A developer is poised to buy industrial estate land and “deliver a business park” as a deal was approved by council leaders.

Land at Durham Lane Industrial Park in Eaglescliffe is set to be taken over by Rula Developments in efforts to boost investment, create jobs, spark economic growth and support businesses.

The empty site was bought by the council in July 2021 using £2.8m from the Tees Valley Combined Authority’s Indigenous Growth Fund (IGF).

Chris Renahan, assistant director for inclusive growth and development, told a Stockton Council cabinet meeting: “Since that point we’ve undertaken numerous site surveys to understand both the opportunities and the constraints of the site.”

He told how the preferred developer had been recommended. He said: “We propose to enter into a development agreement which will draw down the land in stages.”

The council’s report says £3m of grant money would be spent on improvements by March 2026 to unlock the land for development. Councillor Nigel Cooke, cabinet member for regeneration, said: “We safeguarded this land a few years ago for a good reason. Clearly we’ve been going through a process.

“I’m really pleased where we’re at today, being able to recommend a developer. That area of Eaglescliffe, it’s key land.

“It’s already home to places like Tata Global Beverages and Nifco’s just nearby. It’s in very close proximity to strategic transport assets like Eaglescliffe station and the work that’s going on there, and also Durham Lane which takes you to the A66.”

Cllr Cooke later added: “This is a very exciting step for a vital employment site in our borough, and Rula have an impressive track record with a wealth of experience and contacts, which gives a massive opportunity to attract investment. Rula are our preferred developer as they match our high ambitions for the site and have demonstrated their ability to operate on similar sites across the country, including Cheshire, Doncaster and Oldham.

“Plus, this will be their flagship scheme in the North East, with no competing sites of their own in the region. It’s yet another demonstration of Stockton-on-Tees being the economic powerhouse of the Tees Valley and we welcome all approaches from interested parties so we can support their ambitions.

“We’re a business-friendly Borough and we’re ready and waiting to welcome you, with a great team in place to support you at every step of the way. We’re also very much here to help our existing businesses thrive and grow.”

Council leader Cllr Bob Cook said it was a strategic industrial site with small and medium-sized enterprises (SMEs) employing many people. He told the cabinet: “It’s a site we’ve been working to develop over the last few years. It’s good that we can move it forward.

“The development company have got a good track record of getting companies on to the site and the more companies you get within the borough, it’s the jobs that they provide.”

The council’s report says: “A preferred developer has been selected to deliver a business park, subject to completion of legal contracts… They have committed to submitting a planning application soon after the agreement is signed and intend to deliver the project on a phased basis.”

The developer was selected as the council’s preferred partner after its track record, finances and proposed scheme were weighed up, and following “competitive dialogue and interviews”, last year. It was recommended by land agents “as they can demonstrate their ability to develop on a magnitude similar to Durham Lane and have a knowledge of end users of a scale and size from outside the North East which would be beneficial to attract to the site.

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“The developer’s ambitions are also more aligned with the council’s in terms of removing obstacles to efficient development, improving the offer of the estate… They have a strong ‘in-house’ and external professional team and the financial information provided also demonstrated that they were the stronger company with greater financial resources to call upon than most of the other parties.

“The development of the strategically important, vacant employment land at Durham Lane will attract inward investment, support existing business growth and allow the council to realise additional economic value as a result of job generation and social value through our partnership approach with the preferred developer. The council is committed to maximising the impact of its public expenditure for the benefit of the local economy, the environment and wider society and communities.”