Funding blow won't stop Flemingate

A £120m regeneration scheme in the shadow of Beverley Minster will not be delayed by a funding blow, the developers have insisted.

A £23m new campus for East Riding College was earmarked as the first phase of development for the 17-acre former factory and museum site in Flemingate.

But the college, which was lined up as the anchor development on the site, has failed to secure funding from the cash-strapped Learning and Skills Council (LSC).

The consortium behind the regeneration scheme, which will include shops, restaurants, a hotel, cinema, homes and offices, insists the overall development will not be held up by the college setback, however.

They say there is strong interest in the rest of the site from retail operators, housing developers, hotel and cinema operators, which would result in one of those elements being developed first.

The Government is expected to give the green light for the scheme, which would create in the region of 640 jobs, by the end of September.

Guy Evans, spokesman for the consortium - CP Group, Wykeland Group and Quintain Estates and Development Plc - is confident that one of the elements of the scheme will get off the ground next year.

He said: "We are obviously disappointed that the college has missed out on this round of funding.

"The college is obviously very important for us and very important for Beverley and the East Riding.

"It will have an impact but it is only 1.8 acres of this 17-acre site. We will proceed with the retail, residential, cinema and hotel operators and bring in the college as soon as we can."

Mr Evans revealed it is likely that the shops will now form the first phase of the development.

Although the site has not yet been marketed, interested parties have already come forward following the public inquiry into the scheme in December.

Mr Evans said: "We are encouraged by recent meetings regarding strong interest from retailers and strong interest from residential developers, hotel operators and cinema operators.

"Our phase one is most likely to be the retail element."

The developers are looking to get the scheme underway next year, subject to planning approval.

It will be two years before East Riding College, which had hoped to open a new Beverley campus in 2011, will learn if any further LSC funding is available. Meanwhile, the college has vowed to pursue other sources of funding.