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The transformation of Redcar seafront moved a step closer as ambitious plans were unveiled for a landmark focal point for creative and digital industries in the Tees Valley.

The Hub, an innovative business centre, will provide an exciting new base for up-and-coming firms to flourish on the site of the former Palace Theatre.

The new facilities will be closely linked to a unique 80ft ‘vertical pier’ which was announced last year, to include 3,000 sq ft of business space, a digital café, and gallery space for digital and commercial arts.

The Hub will provide 35,712 sq ft of business space, including 32 managed offices, along with workshops, studios and communal spaces.

Both buildings are being funded by £2,823,000 from Redcar & Cleveland Borough Council, £2,534,000 from Regional Development Agency One North East, £4,655,110 through the European Regional Development Fund and £940,000 from the Local Enterprise Growth Initiative. This funding will also cover initial revenue costs at both new buildings.

As well as prime office space, The Hub will provide businesses with an array of support and opportunities to thrive in the 21st century. Planned measures include mentoring services through Teesside’s pioneering DigitalCity Business; fellowships with the Institute of Digital Innovation and events and festivals highlighting the burgeoning industry.

The project was developed in the wake of extensive consultation with both the business community and Redcar residents. The area’s existing creative industries sector presently boasts about 300 companies, generating a combined turnover of some £31m – figures that partners believe could be significantly boosted by having a flagship focal point.

Council officials spoke to hundreds of firms during the project’s planning stages and already have 41 expressions of interest in taking up work space in The Hub. The scheme would also address residents’ calls during the Council’s “Love It, Hate It” consultation exercise to bring the Palace Theatre site back into use to benefit the community.

The current building has been vacant and semi-derelict for more than 20 years, with only its shell now remaining, with structural surveys showing that it could not have been retained.

The proposals will go out to public consultation, starting on Saturday, May 22, with planning permission then to be sought and, if approval is granted, a year-long construction programme would start this November. A website charting progress is also being planned.

Mark Hannon, the Council’s cabinet member for economic development, said: “It is well documented that the Borough has been hit extremely hard by the economic downturn.

“However, the Council, One North East and others have constantly been striving to encourage growth in the creative sector that will be vital to its recovery and prosperity in the years to come. The Hub is an absolutely integral part of our plans.”

Sheelagh Clarke, the Council’s cabinet member for culture, leisure and tourism, added: “The groundswell of support for the project from both the business and local community has been extremely encouraging and we look forward to taking the plans to the public for consultation.” 

The creative and digital industries identified for this building are among the sectors that regional partners have identified as having a major part to play in the future of the Tees Valley economy, supporting the public investments being made through the £60m Tees Valley Industrial Programme (TVIP).

The Hub will contribute to the objectives of the One North East Digital Strategy, which is aimed at using the digital technology sector to boost the region’s economy by more than £2bn. The Hub itself is expected to spark the creation of 150 jobs.

Alan Clarke, Chief Executive of One North East, said: “The Hub will be a landmark new facility that will support new creative and digital businesses, create new jobs in these industries in Redcar, and boost the wider regeneration of the seafront.

“It will complement the facilities and expertise at DigitalCity in Middlesbrough and at the University of Teesside, which are putting the Tees Valley on the map for excellence in the digital sector, and will complement our other investments supporting the diversification of the Tees Valley economy through the Tees Valley Industrial Programme.”

Keith Hunter, Chair of the Local Enterprise Growth Initiative (LEGI) Board, said: “I welcome this exciting investment as part of the strategy to diversify the range of businesses we have in Redcar & Cleveland. The LEGI Board supported this investment because it offers a considerable opportunity for a wide variety of new businesses to grow in the exciting and developing creative sector. LEGI is supporting a widening range of new and growing businesses and this new facility will support their future development and success.”

The ERDF 2007-13 Programme is bringing over £300m into North East England to support innovation, enterprise and business support.  It will help create and safeguard 28,000 new jobs, start 3,000 new businesses and increase the region’s productivity by £1.1bn per annum.

This project delivers the Business Growth: Specialist Facilities and Environments product, part of Solutions for Business, the Government’s package of publicly funded business support designed to help companies start and grow.

For information on the wide package of support available to regional companies, call Business Link on 0845 600 9006 or visit www.businesslink.gov.uk/northeast

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