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Rochester Airport's expansion plans will continue to be funded by a £4.4m government grant despite fears the project is costing the public too much.
This comes after Medway Council, which own the site, abandoned proposals for a paved runway which put the government-funded South East Local Enterprise Partnership (Selep) investment into question.
Following the agreement from Selep, the first phase of the development at the Maidstone Road airport can resume - which will see the creation of 37 jobs.
Due to unexpected rising costs, private company Rochester Airport Limited had amended its original plans for a paved runway and a second additional hangar.
At the Selep accountability board on Friday, Medway Labour group leader Cllr Vince Maple asked Kent County Council leader Paul Carter if he believed public money should fund this endeavour.
This comes after the top Tory queried why taxpayers' money would fund a private company's project.
Cllr Mark Dance attended the meeting in Cllr Carter's absence and read: "Following the last accountability board meeting, I have met with the leader and senior officers of Medway Council regarding the project and I have had sight of the detailed report and presentation the board will receive today.
"I can confirm my earlier concerns have now been resolved."
Selep chairman Christian Brodie said: “A solution has been identified to manage the increased cost of the project and we have voiced our continued support for this important investment in Medway.
“The project’s outputs may have changed with the removal of the paved runway and one of the proposed hangars.
"However, the amended phase one project, will now make it possible to release land for the development of Innovation Park Medway, and enable the creation of more than 1,000 highly-skilled jobs at the site.
“This funding support will enable the airport to continue operating and lay the foundations for the second phase by releasing 17 hectares of much-needed land for commercial development."
Medway Council leader Cllr Alan Jarrett said: “I am delighted we can move forward with our plans. This is a key step to deliver our new business park as part of the North Kent Enterprise Zone.
"Medway is fast becoming known as a hub for hi-tech engineering and creative businesses, and the plans we have for Rochester Airport will further support this work and our monumental regeneration programme."