Oban Regeneration - The Lorn Arc
The "Lorn Arc" project is an ambitious £20million proposal to extend Oban's North Pier and construct road infrastructure in Dunbeg/Dunstaffnage. The proposal covers Oban, Dunstaffnage, Dunbeg, North Connel and Barcaldine. You can see the Lorn Arc on the attached map -
More information can be found in the attached general briefing.
Argyll and Bute Council has been given approval by the Scottish Government to develop the proposal under the Tax Incremental Funding (TIF) scheme. The submission can be viewed here -
The proposal has the potential to create around 1,000 new jobs in the area, bring huge investment opportunities and infrastructure improvements in the years to come. Please see our press release from 1st November for more information.
TIF scheme - explained
TIF is a method to use future gains in taxes and other relevant income to finance improvements today. When a development or regeneration project is carried out, there is often an increase in the value of surrounding properties, and new investment opportunities are created.
This increased site value and investment generates increased tax revenues. The increased tax revenues are the "tax increment." Tax Incremental Financing dedicates tax increments within a certain defined area to finance debt issued to pay for the project. TIF creates funding for public projects that may otherwise be unaffordable, by borrowing against future tax revenues
The next stage is to prepare a full business case. Part of this process will involve consultation with relevant parties, including local people and businesses in the Lorn area. Progress on the full business case will be posted here.