A multi-million pound loan has been signed off to help Doncaster Sheffield Airport expand its car park capacity.
South Yorkshire council leaders and metro mayor Dan Jarvis nodded through the £3.5 million Local Growth Fund loan at a meeting of the Sheffield City Region combined authority at Doncaster’s High Speed Rail College on Monday.
The money will be used to alter the current layout and build two new car parks creating 1,400 extra spaces by the Summer of 2019.
Airport bosses said project was vital for ‘enabling provision for future growth’ and the loan would be paid back through revenue generated through passenger admissions.
The scheme is estimated to create 88 full-time equivalent jobs and is said to bring in 14.2 million to the local economy over 10 years.
Sheffield City Region Officer Melanie Dei Rossi said this worked out as £4.07 being generated for every £1 spent which returned a ‘good value for money for SCR investment’.
She said: “The key risk with this scheme is the tight timescales. The applicant cannot undertake any significant works within the terminal between April and October 2019.
“To mitigate, DSAL is already planning procurement with commencement scheduled as soon as LGF investment is confirmed.
“DSAL will ensure that it has sufficient resources in place to ensure the efficient and effective delivery of the project. SCR can take confidence from DSAL’s commercial imperative to deliver these works before the summer 2019 season which, in practical terms, commences April-May.”
The Local Growth Fund consists of more than £300 million of Government money handed out for certain capital projects in South Yorkshire.
SCR Mayor Dan Jarvis said: "This funding is transformative. It's also a great example of the Mayoral Combined Authority and LEP driving real change for communities across the Sheffield City Region.
"By investing in developments such as these, we will create jobs, attract investment, boost our tourism offer and also continue the SCR's strong track record in building places where people want to live, work and play.
"I said that I would champion our region's visitor economy, build on our region's significant strengths, and seize new opportunities. Today's funding announcement shows that I'm making that ambition a reality."