Newcastle Council to help kick-start Science City project

May 21 2009 by Adrian Pearson, The Journal

SCIENCE City bosses are being forced to spend £23m on the scheme after recession-hit companies said they could not find cash for it.

Planners are claiming the economic downturn has forced some of the UK’s leading science companies to step back from Newcastle’s flagship regeneration scheme.

Council leader John Shipley last night said the city had no choice but to build a "Science Gateway" office block on the old Tyne Brewery site now, or risk delaying the project for years as they wait for an upturn in the economy.

It comes after officers at the Newcastle and Gateshead city development company went to the three Science City partners, One North East, Newcastle University and the council, and said there was not a single new investor likely to come forward.

Instead, spending bosses at Newcastle Council are hoping the Government will let them borrow up to £8m for their share of the scheme , with the money paid back through the increased business rates Science City generates.

Between them the partners will now have to find an extra £8m each, with up to £15m for infrastructure work to prepare to the site for any eventual investment.