Next week councillors will meet to discuss a major investment in Harrogate Convention Centre to make sure it can continue to support the town’s multi-million pound visitor economy.

They’ll be talking about sidelining proposals for development plans, and instead look at more affordable options to bring long-awaited improvements.

Executive director for finance, Cllr Gareth Dadd, who is the authority’s deputy leader, said: “The convention centre is a very important venue for both Harrogate itself and the county’s wider economy, and we are therefore committed to ensuring that it continues to play a key role in the future.

“However, all major projects are being affected by the high rates of inflation and the rising costs of materials and labour.

“We need to make sure that we are providing the best value for money for residents and businesses across North Yorkshire, and we will carefully consider the options that are available for renovating the Harrogate Convention Centre.

“We need to decide how best to take the re-development plans forward while protecting the impact that would have on the public purse and the economy of the town.”

Members of the executive will be told that a two-phase development plan for the building was drawn up eight years ago, with the first stage due to revamp the existing building.

The second phase of the re-development outlined in the plan would see the existing exhibition halls replaced with a new event space, and the overarching project was expected to cost £47 million at the time when the proposals were drawn up.

However, when a business case revealed that the first phase alone was estimated to cost £48 million, the second stage of the development was deferred.

A bid for £20 million in funding from the Government’s Levelling Up Fund proved unsuccessful, and rising costs have meant that the first phase of the re-development is now expected to be in the region of £57.2 million. In addition, there would be lost revenue when the building closed for the wide-ranging programme of work.

Convention Centre Director Paula Lorimer said: “We recognise that there is a real need for investment in the building, but more affordable options should also be explored. Alternative plans that are being considered would prevent shutting large parts of the venue for significant periods of time to avoid the loss of valuable revenue.

“This building is integral to the visitor economy of Harrogate. Its conferences, exhibitions, corporate events, banquets and live entertainment provide jobs and business to the town’s shops, bars, cafes, restaurants and hotels – worth about £45 million a year to the local economy.

“I do back the recommendation that is due to be discussed by the executive, as I have been a long-standing supporter of investment in the convention centre for a number of years and the venue must remain open during the works.”

Paula added that this year’s income from lettings is at the highest level since 2014, and the number of forward bookings is also the highest in recent memory.

She said: “This demonstrates that the venue is doing well, and tactical investment is the way forward to keeping the venue operational.”

However, the building has problems with ageing heating and air conditioning systems and there are also increasing maintenance and utility costs, as well as a layout that presents challenges for many events and conferences.

Construction works to deliver the next phases at Lincoln Enterprise Park are progressing to schedule with 80% of space already reserved.

Located on the A46 near Thorpe on the Hill, Lincoln Enterprise Park is progressing with phases 7 to 10, which will bring an additional 34,500 sq ft to the park and could potentially create up to 100 new jobs.

Following the continued demand for commercial property in and around Lincoln and a successful planning appeal in 2021, developer and site owner LEP Developments commenced works in October last year, acting as both developer and contractor.

With groundworks done, steel frames ups and roofs complete, works to phases 7 and 8 – which are 6,500 sq ft each – are on schedule.

In total, phases 7 to 10 will bring 13 new mixed-use units ranging from 1,451 to 11,500 sq ft to Lincoln Enterprise Park, offering in-demand expansion opportunities for current occupants and new commercial premises for other businesses.

Current occupant and bespoke kitchen and furniture manufacturer, Krantz Designs, has been on Lincoln Enterprise Park since 2020. With its expanding client portfolio and desire to manufacture all its products in-house, the company has bought phase 7 as well as securing the lease of part of another unit as part of phase 9, giving the company a total of 20,000 sq ft at the park.

Managing director of Krantz Designs, Jamie Krantz, said: “With our showroom on historic Bailgate in Lincoln, we currently manufacture about 90% of our products here at Lincoln Enterprise Park, but for some time have wanted to increase that to 100%.

“We had no desire to move from the park as it’s the perfect location for us, is well managed and has a supportive business network, therefore when Nick secured planning for the next stage of expansion, I jumped at the chance to design and build our new HQ.

“We will have approximately 30 skilled team members at the park when we move into our new spaces later this year, which will include CAD technicians, cabinet painters, machinists and office personnel, and we will be recruiting in due course to fill new roles. The team and I are pleased to be continuing our journey at Lincoln Enterprise Park.”

Managing director of LEP Developments, Nicholas Falkinder, said: “At Lincoln Enterprise Park we support economic growth by providing our premium product in a unique and highly accessible location.

“Because of what we have on offer here and the service we provide, we have been fully occupied for over seven years. Jamie and the team at Krantz Designs are a great example of the business community at the park and how we support those businesses through leasehold agreements, then on to freehold opportunities if required.

“From the outset interest in the new units has been high and this resulted in 80% pre-construction sales in just a matter of months. The majority have been taken by existing occupants, which is what we strive for, and we are welcoming some exciting new businesses later in the year.

“I’m passionate about this park and its success, and for the first time we are developer and contractor, which is an incredible journey to be on to both ensure quality and see the progress onsite each day. I want to thank our community of businesses here and everyone who has made these next phases possible.”

Phases 7 and 8 are due for completion in the summer this year, phase 9 in early autumn and phase 10 in early 2025. Two units remain available to rent or buy and are being marketed by local agents Pygott & Crone and Lambert Smith Hampton.

All contractors working on the site are East Midlands-based and include CM Civils, a Lincoln-based civil engineering company which has delivered the groundworks.

Subject to planning, there is scope for further expansion at Lincoln Enterprise Park.