THE company taking over the running of a historic market has secured a loan from the building’s owner to help get the project off the ground.

It was announced last week that Darlington Borough Council confirmed a deal with Market Asset Management (MAM) that will see the town’s Victorian indoor and outdoor markets operated and refurbished by the retail developers.

However, The Northern Echo can reveal that a £1.8m loan was agreed between the partners to ensure the deal was sealed.

The cash will come out of the council’s coffers but the repayments over the course of the loan will return a surplus of more than £250,000 to the local authority.

Using a loan arrangement to attract inward investment is not a new idea for local authorities, similar schemes have been used in neighbouring Middlesbrough and Stockton where the councils have secured loans to attract hotel investment.

A Darlington Borough Council spokesman said: “Cabinet agreed to start a procurement process and selected Market Asset Management (MAM) as its partner. During commercial negotiations it was agreed the Council would provide a loan of £1.8m at commercial rates to assist in funding improvements. The loan was agreed by Cabinet in June. The loan is funded from within the Council’s overall Treasury Management Strategy and its repayment by MAM will produce an overall surplus for the Council of £278,000.”

Following the agreement, MAM revealed plans to extend opening hours of the markets into evenings and weekends and to install a glass frontage along the West Row side of the indoor market.

Public toilets will also be provided within the building with improved lighting and heating, a food court and events space for community use.

The council will continue to own the market buildings, however MAM will be responsible for staffing and maintenance of the markets.

Earlier this week, members of the council's cabinet committee heard the reasoning behind the 100 year lease that had been awarded to MAM.

Councillor Nick Wallis, the portfolio holder for leisure and local environment, said: "They need the security of the long 100 year lease so that they can get the benefits (of their investment) back."

However, Conservative group leader Cllr Heather Scott urged members to remind the public that the proposed improvements would not happen overnight.

She said: "What we have to get across to the public is that they are going to be phased plans and they are not going to happen overnight.

"I think it is important that we get it out to the general public that it will take some time."