£10m pot could be kick-start for city
Published: 2010-02-10 09:25:13
A £10 million fund could be set up by Derby City Council to get regeneration projects off the ground in the tough economic climate.
The authority would set up the fund by committing £600,000 a year. (Sourced from Derby Telegraph.)
That kind of investment means the value of the fund would be £10m because borrowing enough money to buy a £10m piece of land would cost the council about £600,000 a year in repayments for around 50 years.
However, the council could use part of the £600,000 annual budget to purchase land and the remainder for related services, such as employing people to manage a certain project.
The investment pot would be kick-started by taking £1.5m from reserves.
Officials said they are still working out details of the scheme, but its aim would be to attract investment in the city.
John Cadwallader, chief executive of urban regeneration company, Derby Cityscape, which is spearheading the revitalisation of the city, said: "At a time when other sources of funding are getting much tighter, setting up a regeneration fund would be an excellent move and give the city more control and a better chance of continuing the regeneration programme through the times when private-sector funding is difficult to acquire."
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