Developers could receive taxpayer support of up to £11.7m from the Island Infrastructure Scheme to improve areas of Douglas.
Enterprise Minister Tim Johnston outlined the support for the Villiers Square and Lake Road developments in response to a question from Speaker Juan Watterson.
Mr Johnston said the scheme’s primary purpose is “to unlock the long-term economic potential of unoccupied urban sites, where the development is not considered commercially viable”.
The stated amounts are “the maximum amount potentially payable upon completion”, pending a full independent financial assessment.
The maximum total amount outlined is £11,719,375 between the different developments.
Villiers
The largest formal maximum offer, £9,005,375, is for the Villiers Square project, which is expected to cost The Tevir Group £36,021,503 and is due for completion by the end of 2027.
He said this development “enhances the overall liveability of the area”.
Mr Johnston added: “The development will offer prime office space, ideal for attracting and retaining high-value businesses which in turn will support sustaining employment for existing residents and provide the opportunity for job growth and the attraction of new residents to live and work on the island.
“The development will transform one of the most prominent brownfield sites on the island, which has lain empty for several decades.”
Lake Road
Dandara’s 109 flats planned for Lake Road could see it supported with Phase one offered up to £1,340,000 and phase two £1,374,000.
Detailing the social benefits, Mr Johnston confirmed the Lake Road development “provides 109 apartments in total, which includes six apartments designated for first-time buyers”.
He added: “The development will revitalise a brownfield site, providing housing close to the city centre, supporting retail, leisure and the nighttime economy sectors.”
Agreement has also been reached for a commuted sum in lieu of affordable housing units.
Mr Johnston said: The contribution of £1.1m to the Department of Infrastructure’s ring-fenced Housing Reserve Fund will target the island’s housing needs both in terms of type and location of housing.”
The minister emphasised that “no payments have been made under the Island Infrastructure Scheme to date, nor are any payments anticipated until the developments subject to a formal offer of assistance have reached completion”.
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