A major housing project has moved another step closer to completion after the council has been given the go ahead to provide funding for the scheme.
The latest decision from HM Treasury will enable the council to provide funding for the Little London, Beeston Hill & Holbeck PFI project and move closer to the final sign off of the project.
At a meeting of the council’s executive board on Wednesday the 18 July a decision was made for the council to plug the funding gap left when one of the lenders withdrew their support for the project. The treasury has now approved this new funding arrangement which will enable the key development to continue. The other lenders for the project have extensive experience of supporting similar projects and still remain committed to providing funding for the development.
Councillor Peter Gruen, Deputy Leader and Executive Board member with responsibility for neighbourhoods, planning and support services said:
“This news is excellent, and moves us one step closer to obtaining final sign off on the project.
“This inner city area of South Leeds has been waiting for many years for major investment to improve housing and the local environment. We have remained determined that this project continues and we will continue to work as a key partner to support the delivery of this work.
“In light of one of the lenders pulling out of this project, it is excellent news for the communities of Little London, Beeston Hill and Holbeck, that the Council’s contribution to this project will enable this essential development to move towards a start on site later this year.
“The enormous difficulties that the project team has experienced in terms of securing lending from banks for a blue-chip project clearly demonstrates why it remains challenging for small and medium size businesses in Leeds to secure lending.
“This project will bring much needed improvements to these three key regeneration areas including: new and refurbished council homes, local environmental improvements and developments which will improve community safety.”
Note to editors
The Little London, Beeston Hill and Holbeck PFI project is one of the largest regeneration investments in Leeds and is one of the largest housing PFI projects in the country.
This development will bring improvements to existing Council homes and the construction of new Council homes for rent. Neighbourhoods across Little London, Beeston Hill and Holbeck will benefit from environmental and community safety improvements. In addition the benefits of this investment will be seen more widely with employment and training opportunities for Leeds residents.
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Cat Milburn, Leeds City Council press office (0113) 247 4450