A £30 million cash boost towards the Nottingham Skills Hub has been heralded as a "vital investment" in the city's future.
The hub will see Central College and New College Nottingham work together to create a "state of the art" facility on Canal Street.
The aim is to create a college that will ensure youngsters are ready for the world of work and industry – and teach them skills such as lace manufacturing, design and event management.
Peter Richardson, chairman of D2N2 Local Enterprise Partnership, said the new hub could be "transformational" for the city.
He added: "It's a massive, vital investment in the future prosperity of the city and in the future of the children who live here.
"This, with the developments around the Broadmarsh, will change the area for the better.
"It's amazing news."
Mr Richardson, along with chief executive of the LEP David Ralph visited Ilkeston-based precision laser cutting company FC Laser yesterday, who have benefited from Government money in the past.
The company applied for a grant of £66,000 from D2N2's Unlocking Investment for Growth programme which is supported by the Government's Regional Growth Fund.
And business development manager Darren Johnson said projects like the Skills Hub were important.
He said: "In businesses like ours, we need people that are ready for work.
"We do a lot of training here to get people up to standard, but we want the foundations there.
"We have had apprentices come in the past and it's been great to see them develop their work."
The new development will create around 450 jobs and has been given the money from the Local Growth Fund which was announced yesterday.
Other proposals that got money were new relief roads for Newark and Hucknall, as well as an expansion to BioCity.
The Skills Hub won the biggest amount of funding in the area from the Government.
The £60 million project will see a 25,000 sq m college built on derelict land near the Broadmarsh with documents saying it will "respond directly to the needs of local employers" and "supply the skills required for Nottingham's key employment and growth sectors."
Malcolm Cowgill, principal of Central College said the hub "allows us to radically change" the landscape of education in the city.
He said: "It responds directly to the needs of Nottingham's employers and will provide the skills required to drive the City's Growth Plan forward.
"It is an exciting and innovative collaboration between our two colleges, both of which are committed to improving Nottingham's Education and Skills infrastructure.
"It brings a much needed focus that will mean that employers and individuals know exactly where to go to get the skills they need."
And Dawn Whitemore, principal of New College Nottingham, said: "The Skills Hub is one of two new builds in progress along with New College Nottingham's Basford Hall.
"This level of interest in Nottingham is welcomed and the two colleges will be working together to make sure students and employers benefit from the best possible learning experience."
