Financial benefits from a large housing development near Oban could be as high as £179 million.
The figure has been revealed in the first draft of an independent report commissioned by Argyll and Bute Council.
Hundreds of new houses at Dunbeg, plus new shops and restaurants to serve them, will create a huge economic boost to the area.
Details of the report will be considered at the council’s Policy and Resources meeting on Thursday.
Councillors will hear that consultants Stantec have been appointed to study the Dunbeg development.
The project by Link housing group will eventually have 600 new homes. It will be served by shops, new roads and a roundabout from the A85 Oban to Perth road.
Economic Impact Assessment: Dunbeg developments
And the study into its economic impact considers both the commercial area and the wider Dunbeg developments.
The new commercial area and phase four of the housing will be served by a junction and distributor road from the A85.
It will include a mixture of around 430 units to include for affordable rent, shared equity, elderly living, student accommodation, mid-market rent, private plots and private sale.
Retail offerings in the commercial area will be food and non-food. A hotel, restaurant, leisure, community, and other business-related uses are likely to fill the area.
A park-and-ride facility is also being considered, Link group said.
Job opportunities are being provided through the University of the Highlands and Islands (UHI) as part of the project.
The first draft of the economic report has been received by the council and circulated internally.
Adrian Jackson-Stark, Oban regeneration project manager, reports to Thursday’s committee. Mr Jackson-Stark reveals details the economic impact assessment.
He writes: “A first draft of this report has been received by the council and has been circulated internally for comment. This indicates a Net Potential Benefit from the complete Dunbeg development of between £50m-£179m depending on the options and timing of development.”
The latest phase of housing (phase three) is to be completed by spring next year, bringing the number of houses to 375.
And early in the new year, Link will submit its next round of planning applications for phase four. They hope to be on site early in 2024.
Transport Impact Assessment will decide – a roundabout or a junction?
Ongoing studies and design work are being completed as part of these applications.
There will also be a detailed Transport Impact Assessment (TIA). This has been considered jointly with the council and Transport Scotland.
The Scottish Government agency will issue consent for any new junction on the trunk road.
It is expected that a roundabout or junction will be sited near the Halfway House filling station.
And a separate application by a private developer for a hotel and leisure centre has been waiting for this roundabout before proceeding.
The transport assessment will decide the nature of the junction and potentially other elements on the planning applications.
Summing up, Mr Jackson-Stark writes: “Various consultants’ reports are being commissioned to establish the likely economic impact, costs and commercial demand for this project. Link group have continued to make progress for the submission of the necessary planning applications.”
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