The city council has entered into a collaboration agreement with Lancashire County Council to progress plans that could unlock land for up to 9,000 homes to the south of the city.
At a meeting last week, Lancaster gave its support to the county council to accept the £140m Housing Infrastructure Fund cash.
The money would pay for infrastructure improvements, such as upgrading roads and public transport links, paving the way for the delivery of projects including the 5,000-home Bailrigg Garden Village and the development of a new campus at Lancaster University.
The Housing Infrastructure Fund is a £5bn government programme managed by Homes England on behalf of the Ministry of Housing, Communities and Local Government.
Its purpose is to unlock the building of new homes where the key barrier to development is the lack of strategic infrastructure.
Specific schemes in Lancaster earmarked for the HIF award include:
- The creation of a new link road between the motorway and the A6 to relieve congestion in Galgate
- A new bridge under the West Coast Main Line to enable highway access to the Bailrigg Garden Village site from the south
- A spine road running through the centre of the proposed garden village site
- A new bridge over the Lancaster Canal to link two potential development sites within the proposed garden village
- Substantially enhanced public transport links between the Lancaster University, the garden village and Lancaster city centre.
Lancaster agreed to support the HIF award despite push back from some councillors.
Green Party councillor Caroline Jackson, leader of Lancaster City Council, opposed the plan, but it was passed thanks to support from Labour and other parties.
Lancaster City Council has no overall majority.