A HUGE move to build a new council depot in Scarborough could cost taxpayers £3.69 million.
Scarborough Council bosses are set to thrash out a deal to close the existing Dean Road base and transfer facilities to Queen Margaret’s Industrial Estate.
The move - designed to cut council costs - will see the authority spend £220,000 on consultants to create designs for the new building as supermarket giant Tesco grows closer to starting the development on its massive megastore in Dean Road.
The retail colossus, which won planning permission in December, could begin work in September and is still pushing for an order to close part of Trafalgar Street West.
The new store will create 350 new jobs and safeguard 200 positions and feature a 9,500 sq metre shop floor, with 516-space car park and petrol station.
Scarborough Council’s cabinet are set to meet next week to discuss the proposals which are aimed at maximising budget reductions.
A report from David Archer, the council’s strategic director and Nicholas Edwards, the head of finance and asset management, said the move was a necessity in such an austere climate.
It said: “The depot at Dean Road is substantially larger than the facility now required by the council.
“Therefore, a relocation to a smaller site is needed to better suit the needs of the services which will enable the council to take advantage of modern, more efficient, flexible ways of working; making better use of new technology and therefore reduce running costs and overheads incurred by the council.
“The planning application for the new depot includes a polytunnel and hard standing area meaning if a decision to outsource plant supply is taken, the new depot site will be available to receive plants and be used as a distribution hub.”
The new depot will be built on the former 1.5 hectare Gas Board site in Queen Margaret’s Industrial Estate, which was previously owned by the Skipton Building Society and the report added services housed at Manor Road base could also be transferred to the new site to further boost cash savings.
The report added: “The principal risk is the need to expend money and construct the new facility to provide vacant possession to Tesco upon them obtaining planning permission.
“The council therefore has no option than to commit to the expenditure on design and construction works to facilitate this relocation.
“The Dean Road depot is still too large for the council’s future needs following the termination of the Highways Agency and the relocation is also desirable from an operational and cost efficiency perspective.”
Speaking after the development was granted last year, Deborah Hayeems, Tesco’s regional corporate affair manager, said the company was eager to start work in Scarborough.
She added: “We will be keen to progress quickly and will need top address a couple of matters before we can start construction - relocation of the depot, highway works and discussions with the town about how best to phase our work to reduce impact.
“We are also looking forward to working with the community to ensure many of the new jobs go to local long-term unemployed people.”