Hull City Council has unveiled a £1.5 million plan to create a new parade of seven business units at the Boulevard Unit Factory Estate.
Already home to more than 30 small companies, the site is the largest of its type in the authority’s portfolio.
The construction contract has been awarded to York-based William Birch & Sons Ltd.
It will undertake the detailed design work, submit a planning application for the scheme and deliver the construction services, if successful.
Hull City Council’s director of regeneration, Mark Jones, said: “Hull City Council has big ambitions to help fuel the recovery of the city following the Covid pandemic and, to do this, we need to support the growth and development of our fledgling businesses.
“This city has a proud history of entrepreneurialism and these new units will help nurture the next generation of businesses that will create wealth and jobs for the people of Hull.
“We are delighted to be working with William Birch & Sons Ltd and have been impressed with their vision for this development. It will create some fantastic new spaces for businesses and is a vital step forward as we grow and develop the economy.”
It would replace vacant dated buildings latterly used by the local authority as a training centre. They are awaiting demolition subject to planning consent.

The addition, featuring fully glazed frontages, would look out onto Goulton Street, with rear loading bay areas. Neighbours include Airco and Go Hire.
William Birch business development director, Gemma Shahjahan, said: ” We are working closely with the council and our design team, Janus Architecture, to put forward a great design for the new parade.
“It is great news for local businesses, the construction industry and new fledgling start-ups to get a facility like this in Hull, and we are looking forward to getting the scheme through planning and on site soon thereafter.”
A third of the scheme is being funded by Hull and East Yorkshire Local Enterprise Partnership, after it secured £500,000 from the government.
James Newman, chair of the new entity, said: “We are very pleased to see the Getting Building Fund beginning to support business-focused projects across our region and are delighted that Hull City Council has unveiled its plans for the Boulevard Unit Factory Estate.
“These units will, in time, support local businesses to grow, providing new employment opportunities, whilst helping to strengthen our economy at this pivotal time in the region’s post-pandemic recovery.”