Almost 100 jobs and 28 new business start-ups are expected to be created following Yorkshire Forward's decision to part fund the construction of a number of high-tech business incubator workshops at Scarborough Business Park.

Yorkshire Forward has contributed £200,000 towards the cost of developing the Scarborough Enterprise Agency (SEA) -led workspace scheme which overlooks the lakes of the adjoining nature reserve.

Extra cash will be provided from European Regional Development Objective Two Funding and the SEA's own resources.

Scarborough Enterprise Agency is a not-for-profit organisation specialising in giving advice and in developing managed workspace units for start-up or growing businesses. It boasts a 98 per cent occupancy rate for its 102 units around the North Yorkshire town.

Andrew Wallhead, head of North Yorkshire at Yorkshire Forward, said that his regional development agency was pleased to be involved with the project which would "kick-start" activity on that part of the site.

"Scarborough Enterprise Agency has a strong record of success in the development of managed workspace units for start-up or growing businesses. We are confident that this announcement will have a positive economic impact in Scarborough and the surrounding area," he said.

Chris Jinks, chief executive of Scarborough Enterprise Agency said: "We are delighted that Yorkshire Forward has demonstrated its faith in this development which will be completed by February 2004.

"The site has space for 20 office units based in a two-storey office block, which will also contain a conference room, training suite and catering facilities. There will be an additional 20 external workshop units to provide facilities for businesses that require high-tech workspace rather than offices. The project is good news for everyone involved."

Updated: 09:52 Tuesday, October 28, 2003