More than £2 million is being earmarked for a renovation scheme which will provide 90 jobs in the city.

Brighton and Hove Regeneration Partnership and the Regional Development Agency have plans for Westergate House in Moulsecoomb.

They want to spend cash from the Government's Single Regeneration Budget (SRB) and eb4u on new industrial buildings on the site.

Brighton and Hove city councillors will be asked next week to dispose of the lease to eb4u.

The building, which has been vacant for two years, is part of the Fairway industrial estate and more than 40 years old.

A feasibility study in May showed there was strong demand for modern industrial buildings in the city of varying sizes.

Moulsecoomb is an ideal location because it has serious long-term unemployment problems.

City council chief executive David Panter said the idea would be to ask tenants to employ local people before awarding leases.

Eb4u would also advertise the buildings locally with the intention of getting city companies to apply for space.

Mr Panter said: "Unless the Westergate House project goes ahead in the form recommended there is a risk about £1 million in SRB money will be lost to the city altogether."

Tuesday December 02, 2003