New £20m fund aims to kick-start stalled regeneration

REGENERATION projects stalled because of the recession could be given a lifeline after Birmingham City Council approved plans to fight for £20m worth of European funding.

The council’s cabinet has rubber stamped the mission to bid for money from the European Regional Development Fund and is hoping to team up with authorities across the West Midlands to secure further fresh investment.

The project is seeking to establish a fund through the ‘JESSICA’ initiative – a Europe-wide framework which uses revolving urban development funds whereby returns from projects are reinvested into future schemes.

JESSICA targets projects which would not usually proceed because they could not attract the required finance from the open market.

It is proposed to bid for up to £20m ERDF money which will be matched by £10m of cash from Birmingham City Council and provisionally £10m worth of sites.

These would most likely come from the Homes and Communities Agency which is set to inherit a range of sites in September from Advantage West Midlands.

The proposed ‘JESSICA’ fund scheme has been developed with partners from across the West Midlands region which have been asked to supply letters of commitment.

There have already been acceptances in principle of joining a partnership from councils in Coventry, Dudley, Sandwell, Solihull, Stoke, Walsall and Wolverhampton and the HCA.

The £40m will help with the development of business accommodation, office and industrial projects and specialist facilities for organisations to operate from across the West Midlands, not just in Birmingham.

In order for the initiative to take place, partners must be able to demonstrate the demand for projects and how they are eligible for investment.

A viable project must be capable of producing capital or revenue returns and the funds must be committed to these projects by 2015.