Details have been unveiled of a £20million investment package expected to generate many more millions for the Oban area.
Argyll and Bute Council intends to create a massive business boost by making road and port infrastructure improvements in Oban, Dunbeg and Barcaldine in Lorn.
The Lorn Arc is a Tax Incremental Financing (TIF) project, where the council borrows money from the Scottish Government and pays it back with business rates generated by the new infrastructure.
The work to be done includes improved access to the European Marine Science Park and Scottish Association for Marine Science at Dunbeg.
Providing councillors with an updated project programme, Fergus Murray, head of economic development and strategic transportation, said £2.75million would be spent on making improvements to Lorn Road and Kirk Road in Dunbeg, and £0.2million will be spent creating a “Dunbeg Gateway”.
A roundabout will be built at the Halfway House Filling Station between Oban and Dunbeg and a new road built to Dunbeg at a cost of £2million.
A South Oban Development Zone will be created using £3million and £5.2million will be spent extending Oban’s North Pier. A further £1million will be spent on the streetscape surrounding the North Pier.
At Barcaldine £4.15million will be spent on pier and road infrastructure and £0.59million will be invested at Oban Airport making improvements to the access and doing work to allow a business park to go ahead.
Mr Murray said: “The focus of the TIF remains on delivering essential infrastructure to unlock private sector investment on a number of identified investment opportunities.
“The council is mindful that the TIF represents a borrowing consent for up to £20million and not a grant. This requires that it be paid back by the Council over a 25 year period with additional commercial rates being used to pay this money back.
“The TIF will only succeed if investment is forthcoming from the private sector and consequently it will rely on partnership working.”