Derby City Council is stumping up hundreds of thousands of pounds to help support the regeneration of the area around the city railway station.
The council cabinet has approved plans to loan £500,000 to government-owned property and regeneration company London and Continental Railways (LCR), so that it can buy Midland House, which is near the station.
The council hopes the acquisition could spark significant regeneration of the Railway Conservation Area – and create a more attractive gateway into the city centre.
Midland House was built in the early 1870s as the headquarters of the Midland Railway, and sits on the western side of the station along with the Midland Hotel and some remaining railway cottages.
It is currently owned by the Department for Levelling Up, Housing and Communities (DLUHC) who have declared it “surplus to requirements”.
The former industrial land between the River Derwent and the railway lines on the east side of the station has already been developed into Pride Park, which is home to a number of rail-related businesses, including East Midlands Railway.
The council hopes the sale of Midland House could spark a similar transformation to the west side of the station.
The station was last year given HS2 East status and forms part of the HS2 Growth Strategy for the East Midlands – assuming the high speed network gets this far.
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LCR is owned by the Department for Transport (DfT) and works in partnership with councils, Network Rail and Homes England.
The company has invested millions transforming underused public sector properties, particularly around railway stations and transport hubs, into new destinations. They include a new business park at the former Rail Technical Centre in London Road, Derby.
Council leader Coun Chris Poulter said: “The opportunity to support the purchase of Midland House, an important building in close proximity to the station, is really good news.
“Any step towards the improvement of the area around the railway station is most welcome.
“This is another example of how we have supported regeneration development in the city.
“The investment should tie in well with other improvements expected, through developments around main stations within the HS2 programme.
“Before Easter we should know where the headquarters of Great British Railways will be located which, if Derby is indeed selected, would further add to the potential improvements, to what is a crucial development area of Derby."
The emerging regeneration masterplan for the station area will be the subject to public consultation, as will any subsequent planning applications associated with Midland House and the wider area.