FEASIBILITY studies have been carried out on four sites that could be part of council plans to create a "community of businesses".

North Yorkshire County Council has set up a property grants scheme so new and established businesses can apply for funding to build high-quality workspace.

The £4.7m project struggled to secure funding, but the private sector has contributed £2.7m and an application for the remaining £2m has been made to Yorkshire Forward and the Government Office for Yorkshire and the Humber.

The outcome of the application should be known by the end of next month.

Property development consultancy Knight Frank has identified 48 possible sites for development so far, and four feasibility studies, costing a total of £41,750, have been carried out.

They include Waddington Buildings Limited, in Brompton-on-Swale, where the premises could be refurbished and extended, and Sedbury Stables, near Richmond, where the facilities could be extended by 2,000ft sq and derelict buildings refurbished.

It is hoped potential occupants will be IT or media companies and consultants.

Other sites proposed for feasibility studies include Yore Mill, at Aysgarth, which could be partially converted into workspace units, North Farm Cottage, at Scorton, where a former grain mill would be turned into a farm shop and cafe with business units upstairs, and the former coalyard site, in Leyburn, which could get four business start-up units.

A shortlist of four or five sites will be drawn up when all the feasibility studies have been carried out.

The council's director of business and community services, Gordon Gresty, explained the background to the property grants scheme.

He said: "Property developers, local authorities, businesses and joint ventures are being invited to both develop sites that are suitable for clusters of new and young businesses and small-scale inward investment, whilst allowing indigenous firms to expand their premises and enable growth within the local economy.

"The long-term vision is to develop a "community of business" and that high-value-added industries, in particular knowledge-based industries, have the right premises for their business needs."

County councillors are to discuss the project on Friday.