of economic growth.

The detailed plan of the Preston and Lancashire City Deal was signed by deputy prime minister Nick Clegg, minister for cities Greg Clark along with the leaders of councils in Lancashire and the chairman of the Lancashire Enterprise Partnership.

Edwin Booth, LEP chair, said: "Reaching this landmark deal is a real demonstration of central government's confidence in our economic potential.

"The deal enables us to build the infrastructure that Preston needs, which will really take the brakes off economic growth in the city and the surrounding area and continue to create the prosperity and jobs we need."

The deal will see the creation of an infrastructure delivery programme and an investment fund, with a combined value of £434 million.

The £334 million IDP will pay for infrastructure to unlock the development of commercial development and housing schemes, and include up to £37 million from the sale of property currently owned by the Homes and Communities Agency, which will be transferred to a new stewardship board. Four other sites owned by councils in the area will also be transferred to this board.

Lancashire Pension has also agreed to allocate £100 million for investment in commercial schemes in the City Deal area (through the investment fund), with another £50 million to be targeted at the rest of Lancashire.

An OJEU notice for the fund's management will be issued shortly, with the appointed fund manager expected to look at specific investment opportunities in the first quarter of next year.

Councils will also be expected to contribute £211 million of resources over 10 years, from 2014/15, to the delivery programme, along with £72 million of local major transport scheme funding.

View the document: Preston and Lancashire City Deal

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