Recession puts £65m science park on hold

UNIVERSITY chiefs have blamed the economic downturn and a shortfall in funding for a decision to delay plans for a £65m state-of-the-art science park in the heart of Leeds.

Backers said last year the Innovation City Leeds project could deliver more than 1,000 new jobs and 450 new businesses and bring in millions of pounds worth of private and public investment.

The centrepiece of the plans was a new building on the Leeds University campus which would allow companies, academics, entrepreneurs and business support professionals to meet and exchange ideas.

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Announcing the project last February, a pro-vice chancellor at the university, Richard Williams, said it would help improve enterprise rates in the region and provide "a special opportunity to boost the Leeds economy".

Last night, the partnership behind the project insisted it was still going ahead, but on a later timescale. It had originally been scheduled to be open by 2011.

The chairman of the Innovation City Leeds partnership, Ed Anderson, said: "The partners remain firmly committed to Innovation City Leeds as a gateway to connect businesses and entrepreneurs with academics locally, nationally and internationally.

"New plans will be drawn up in the coming months and we will seek to continue to work closely with Yorkshire Forward."

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The partnership is made up of Leeds University, Leeds Metropolitan University, Leeds City Council and Leeds Teaching Hospitals NHS Trust.

A spokesman for Leeds University said the decision to delay the project had nothing to do with accounting errors revealed two months ago which left it with 20m less than expected at the end of the last financial year.

Under the original plans, Yorkshire Forward would contribute 35m towards the cost of Innovation City Leeds, including 7m from its own funds and 29m administered from European Regional Development Funds.

Leeds University would contribute more than 31m, including 9m in "staffing and other costs" and 26m in "matched level of activity", it said at the time.

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Mr Anderson added: "As time went on, due to the downturn – also there was a shortfall in funding – it just went out of reach. It is very much not dead, because all the partners are enthusiastic about the concept, which we think is really exciting.

"There's going to be a meeting in a couple of weeks to get the partners back together and get ideas pooled for taking it forward. We are upbeat about it."

The project was to have included a "bio-incubator" for business start-ups and spin-outs with 23,000 sq ft of business space in the south-west corner of the campus, subject to planning permission.

Plans also featured a "creativity centre" where company chiefs and academics could meet and collaborate to help improve innovation in the business world.

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Describing the concept last year, Mr Williams told the Yorkshire Post: "In a city, we just don't have the chance to build a conventional science park. We need to do something different. It's almost like a third generation science park. We expect that funding will be provided if we cross the hurdles and bridges."

He said the project would help Leeds University gain additional research income and forge new links with industry on a regional and international level.

Leeds City Council leader Andrew Carter had welcomed the proposals, which he said would "play a key part of the city's strategy for an internationally successful 21st century economy".