THE cost of preparing a Bradford site for a major new business development is likely to be almost £1.3 million more than originally planned - with coal seams and mine shafts blamed for the rising costs.
The Parry Lane Enterprise Zone is a £19m scheme to transform a long vacant site in the Bowling Back Lane area that was once the headquarters of Yorkshire Energy.
It is one of several such zones across West Yorkshire being part funded by West Yorkshire Combined Authority through its Enterprise Zone programme.
The intention is to improve sites that would cost so much to develop that they have stood empty for years - with businesses instead opting to build on much easier to develop sites.
In January the Combined Authority agreed to spend £6.9m on works to improve the site, such as creating access roads and signalised junctions, removing contaminants from the site and the “creation of development plateaus.”
Just over £5m of this funding would come from the Government’s Getting Building Fund - a pot of cash awarded last year to bring forward “shovel ready” regeneration schemes across the country.
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But a new report has realised that this initial cost has increased by £1.290m.
Recent surveys of the site have found the site lies above a number of coal and iron ore seams and mine shafts.
The possibility of former mining operations on the site had previously been given as a reason for the high cost of developing the site.
At a meeting of the Combined Authority’s Investment Committee on April 7, members will vote whether to move to the next stage - delivery of the site works.
If members agree, work could start as soon as next month.
A report to the committee reveals that the increased costs will be met by diverting funds from a different enterprise zone plan - at Langthwaite in Wakefield.
Members of the Investment Committee will hear the Combined Authority is now providing £8.259m for the Parry Lane scheme - with £6.373m coming from the Getting Building Fund.
The outline planning application, approved in August, was for 10 large industrial and business units, creating 25,000 square metres of employment space.
The Combined Authority report says work on the site should be completed by 2025, and would bring 489 jobs to the area.
It says the construction and site preparation works would create 69 temporary jobs.
The report adds: “The costs of the project have increased by £1.290 million since the full business case was approved in January 2021. The increase is due to the complex and significant cost of remediating the extensive coal and iron ore seams, mine shafts and adits.
“The increase in costs at Parry Lane can be accommodated by a reduction in forecasted spend at Langthwaite achieved by the descope of remediation works. Discussions are taking place to identify and secure additional funding to deliver descoped works at Langthwaite.
“The Parry Lane site provides an opportunity to develop new modern industrial accommodation to meet market demand. As this site is brownfield, with evidence of previous mining activity, it needs extensive remediation to enable delivery of a significant new industrial park.”
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