Purpose

Cabinet considered a report
which provided an update on the progress made by the Council in
marketing the Winter Gardens in Margate. The report recommended a
preferred commercial partner to lease, refurbish and reopen the
venue.
 
The proposals set out in the
report aimed to secure the long-term future of the Winter Gardens
as a multi-use leisure and entertainment venue.
 
The report recommended that the
Council commit to the project to refurbish and reopen the Winter
Gardens, in partnership with Westwood One Theatre, and support the
work to complete the necessary next steps.

Decision

Cabinet agreed the following:
 
1.  
That Westwood One Theatre is the preferred partner organisation to
refurbish and reopen the Winter Gardens in Margate;
 
2.  
To note the summary of the independent evaluation set out in
section 4 of the Cabinet report;
 
3.  
To note the mitigation proposed by officers in relation to issues
identified in the independent evaluation;
 
4.  
That officers can commit to working with Westwood One Theatre to
progress the project and complete next steps set out in 4.6 (to the
Cabinet report);
 
5.  
To pay a grant to Westwood One Theatre to support the cost of the
work set out in para 4.6 (to the Cabinet report) up to a maximum of
£80k;
 
6.  
To note that the grant referred to at Recommendation 5 above can be
paid from the existing revenue budget allocated to the Winter
Gardens;
 
7.  
To delegate authority to the Director of Place, in consultation
with the Cabinet Member for Regeneration and Property to enter into
a lease for 999 years with Westwood One for the Winter gardens,
based on the draft Heads of Terms attached at annex 1 and subject
to the conditions set out in 4.8 (to the Cabinet report) being
met;
 
8.  
To delegate authority to the Director of Place, in consultation
with the Cabinet Member for Regeneration and Property to enter into
a grant agreement for £4m to support the cost of the
refurbishment of the Winter Gardens, based on the template
agreement attached at annex 2 and subject to the conditions set out
in para 4.8 (to the Cabinet report) being met.

Reasons for the decision

Following an extensive marketing campaign, the
Council has identified Westwood One Theatre as its proposed
preferred partner to progress the refurbishment and reopening of
the Winter Gardens, Margate.
 
Westwood One Theatre’s proposals align
with the Council’s stated ambitions to reopen the Winter
Gardens, Margate for Entertainment and Leisure uses. Once delivered
the proposals will:
 

Protect the Winter Gardens, a
significant grade II listed heritage asset for the future.
Contribute to the regeneration of
Margate, and
Support a vibrant local leisure and
tourism industry by expanding the leisure and entertainment offer
available in the district.

 
The proposals provide better value for money
for the Council than alternative options for the Winter Gardens and
attract significant private sector match funding.
 
The recommended next steps will provide
greater assurance to both the Council and Westwood One Theatre
about the viability, sustainability and deliverability of the
project and reduce the level of risk for both organisations.

Alternative options considered

The report
considered two alternative options, which are:
 

Do Nothing: this option was
rejected because: 

· 
The Winter Gardens would remain closed.
· 
The opportunity to contribute to the economic growth and
regeneration of Margate and Thanet would be lost.
· 
The Council, as the owner of a grade II listed building would still
be responsible for the on-going maintenance of the building and
have an obligation to protect the listed structure.
· 
Empty buildings present a risk of attracting anti-social behaviour,
vandalism and graffiti.
· 
Empty building holding costs for the Winter Gardens, including
insurance, utilities and security currently total £197k p.a.
There is no on-going budget for this cost.
 

The council complete the
refurbishment itself:

· 
The capital cost to the council would significantly exceed the
£4m allocated to the Winter Gardens as part of the Margate
Town Deal. The additional cost is estimated at this stage to be
between £800k and £5.6m, depending on the scope of
works.
· 
This option would still require the Council to identify a
commercial operator for the main hall.
· 
The time line in respect of the Queen’s Hall would be
extended and uncertain.