Decision details

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.

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.

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.

The report considered two alternative options, which are:

1. 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.

2. 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.