The Northumberland Development Company has received a kick-starter £600,000 loan to help it explore the possibilities of transforming a derelict power station site into a business park.
The cash was handed over by the North-East Local Enterprise Partnership from its regional investment fund and will allow the development company — which trades under the name of Arch — to prepare a feasibility study and start basic ground work on the site at East Sleekburn, Blyth which closed in 2001.
If funding can be secured for a full-scale development, it is hoped the Enterprise Zone site will attract marine and offshore industry companies whose presence would create a cluster around the nearby National Renewable Energy Centre and the deepwater docks at the Port of Blyth.
Peter McIntyre is Arch’s managing director. “As a former power station site East Sleekburn obviously has some key infrastructure, but we need to assess the degree to which a regeneration programme will need to be implemented to make the site attractive for further investment,” he explained.
“Our ultimate aim would be to create a major deepwater facility for use by offshore industries and generating significant jobs, investment and partnerships between the Port of Blyth, Narec and the broader Northumberland supply chain.”
Wholly-owned by Northumberland County Council, and managed by a mixed public and private sector board, Arch is an asset-based business which uses the profits from its commercial property portfolio to invest in new projects and develop joint ventures. It has a country-wide remit to attract investment and encourage economic development in Northumberland.
There are currently 10 Enterprise Zone sites within in the North-East LEP’s area. Some are in the final stages of redevelopment with tenants installed and operating. Others, like the Blyth site, are all but abandoned. “East Sleekburn is likely to be a more challenging site to develop and so we need to get this work under way as soon as possible and the North-East Local Enterprise Partnership can help to make this happen,” said the LEP chairman, Paul Woolston.
“We have agreed to loan money from the North-East Investment Fund for all the preparatory studies. That work will reveal what needs to happen to the site to attract business, what infrastructure is needed and what needs to be done to get the site market ready,” he added. The viability study is expected to take at least six months and will be used to produce design development guidance, highlighting the opportunities and constraints of the site.
There was also praise from Arch’s managing director for the Government’s continued commitment to the enterprise zone structure. “We must welcome the Chancellor’s Budget announcement that he will be extending the financial incentives for enterprise zone sites for a further three years,” commented Paul Woolston. “It is a move which will make a big difference in securing investment and locking in the long-term future, not just of this project, but enterprise zone sites nationwide.”
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