Council turns to TIF for £73m Ravenscraig motorway link

Aaron Morby 13 years ago
Share

North Lanarkshire Council has submitted a £73m plan to use Tax Increment Funding to build a vital road link to kick-start regeneration of the Ravenscraig steelwork site.

The council hopes to get clearance from the Scottish Government to borrow money against future income from business rates to build a dual carriageway linking the the site to the M8 and M74.

Jim Fitzsimons, chief executive at Capella Group, which is managing the Ravenscraig project, said: “A dual carriageway into the site is essential. Unless we get this infrastructure delivered the next phase won’t happen.

It looks as if tax increment financing is the best way of doing that.”

Ravenscraig ranks as the largest of three Scottish schemes aiming to use the model of financing pioneered in the US.

Edinburgh council is the most advanced and has won provisional approval to use TIF for the redevelopment of Leith Harbour, while Glasgow Council hopes to use the financing model for its Buchanan Galleries project.

North Lanarkshire council leader Jim McCabe added: “We have had positive discussions with the Scottish Government Finance Minister, John Swinney, and we are confident of a successful outcome.”

The first phase of development at Ravenscraig is well under way with the construction of the new £70m Motherwell College campus. The site is also now home to the £31m Ravenscraig Regional Sport Facility and new housing.

The redevelopment will effectively create a small, new town over the next 30 years.

But the £500m phase 2 has stalled which needs upfront infrastructure investment stalled in the economic downturn.

Future phases include plans for a 58,000sq metre shopping centre, more than 185,800sq metres of business development and 3,500 homes.

Latest news

Building engineering services workers accept 7% pay rise

Two-year deal includes a 3% hourly rate rise from October 2024.
3 hours ago

Inland Homes files for administration

Questions remain over house builder's last two years of accounts
1 day ago

Council orders developer to tear down tower blocks

Comer Homes told to demolish occupied towers in Woolwich after planning row
1 day ago

Bouygues UK restructure sees CEO exit

Contractor restructures as Rob Bradley retires
1 day ago

Fit-out firm BW Workplace returns to profit

London and south east fit-out firm sees revenue rebound 50% to £216m
10 hours ago

Tarmac fined £1.275m after quarry death

26-year-old Luke Branston died during maintenance work at Leicestershire quarry
11 hours ago

Galliford Try targets multi-rise affordable housing

Firm fills new role of director of affordable homes
11 hours ago

Barratt to demolish more homes with faulty foundations

Number of homes to be demolished on Cambridge estate rises from 36 to 83
1 day ago

Steel contractor William Hare edges back to break-even

Revenue slides a quarter to £165m as firm records £108,000 profit
1 day ago

Willmott Dixon fails to agree final price for Newcastle leisure job

City council looks for new contractor as budgets under pressure
1 day ago

Bidding to start for civil service’s second home in Darlington

Government Property Agency will invite bids in Q4 for major new Government office complex
2 days ago

Arup and Aecom on board for £1bn Lincolnshire powerline

New high voltage overhead line and substations from Grimsby and Walpole
2 days ago

Plan in for Stansted airport terminal extension

Original Foster design will be replicated in 54m extension towards airfield
1 day ago

Clients consider options after Westridge collapse

£64m turnover contractor now in hands of administrators
2 days ago

Plans in for 800-bed Leeds student and retail scheme

Major scheme will replace The Core shopping centre in the city
3 days ago

Eric Wright Construction returns to profit

Construction division back in the black as strict contract selection pays off
2 days ago

Balfour boss Leo Quinn backs rainbow lanyards

Chief executive vows "visible leadership" on diversity drive
2 days ago

McAleer & Rushe awarded £60m Barking flats job

Work to start in November on near 200 rental homes project
2 days ago

Lancashire Council awards £300m building framework

Carefoot and Conlon secure spots for major building jobs
2 days ago

Housing contractor Real LSE files administration notice

Real LSE part of group formed in 2021 following acquisition of Rydon contracts
3 days ago

ISG clinches £155m Cat D prison expansion

Firm to deliver 780 new places at three existing prison locations
3 days ago

27-storey Salford student tower approved

540-bed student block to be built on former site of McDonalds' regional HQ
3 days ago

Morgan Sindall £48m Dumfries school job approved

Building work to start before the end of 2023
3 days ago

Pagabo starts race for £1.6bn decarbonising frameworks

Two frameworks are anchored by Great Ormond Street Hospital and Hull City Council
3 days ago

Former HS2 chairmen blast plans to scale back scheme

Fears grow for future of UK's biggest construction project
3 days ago

Redrow plans 1,400 home garden village in Rochdale

Construction on first phase could start next year
3 days ago

Bouygues/Murphy JV tipped for £2.3bn Thames tunnel job

Frontrunner emerges for Lower Thames Crossing 4.2km tunnel job
6 days ago

Subbies facing squeeze as main contractors tighten belts

Pay disputes increasing as suppliers fear major contractors returning to "bad old ways"
6 days ago

Portview takes control of Fulham Buckingham stand

Fit-out specialist steps in after main contractor failure
6 days ago

Firefighters probe cause of Leeds modular scheme blaze

Fire broke out in timber frame office job at Citu's eco development
6 days ago

Contractor services