A government grant scheme designed to encourage the development of brownfield sites has opened for a second round of applications.

The Department for Enterprise’s Island Infrastructure Scheme, which opened for the first round of applications between January and April last year, provides up to 25% funding in support of revitalising unoccupied urban sites that have lain empty for many years and are not financially viable to redevelop without additional support. It has resulted in £90m of private sector funding being pledged in support of substantial regeneration.

Four schemes have benefited from funding from the scheme so far.

The latest is the next phase of its Quay West development for which homebuilder Dandara was given planning consent last month.

A total of 109 apartments will be built on a riverside site off Lake Road that was once a sawmill but latterly has been used as a car park. Just six of the flats will be for first time buyers and Dandara will pay £1,100,750 towards the government’s housing reserve fund in lieu of providing any more. 

Funding support for phase two of Quay West scheme has been approved in principle by the Department for Enterprise. Under the agreement, up to 10% of eligible costs, excluding land, will be payable upon completion. The other brownfield redevelopments that are being supported through the Island Infrastructure Scheme are Villiers Square and Lord Street in Douglas and the former Ocean Castle Hotel site in Port Erin.

Villiers Square has already secured planning consent and the other two first round projects are going currently through the planning process. DfE says the scheme aims to unlock the economic and social value of unoccupied urban sites, by providing financial support to offset additional costs faced when redeveloping brownfield sites.

Similar to the initial phase, round two of the scheme will provide financial assistance of up to 25% of eligible expenditure to developers, by way of a grant towards development projects that meet specified criteria.

The aim for the second round is to encourage more residentially-led developments, supporting government’s ambition to have 1,000 additional homes occupied by the end of 2026.

However, applications that demonstrate real economic opportunities and increase the vibrancy and social offering of the island can also be considered. 

Enterprise Minister Tim Johnston MHK said: ‘Through the first round, we have seen the potential this scheme can bring to the Island, with targeted investment from government spurring regeneration and investment from developers for sites that have remained empty for years.

'Some £90m of private sector funding has been pledged in support of substantial regeneration, with government support conditional and payable only after completion of any schemes. This therefore is a really clear way of stimulating and supporting commercially viable development and leveraging private sector expertise and investment as laid out in the Economic Strategy.

‘We are opening the second round for 12 months to encourage private developers to come forward with applications to regenerate unoccupied urban sites and stimulate private sector investment into the island.

‘So far, two applications of leisure, commercial and mixed-use developments have been approved in principle through the scheme and two applications for solely residential.

‘The majority of applications look to revitalise the lower Douglas area, enhancing the vibrancy and social offerings in the city centre.

‘For this second round, it is hoped that we can bring forward developments located across the island and encourage regeneration of unoccupied urban sites most appropriate for residential developments.’

Applications for round two of the scheme opened this week and will close on June 30 next year.