AN EXTENSION of Middlesbrough’s Holiday Inn Express into the rundown Permanent House can move forward following the approval of a £1.25m loan.
Middlesbrough Council has agreed to lend the money to the developer Ashall Projects Ltd on condition of a seven-year payback agreement with a 5% interest rate.
The deal means further regeneration of an unused town centre property and a profit for Middlesbrough to the tune of £380k.
Additionally, the developer is also hoping to develop a cluster of food and drink outlets to further increase the town centre offer.
A report to the Council’s Executive outlined how the refurbishment of Permanent House, on Albert Road, would create 20 full-time construction jobs for nine months to a year with work beginning next month.
A further ten full-time jobs could then be created in the extended hotel, with a possible 20 more in any restaurants or bars that followed.
The Council previously lent £5.8m to Ashall towards the £12m refurbishment within the Cleveland Centre to create the 138-bedroom hotel.
All payments for this original loan have been paid in time and in full. Ashall will also be investing £1.25m into the extension.
Middlesbrough’s Deputy Mayor and Executive Member for Regeneration, Cllr Charlie Rooney, said: “The Holiday Inn Express has proved to be a huge success for Middlesbrough and has transformed the look of Albert Road from Centre Square.
“Additionally, investments like this bring jobs and more people into Middlesbrough, which in turn lead to more investments, such as new bars, restaurants and shops, which lead to more jobs, more business rates for the town and on it goes.
“So while we who live in the town may not need hotels to stay in, they play a huge role in growing the local economy which benefits us all.
“It will also be pleasing to see the renovation of Permanent House which is currently not a particularly attractive sight and also shows the increased confidence in Middlesbrough as a place to be and do business.”