The Scottish Government has given its final approval to Glasgow City Council’s plans to borrow £80m towards a £390m scheme that is expected to unlock the private investments required for the regeneration of Glasgow city centre.
The decision will allow the council to raise cash through a Tax Incremental Financing (TIF) scheme that is expected to raise an extra £310m in private investment for the Buchanan Quarter project.
As per the scheme, Buchanan Quarter, Cathedral Street, George Square and Upper Dundas Street will be redeveloped for Glasgow 2014 Commonwealth Games.
The refurbishment project will also see upgrades to the Glasgow Royal Concert Hall, Buchanan Street and Queen Street station.
Plans include a new 1,500-space car park at Queen Street Station with 35,000ft² of shops and 50,000ft² of new retail development at the southern end of the existing Buchanan Galleries site.
Glasgow City Council executive member for jobs and the economy Bailie Liz Cameron said that the Buchanan Quarter project will continue the regeneration of Glasgow.
"The delivery of the project will bring a massive economic and jobs boost and make our city centre even more attractive to shoppers and visitors," Cameron said.
Scotland Deputy First Minister Nicola Sturgeon said, "This development will continue the regeneration of the city centre, improving the public spaces and creating modern, vibrant new facilities that will cement Glasgow’s position as a major international destination for visitors."
The proposals were approved by the government in conjunction with its Scottish Futures Trust.