A landmark regeneration plan that could create around 1,000 permanent new jobs on the site of the former Diageo bottling plant in Kilmarnock is to include a provision of affordable housing.

Spearheaded by Kilmarnock-based developers Klin Group, the “HALO” Urban Park project has been made possible after the site’s owners, Diageo, pledged £2 million to support the proposed regeneration and to donate the 23 acres of land, subject to the project meeting certain economic and community benefit goals and securing financial backing from central government.

The project will be mainly funded by the private sector and yesterday East Ayrshire Council approved £2m of support.

Klin Group, who were the original visionaries for the Hill Street site and who secured an option to develop the site from Diageo, said the imaginative, brown field regeneration scheme is set to revitalise Kilmarnock and boost the wider economy of Ayrshire.

Plans for the Urban Park proposal that will create a commercial, cultural, leisure and lifestyle quarter for Kilmarnock include:

Capitalising on the site’s rail and motorway links, the HALO proposal will be a phased development that will create around 1,000 sustainable jobs and complement the adjoining newly built Ayrshire College.

The local authority will now seek a further £10m financial support for the scheme from the Scottish and UK governments through the Ayrshire Growth Deal. The HALO project is one of a number of economic regeneration projects the council is putting forward, alongside North and South Ayrshire Councils, for funding totalling £359m through the Ayrshire Growth Deal.

Marie Macklin, chair of Klin Group, said: “Kilmarnock deserves the very best for this iconic site and that is what we are setting out to deliver. We listened carefully to what the people of the town had to say and the HALO Project will provide a fitting and sustainable legacy for the Hill Street site that will last for generations of Kilmarnock residents to come.”

David Cutter, President of Global Supply & Procurement at Diageo plc, said: “We are delighted to partner with East Ayrshire Council to support this regeneration proposal for Kilmarnock. Our ambition has always been to see this site redeveloped to the benefit of the local economy and community.

“Alongside the new college campus which is due to open soon at the site, we believe this regeneration plan will create a positive legacy for Kilmarnock and we hope it will gain the necessary support from the Ayrshire Growth Deal to make it a reality.”

Douglas Reid, leader of East Ayrshire Council, said: “These proposals are a key element of East Ayrshire Council’s ambitions for the Ayrshire Growth Deal and will greatly contribute to the regeneration of Kilmarnock, breathing new life into the remainder of the site previously occupied by the Johnnie Walker bottling plant.”