Council to agree borrowing to support £18m of government money for Levelling Up projects
A council is set to agree the borrowing of nearly £4m in match-funding for £18m of Levelling Up money.
Shropshire Council's cabinet is to discuss the government award for Shrewsbury at its meeting on Wednesday, April 19.
The money, a total of £18.7m, was awarded to the council by the Department for Levelling Up and Communities in January.
The majority of the total will go towards starting work on major plans to re-develop the Riverside area of Shrewsbury – including demolition work.
The rest will be for the council's plan for 'Transforming Movement & Public Spaces in Shrewsbury'.
Cabinet members are being asked to approve the authority's contribution of 21 per cent towards the projects.
The report to be considered states: "The successful bid awarded £18.701m of Levelling Up Fund Round Two grant funding to the projects against which the council is required to contribute £5.043m of match funding (21 per cent of total project costs) towards the two projects within this application."
The first would be £4.615m in relation to Smithfield Riverside Redevelopment Programme and £428k in relation to Transforming Movement & Public Spaces in Shrewsbury.
The contributions will comprise land and asset contributions totalling £1.25m and cash-match contributions of £3.793m, totalling £5.043m.
The cabinet will be asked to sign off on financing of the council’s cash match-funding requirement of £3.793m from borrowing – costing £269k a year.
The plan for Riverside is described as "transformative" by the council.
The scheme would see the demolition of the Riverside Centre, as well as the nearby Raven Meadows multi-storey car park, bus station and Pride Hill Shopping Centre – which closed last year.
In their place will be a new leisure site, with intentions for it to host a cinema, a new multi-agency base or 'Shirehall', a 'transport hub', up to two hotels, offices, and up to 270 homes.
A main feature of the plan is improving the public space, providing a destination for people to visit.
Estimates from the council say it could lead to another 750,000 people visiting every year, as well as creating 2,000 jobs.
It could also include a quayside running along the bank of the River Severn, as well as a new footbridge to replace the current one from Frankwell Car Park to Riverside.
The council report says the Levelling Up funding is key to getting the project off the ground.
It states: "Acceptance of this Levelling Up Fund Round 2 award will be a catalyst for transformation and regeneration providing significant investment in the town centre.
"Delivery of the demolition and enablement works will bring forward significant elements of the Phase 1 Shrewsbury Town Centre Regeneration (STCR) programme and enable subsequent phases to be accelerated."
