Work is set to begin on a major business park for County Durham, paving the way for 4,000 new jobs and a £400m boost to the economy.
Durham County Council is to begin work on the park at Aykley Heads, at Durham City, having already pledged £6m to the project’s first phase.
The remaining £6m phase one comes from the government’s Getting Building Fund, which aims to deliver jobs, skills and infrastructure across the country.
The milestone commencement of work has today been welcomed by the North East Local Enterprise Partnership (LEP,) North East England Chamber of Commerce and Durham University.
The vision for Aykley Heads is to create ‘A Development for a Different World’ – in recognition of the impact of the coronavirus pandemic on the way people work.
It will offer a new and unique business location for the region that maximises economic growth in County Durham and delivers jobs in new and growing sectors.
It is one of five designated strategic employment sites across the county and part of the council’s ambitious mission to provide more and better jobs, bridging the gap in economic performance with other parts of the UK.
Aykley Heads is also evidence of the council’s commitment to keeping major projects on track through the coronavirus pandemic, in recognition of how important they are to the county’s long-term economic future.
The site’s first two phases offer the prospect of a potential 4,000 jobs and it is estimated a further 1,800 will be supported in the construction of the park.
The first phase will see the creation of 3,500 square metres of flexible office space within a three-storey building and 124 car parking spaces to the north of the site.
Work on ‘Plot C’ will begin in the coming weeks with the commencement of groundworks ahead of the construction of the building.
Cllr Simon Henig, leader of Durham County Council, said: “We are delighted to be starting work at Aykley Heads, a key strategic site which aims to deliver thousands of new high quality jobs for County Durham and the North East.
“Aykley Heads will offer ‘A Development for a Different World’ – in recognition of how the pandemic has changed the way people work. It will be a top-class destination for businesses by virtue of its location in a World Heritage City, excellent transport links and also the environment we are creating for staff which will be an attractive and environmentally friendly setting with plenty to enjoy indoors and out.
“We are also very pleased to be working with Durham University to explore how the park can deliver a unique digital offer for occupants.”
The North East LEP is a public, private, and education sector partnership that covers Durham, Gateshead, Newcastle, Northumberland, North Tyneside, South Tyneside and Sunderland local authority areas.
It manages the Getting Building Fund in the North East and has added to the money available by providing £8m from its North East Investment Fund.
Andrew Moffat CBE, chair of the investment board at the North East LEP, said: “The £6m investment from the government’s Getting Building Fund will drive forward the creation of new Grade A office accommodation in County Durham, paving the way for more businesses to join this thriving business park.
“Already home to growing fintech company, Atom Bank, and the North East England Chamber of Commerce, Aykley Heads is one of the region’s fastest growing employment sites, attracting inward investment and creating more and better jobs for County Durham and North East England.
“This next phase in the development of Aykley Heads business park will create an initial 262 jobs and create hundreds more when the building opens.
“Along with the Milburngate development, Aykley Heads has helped position County Durham as a prime location for office space, and a great location to start and grow a business.”
A hybrid planning application for Aykley Heads was approved in December, giving full permission for Plot C and outline consent for the rest of the site.
This includes land currently occupied by the council’s County Hall headquarters, with the authority having agreed to move to a new smaller headquarters in the heart of Durham City to pave the way for the business park.
The new headquarters will provide a base for 1,000 council staff, boosting footfall and trade in the city centre, as well as in Crook, Seaham, Spennymoor and Meadowfield where other employees will be located.
The first two phases of Aykley Heads will when complete provide up to 38,468sq m of floorspace and be divided into six plots, with each providing office buildings and parking spaces. ‘Character zoning’ will be used to create distinctiveness, while green spaces and paths will be provided for the enjoyment of workers, residents and visitors.