Isle of Wight councillors approve 'risky' £1m land purchase

Venture Quays supports more than 300 marine sector jobs

A "risky" £1m land purchase to protect marine jobs has been approved in principle by councillors.

Isle of Wight cabinet members backed plans to buy the Venture Quays site in East Cowes despite council officers warning the financial case was weak and the pandemic could cause issues.

The purchase, from Homes England, also includes neighbouring land earmarked for housing.

Isle of Wight MP Bob Seely said he was delighted with the move.

Bob Seely MP said purchasing the site would help protect jobs and diversify the local economy

Mr Seely said buying the site would "preserve part of our economy and enable companies to grow by giving them certainty".

"I welcome this decision and I fully support councillors taking this decision despite the financial situation," he added.

The MP said a Chinese developer had previously planned to build a hotel and a dinghy-stacking facility on the waterfront site, only retaining six jobs in the marine sector.

The council said the current tenant, Wight Shipyard, had created more than 100 "high-value marine manufacturing jobs" and was supporting 200 more in the supply chain.

However, council officers warned the Covid-19 pandemic could lead to business failure and loss of rent.

The purchase includes land near Venture Quays which is earmarked for housing

Their report concluded: "While the strategic and economic case for acquiring the land parcels and buildings at Venture Quays is strong the financial case in the current financial climate is weak.

"The likely recession is the biggest risk... The impact to the economy following the pandemic is still very much unknown."

The purchase also includes Victoria Barracks and sites earmarked for housing on either side of Maresfield Road.

The authority said the deal would be an "enabling project" for the long-planned regeneration of East Cowes.

The price agreed for the site is £1,050,000 and the council also expects to pay a further £230,000 on essential work for the site.

Cabinet members delegated the final purchase decision to council leader Dave Stewart when negotiations with Homes England have concluded.

Mr Stewart said: "Having completed our financial review following the impact of Covid-19, I am satisfied this acquisition still represents significant financial and social value for our island."