Funding bump for new Hollington business centre project

On Monday (February 8), Hastings Borough Council cabinet members gave their support to  proposals related to the construction of a two-storey business centre at the Churchfields Industrial Estate in Hollington – a scheme which was granted planning permission in June last year.

Initially expected to cost around £3.3m (a figure which included £800,000 of external grant funding), cabinet members backed spending a further £1.2m on the project. 

Peter Chowney, cabinet member for finance, said: “This is a scheme we approved some time ago originally, but it has got some additional costs to it. Those are related mostly to making sure it is a very high environmental standard.

“We are of course a council that was one of the first to declare a climate emergency and  we will do everything we can in our new buildings – and anything we do – to make sure it is of the highest possible environmental standards and the lowest possible carbon footprint.”

He added: “It is more expensive, but I think it is worth it considering the fact that we would be getting a much better building in terms of environmental standards, the impact that has on the council’s carbon footprint and how it helps us to achieve our action plan resulting of our declaration of a climate emergency.”

While supported by cabinet, a final decision on increasing the project’s funding will be put to a full council vote as part of the budget-setting process.

Under the currently approved plans, the building would comprise 28 business units, as well as training space and shared amenity space. It would also have space for roof-mounted solar panels.

Once built, the business centre is intended to be used as a business incubation complex, meaning it would have facilities to support the growth of new business ventures from start-up to maturity.

If extra funding is approved, altered plans would be expected to include greater energy efficiency measures, as well as works to “unlock future development potential.”

The council says it would also offer skills, training and jobs in new growth areas of green technologies and supporting industries, which could mitigate the impact of a  “post-pandemic recession”.

The increased budget also comes in light of the potential for additional government funding for the project. 

In a report to cabinet, a council officer said: “The scheme has been included as ‘a shovel ready’ project in the Town Investment Plan (TIP) submission to Government for funding as part of the Town Deal programme. 

“The TIP identifies that investment in the town’s employment and enterprise infrastructure is essential to drive economic growth. 

“Whilst none of the funding requests from this programme can be guaranteed at this stage, the additional £750,000 ‘ask’ for this scheme would significantly reduce the council’s overall costs.”

Increasing the budget does come with some risk, however. If the council is unsuccessful in bidding for the TIP funding, the council says it will have to borrow the full £1.2m itself, which would cost the council around £38,000 per annum in repayments.

If the £750,000 TIP funding does come through the loan cost would fall to £14,000 per annum.

Council leader Kim Forward said: “This is a very, very exciting development in one of the most deprived areas of our town.”

A final decision on increased funding will be made as part of the budget meeting on Wednesday, February 17.