Demolition of St Martin's Park buildings went £100,000 over budget
The demolition of the Cummins factory was completed in December.
A council-led development in Stamford cost £100,000 more than expected.
£1.3 million was allocated last year to demolish the former factory buildings on St Martin’s Park, making way for housing and retail.
Additional asbestos removal and other unforeseen work has pushed the cost for the project up.
South Kesteven District Council approved extra funding to settle the final invoice at Tuesday’s Cabinet meeting.
Council leader Kelham Cooke told the meeting: “As a resident of Stamford, it’s fantastic to see the work that continues to go on with this project.
“It will be a real game-changer for the south side of the town in terms of what it will deliver.
“I’m very much looking forward to that progressing and supporting Stamford’s economy as well.”
The finished development will provide 190 new homes, plus a retirement village of another 150 houses, and a series of business units.
The council purchased the land off Barnack Road in 2019, and launched the joint venture with Burghley Estates.
Among the buildings, which have been demolished, is the historic 1904 building, the oldest on site.
It was initially hoped this could be preserved, but contractors discovered it was in very poor condition.
The council was forced to approve demolition before it fell down on its down.
A council meeting in September heard how the structure had been “botched” when a 1960s office building was added, and could no longer stand of its own.
The decision was taken to replace it with a similar building which was available for commercial use.