A £9m loan to kick-start major regeneration will give Kirklees Council a good return, a councillor has said.

Kirklees Cabinet agreed to an updated Capital Plan which includes the potential for a £9m loan to start work on the HD One regeneration around the John Smiths Stadium.

After the Examiner story last week prompted public comments about council cash being spent on the project, Clr Graham Turner, Cabinet member for Resources, explained the reasons behind the potential loan.

He said it would be “good business for the council” and Kirklees taxpayers as the loan would be at commercial rates and give the council a good rate of return, plus lead to regeneration and jobs.

Clr Turner added: “The HD One project will create many jobs and regenerate that part of Huddersfield and draw in people form a large area to spend their money in our town. We need jobs for our residents and a cultural offer that makes people want to come and live in this part of God’s own county – this project will deliver all these.”

The loan is currently an option to be explored at this stage. It would be made to Kirklees Stadium Development Ltd (KSDL), which runs the John Smiths Stadium.

KSDL shareholders are Kirklees Council, Huddersfield Town (both with 40% shares) and Huddersfield Giants (20%).

It’s not yet known what will form phase one of the HD One development, but the overall plan includes a snow slope, hotel, retail, restaurants and leisure facilities as well as apartments.It is predicted the whole scheme will bring £100m of investment to Huddersfield.

Approval of the Capital Plan also includes £151m of investment in schools, highways and transport, town centres and markets, parks and open spaces, among others over the next five years.