Watford Borough Council is set to take over the management of a business park in a move which it says will boost investment opportunity in the town.

A proposal to acquire a 40 year lease on Croxley Park will be discussed by members of the cabinet next week, and if agreed, could see the council net around £1.5 million every year.

The council, who own next door Watford Business Park, would have an opportunity to buy the freehold of Croxley Park at the end of the year 40 year period for a fee of just £10.

The council would receive all the rent from every business in Croxley Park but will have to pay CTI a payment of £9.2m every year.

Croxley Park owners Columbia Threadneedle Investments (CTI) approached the council in the summer about the possibility of it taking a lease on the site and following discussions with their financial advisors, officers have secured a deal with they believe will secure the council’s long term finances.

A financial model which has looked at income and costs suggests that in some years, the council will lose money, while in others they will make a profit. Over the 40 year period, it has been calculated the council will generate a net income benefit of around £1.5m per year.

The £1.5m income will go towards improving local services in Watford.

CTI will also give the council an £88m grant which will cover maintenance costs for the site. The council will not have to pay the £88m back.

Managing director at Watford Borough Council, Manny Lewis, says this proposal provides a “long-term revenue stream” for the council.

He said: “We have investigated this opportunity thoroughly and taken expert, independent advice on whether this is the right opportunity for Watford. Following robust analysis and detailed scrutiny of all the figures, this proposal fits well with our strategy to provide a good, long-term revenue stream for the council.

“Very importantly it also secures high quality local jobs in an outstanding business location which is a top priority for the town. We will be able to improve local services such as transport and investment in our facilities.

“We have actually been cautious with our figures rather than optimistic so there is a chance of greater benefit.

“We are absolutely confident in the long term attractiveness of Croxley Park. There are very few business parks with such high quality accommodation within the M25.”

If agreed, the lease would be binding for 40 years, while officers have recommended the fee of £10 is taken up after the lease ends.

The proposal will be discussed at the cabinet meeting on January 21.