BACKERS of a major regeneration scheme in Huddersfield expect to make progress on the job-creating project – despite a hold-up in funding.

Developers had hoped to begin work on the Waterfront Quarter scheme at Chapel Hill before the end of 2008 – after Kirklees Council approved outline plans for the scheme last autumn.

The multi-million project calls for new offices, apartments and a campus for Kirklees College on a triangle of land between Chapel Hill, Manchester Road and the river Colne.

Sellers Engineers, which occupies part of the site, would move to another location in Huddersfield as part of the plan.

However, a bid for funding from the college – formed with the merger of Huddersfield Technical College and Dewsbury College – is still being considered by the Learning and Skills Council.

That means the college is unable to progress with plans to move out of its dated New North Road buildings while other elements of the Waterfront Quarter scheme are also held up.

David Armitage, who is chairman of scheme backer Ramsden and Colne Developments and managing director of Sellers, said: “The college has been very gung-ho about the scheme. They are desperate to move into a state-of-the-art facility and the proposal is absolutely fit for purpose.

“However, the LSC have had far more bids for funding to support new-build schemes than they have cash allocated for projects, and they have decided to look at all funding bids during the next few months.

“We believe that Huddersfield can demonstrate the need and present the case that means it gets the green light.

However, the delay means we cannot progress as we had hoped on the rest of the scheme.”

Mr Armitage said there was “tremendous” interest in other aspects of the scheme, including proposals for a 120 to 180-bedroom hotel on the Waterfront Quarter site.

Plans for top quality offices had attracted keen interest from several potential occupiers.

While demand for apartments had collapsed in the current economic climate, regional development agency Yorkshire Forward remained supportive of proposals to create a public square and open up the section of Huddersfield Narrow Canal running through the scheme.

Mr Armitage said Sellers Engineers had also found a site on the Leeds Road corridor and was in talks about moving its 80-strong staff and manufacturing operations to “a more efficient building”.