Up to £100 million worth of private sector funding could be unlocked in Fife over the coming years after plans for a new distribution and business park took a significant step forward.
The Courier can reveal Fife Council’s application for £10 million investment in the re-branded Fife Interchange site in Dunfermline has been approved by the Scottish Government, with the local authority to work with the Scottish Futures Trust on a more detailed business case.
The Fife bid for cash, which has been rubber-stamped by finance secretary Derek Mackay, should help to develop 22 hectares of land just off the M90 at Calais Muir and is expected to provide leverage for further private sector investment of at least £75 million.
The area, which is already home to online retail giant Amazon’s largest UK fulfilment centre, is seen as ripe for further development, and Fife Council believes the benefits enjoyed by the retailer in terms of location, transport connections and workforce availability can be enjoyed by other firms.
Fife’s bid is one of just two applications successful through the tax incremental financing (TIF) scheme, which allows councils to fund infrastructure projects by borrowing against future business rates generated as a result of attracting more businesses into the area.
North Ayrshire Council’s application for £5 million TIF funding to construct roads and services within the i3 Irvine innovation and industry park – a move which could create an estimated 400 jobs there – has also been given the green light.
Mr Mackay said: “This investment in Fife and North Ayrshire will redevelop and regenerate the local areas, making them attractive places to do business, which will unlock significant economic development and regeneration.
“The TIF scheme is just one part of this Government’s innovative approach to investing in infrastructure. Boosting capital spending is key to economic growth, supporting jobs, apprenticeships and helping the Scottish economy.”
The five hectare site to the north of Amazon has been marketed as Calais Muir North and the 17 hectare site to the south of the fulfilment centre has been marketed as Calais Muir South, both of which should complement what’s already on offer in the area.
The former is being earmarked for smaller industrial units ranging from 5,000 to 22,000 square feet, while the latter will have larger units measuring between 20,000 to 60,000 square feet.
Fife Council hopes the impending opening of the new Queensferry Crossing will also help drive the Fife Interchange project forward, with improved transport links seen as hugely important in attracting firms of all sizes to Calais Muir.
Tony Rose, infrastructure director at the Scottish Futures Trust, said: “TIF as a mechanism provides another lever for local authorities to enable and deliver inclusive growth and secure additional levels of private sector investment.
“These two new TIF projects demonstrate great ambition and we look forward to working with the two local authorities to bring their visions to life for the benefit of the local communities.”