AN agreement has seen private companies take the majority of shares in a vast regeneration project.

Teesworks at the former Redcar steelworks covers 4,500 acres – with a master plan aiming to create 20,000 jobs.

Joint venture partners JC Musgrave Capital and Northern Land Management teamed up with the South Tees Development Corporation (STDC) to help deliver the scheme’s ambitions in 2020.

The firms held a 50 per cent stake in Teesworks with the STDC holding the other half.

But documents on the Companies House website now show 90 per cent of shares in Teesworks Ltd rest in the hands of JC Musgrave Capital, Northern Land Management Ltd, and DCS Industrial Limited.

JC Musgrave is led by Teesside businessman Chris Musgrave – with the commercial property firm heavily involved in work at Wynyard Park.

DCS Industrial has Mr Musgrave and Martin Corney at the helm as directors.

Papers show the share changes in a confirmation statement dated December 5 – with the South Tees Development Corporation retaining a 10 per cent stake in Teesworks.

It is understood an updated agreement was signed off by Tees Valley Combined Authority cabinet members behind closed doors at a meeting last month.

STDC board members also agreed to the change.

Tees Valley Mayor Ben Houchen said the move would bring benefits. “Put simply this move allows us to have our cake and eat it,” he said.

“The agreement with Teesworks allows us to secure private cash running into the hundreds of millions of pounds which, due to the legal commitments we have with Teesworks, will be invested in the site, rather than taken out of the taxpayer’s pocket.

“It also removes major liabilities from the taxpayer and puts the burden on our joint venture delivery partner.”

Cash from the government running into the hundreds of millions of pounds have been put towards the former steelworks since SSI closed in 2015.

Officials say the governance structure of the STDC will allow it to retain control over what happens at Teesworks.

Teesworks land was granted Freeport status last year with tax reliefs and simpler customs procedures touted to help create 18,000 jobs in the next five years.

Demolition work has also continued over the past year.

Mr Houchen added: “Since taking control of the steelworks just twelve months ago, we’ve worked tirelessly preparing the site.

“This plan has allowed us to secure investments from global firms like GE Renewable Energy and BP, which is delivering Net Zero Teesside far sooner than anyone thought possible.

“Time is of the essence – we have the opportunity of a lifetime with us being the first and biggest Freeport in the country, but we have to accelerate what we’re doing to capture these opportunities.

“This project is my number one priority for Teesside, as it has the greatest ability to transform our local economy, jobs and local people’s lives.”

The mayor said they hoped to announce “more big news” in the coming weeks.

A spokesperson for JC Musgrave said the “nature and scale” of STDC projects meant the private sector needed to be “at the heart” of delivery, levering private investment and harnessing expertise.

The firm added the site was “flying” and “will soon be the home to many companies who will employ thousands of local people”.

The spokesperson said: “In terms of the commercial agreement between STDC and the joint venture delivery partner, the initial agreement was a 50/50 split. But this has changed recently to a 90/10 split in favour of the JV (joint venture) delivery partners.

“This change reflects the significant capital investment required to complete the site in terms of continued land remediation and preparation to meet future inward investment opportunities and job creation."

“The arrangement will allow STDC as a public sector organisation to benefit from significantly reduced future financial liability, with further private sector investment and the reinvestment of capital receipts from the sale of land.”

An update on the Teesworks site will be offered up by Mr Houchen at the combined authority’s cabinet meeting next Friday.

The steel structure of the £2.1m Teesworks Skills Academy is now taking shape with its opening scheduled for this spring.

Planning blueprints have also been submitted to remediate 150 acres of land at the proposed site of Net Zero Teesside’s carbon capture and storage power plant.

 

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