COUNCIL chiefs have approved a multi-million pound investment to enable the development of a new car park at Birchwood Park.

The Labour-run authority bought Birchwood Park for £211 million in September 2017.

During Monday’s cabinet meeting, it was confirmed that it is forecast to deliver £5 million of net income this year.

Planning consent has previously been secured for a new 1,000 space multi-storey car park at the site, which is proposed to free up further development land.

This will also enable development of a plot currently used as surface parking, on Daten Avenue, for a new 94,000 sq ft unit before it can be let.

The development cost is around £21.37 million, with an annual new net income return of around £571,000 per year.

During Monday’s meeting, the cabinet approved the borrowing and investment of £21.37 million to acquire new units in the Birchwood Park Trust and enable the development of a new multi-storey car park, as well as the development and letting of the plot for a new unit.

The council is using its powers to enable this further investment to acquire additional units in the Trust.

A cabinet report said the business park is effectively owned and controlled by the Trust, of which the council effectively owns all the units.