The first of its kind outside of London, the corporation will help local leaders to transform the former SSI steelworks site.
Work will start immediately to form the corporation, allowing greater powers to be devolved in areas including regeneration planning and business support.
These powers will be at the new Mayor’s disposal.
Lord Heseltine visited PD Ports today to witness the completion of a multi-million-pound project to upgrade and improve infrastructure at Teesport – located at the centre of the site that will benefit from the new Mayoral Development Corporation (MDC).
Local business leaders say the investment will play a role in the return of economic vibrancy to the area - something the new corporation will look to deliver by securing investment from the UK and overseas to bring in new jobs and businesses.
Communities secretary Greg Clark said: “The closure of the SSI site has been incredibly difficult for Redcar and the wider Tees Valley and we’re determined to continue our support for the local community.
“Already, up to £80 million government funding is in place to ensure former SSI workers and local affected businesses get the support they need.
“This new Mayoral Development Corporation is the next step, putting local people who know the area best at the heart of driving regeneration and delivering new businesses and jobs for the community.
Former deputy Prime Minister Lord Heseltine said: “Key to the economic future of the Tees Valley will be the regeneration of sites and securing strong business investment to create jobs for the skilled workforce affected by SSI’s closure.
“Under dynamic leadership the new Mayoral Development Corporation will provide the strategic vision to make that happen and give investors from the UK and abroad the confidence to put down roots in the Tees Valley for years to come.”
Councillor Sue Jeffrey, chair of the Tees Valley Shadow Combined Authority said: “I welcome this agreement and confirmation that government is to take responsibility for the SSI site and establish an intermediate body to ensure safety and security in the short-term. But it is the long-term regeneration of the area that is my main focus.
“This announcement includes proposals to fast-track the Mayoral Development Corporation agreed in our devolution deal and this is a positive step forward. This can’t be just about new structures and boards – we will work with government to secure the necessary powers and funding to create a viable future for the area as a whole.”