The money will help pay for a new building at the college’s Hunslet campus and an overhaul of its North Street site.
The project will eventually allow the college to operate from the two sites and pave the way for its Millwright Street campus.
The college estimates the work will allow it to cater for an extra 190 students and create 25 permanent jobs in addition to 70 from the construction work.
Council leaders on the West Yorkshire Combined Authority have agreed to provide a grant worth almost £12 million and a further loan of £2.1 million which will be repaid.
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The combined authority, which brings together all the West Yorkshire councils and York, is currently negotiating with the Government to take on more responsibilities through a so-called ‘devolution deal’ but chairman Peter Box, the leader of Wakefield Council, said the funding agreement showed it is already having an impact.
He said: “Although we are still waiting for Ministers to agree the West Yorkshire council leaders’ leeds City Region-based devolution deal proposals, the schemes we have agreed at today’s meeting, which include £14m to enable Leeds College project to develop 5,200 squuare metres of new space at its Hunslet Campus and refurbish 2,500 square metres at its North St campus show just how much impact West Yorkshire Combined Authority is having through the first stage devolution powers and Growth Deal we already have in place.”