"THE future starts here," announced outgoing Mayor of Weymouth and Portland Joy Stanley as she joined other officials aboard a mechanical digger at Osprey Quay, Portland.

Witnessing the start of work on Dorset's biggest regeneration project was one of Mrs Stanley's last public duties as the borough's civic head yesterday.

She remarked that it was particularly exciting to see work begin to turn the former Royal Naval Air Station into a site that is key to the region's economic development.

Until its closure in 1999, RNAS Portland was a major centre for naval helicopter operations, and when the Navy withdrew, it was seen as a major blow to the local economy.

More than 3,000 jobs were lost when the Ministry of Defence and Royal Navy pulled out of Portland and there was real concern about how the area could get back on its feet.

The former air station was acquired from the Crown Estate and the MOD in the early part of 2000 by the South West England Regional Development Agency (Swerda), and the focus is now on its future development.

The 80-acre Osprey Quay is a large flat-serviced waterfront site and is hailed as an important flagship development offering a unique opportunity for investors and employers.

The regeneration of the site includes:

Marine leisure uses including a Sailing and water sports area, a sailing academy and outdoor education centre

Facilities for improved coastguard search and rescue services including a new hangar and helicopter runway

Northern employment area including boat-building workshops operated by Luhrs Marine

Southern employment area including business units

Land for up to 77 new homes

Mixed use of leisure and tourism site adjoining Portland Castle including a visitor attraction, marine craft workshops and a possible hotel development

Areas for public open space and recreation including playing fields, new footpaths and cycleways

Community area including a nursery and children's play area

Swerda invited councillors, council chiefs, business and community leaders to Osprey Quay as work began to put the infrastructure in place.

The first phase of work, costing £3million, will involve the construction of a new roundabout on the Portland Beach Road at the northern end of the site adjacent to the Mere Tank Farm. There will also be new roads, flood protection works and re-routing of service pipes.

The main contractor for the works is Southampton-based firm Nuttall and the first phase is likely to be finished by Christmas.

Welcoming guests to Osprey Quay, Swerda deputy chairman Jeremy Pope said he felt very proud - not only as a board member of the development agency but also as a Dorset man - to be associated with the project.

He said the former air station site was Swerda's first investment project in its own right, and it had involved a major planning exercise linked with an intensive consultation exercise.

Mr Pope said the redevelopment at Osprey Quay met nearly all of Swerda's five policy objectives - to further economic development and regeneration; promote business efficiency and competitiveness; promote employment; enhance the application of skills relevant to employment; to contribute towards the development of the South West.

Mr Pope added: "There's much to be done and much to be gained. Today is the end of the beginning and I would like to thank everybody involved for their support, especially the community of Weymouth and Portland."

The borough council has been working closely with Swerda. Planning permission was recently granted for the infrastructure works and the master plan for the site has outline planning permission.

Director of environmental services at Weymouth and Portland Borough Council Richard Burgess said: "I am very pleased to see things are underway.

"There's certainly been some serious money spent in regenerating the air station and this work represents a significant milestone in the development of Osprey Quay.

Portland town councillor and former borough mayor Sandra McGown said: "I always said that the Navy kept such industry away and Portland lost a fair bit of its identity because of it.

"Now we are witnessing the redevelopment of the air station and I am truly delighted with the plans I've seen. All we need now is the Brown Route."

She added: "What I would like to be assured about is whether we will retain the coastguard helicopter station here on Portland because I think that is vital, especially now there is so much activity in the water."

Captain Mike Roughton, chief pilot with Bristows which operates the Portland Coastguard search and rescue helicopter, did not want to comment on claims that the Maritime and Coastguard Agency could be withdrawing the service.

But he said: "We know how important the service is in Dorset and we are hoping it will be here in the future.

"We've already had 60 call-outs this year and are looking at reaching about 250 by the end of the year."

He added: "It's great to see the ground works starting on the site - finally Osprey Quay is beginning to take shape."

The business community is enthusiastic about the opportunities that Osprey Quay will bring. Its prime waterside position together with an existing slipway and sailing academy are already attracting marine-related businesses from the UK and further afield. Chief executive of Weymouth and Portland Chamber of Commerce and Industry Bill White said: "I'm pleased to see this redevelopment project is getting off the ground at last or should I say going into the ground.

"There were, quite understandably, fears about jobs and the economy when the MOD left Portland but the regeneration which is taking place now is quite remarkable.

"No-one realised just what a success story Osprey Quay would be."

He added: "The area is attracting a lot of interest and investment. Now we hope that the road infrastructure, namely the Brown Route, will be put into place soon to support this redevelopment."

Luhrs Marine and the Weymouth and Portland Sailing Academy are evidence of the success already being achieved at Osprey Quay.

Luhrs, the European arm of American boat-building giant Hunter, moved on site in September 2000.

Nearly 100 local people are employed at the 16-acre site but the company's vision is to eventually produce about 500 boats a year and employ up to 400 people.

Managing director Stephen Cutsforth said the company realised the potential of the waterside location but initially didn't appreciate the high standard of the adaptable local labour force, with the right mix of technical skills and productivity.

Mr Cutsforth added: "It's great to be part of the foundations at Osprey Quay and I am looking forward to seeing it grow as a marine-related centre."

The Weymouth and Portland Sailing Academy has been operating from former military buildings at Osprey Quay but has already brought significant economic benefits to the area, and these will increase with the further development of the site.

The Royal Yachting Association has identified the academy as the highest national priority and the centre for any future Olympic regatta if the UK is successful in bidding for the games.

The site is also part of the English Institute of Sport, a nationwide network of world-class training facilities and support services designed to assist elite athletes on the international stage.