A specialist marketing agency is likely to be appointed to find a buyer/operator for the Margate Winter Gardens.
On Thursday (March 16) Thanet council Cabinet members will discuss the proposal for making the appointment and launching a marketing campaign to attract investment proposals from organisations with relevant experience and expertise,
But a report to council members says the search for a buyer and/or operator “does face some particular risks” with the likely repair, refurbishment and improvement costs for the site estimated at more than £6m.
The report says an immediate cost of £2.5m is needed for structural , building and mechanical and electrical works with a further £3.5m estimated over the next 10 years and total costs estimated at £6.25m.
The Grade II listed building hosted its last performance on August 7 last year during the Margate Soul Festival before the lease was returned to Thanet council and the doors were shut in readiness for an appraisal report on the venue and its future uses.
Some £300,000 has been allocated from the £22.2million Margate Town Deal fund for the appraisal work. However, a previous report to Cabinet members revealed that the original Town Deal bid included a £4million allocation for works to the historic venue but this fell down when the government Department for Levelling Up – which issued the funding – asked for more detail on long-term plans which could not be supplied.
Currently, the site is ‘boarded up’ with security measures including screening and fencing in place on and around the building.
The measures have meant additional costs to the council of £56,270, excluding callout costs and Facility Management Officer time as keyholders. The council also expects to pay £26,000 in utility costs that were previously paid by previous tenant Your Leisure and statutory compliance and mechanical and electrical servicing costs of £108,000.
Security measures include twice daily patrols and full external patrols plus weekly void property inspections to check for damage or theft, squatters, or evidence of illegal entrance.
The detailed marketing pack will be aimed at securing an organisation to refurbish, improve, maintain and operate the venue.
The report to Cabinet members says: “The Winter Gardens is a significant heritage asset that has the potential to make a contribution to the economic growth and to the cultural, leisure and tourism offer available in the district.”
It adds: “Selling/leasing a listed building with such high socio-economical implications for the town can be a complex and challenging process. Therefore, it is recommended that a specialist agent be appointed to support the marketing.
“Agents who specialise in this field will have the necessary expertise and knowledge to navigate potential issues and ensure a smooth transaction. Appointment of a marketing agency will be subject to a procurement exercise. This approach is considered to offer the best prospect of attracting the quality of organisation and submission to successfully renovate and manage the Winter Gardens in a sustainable way.
“It is recommended that Cabinet retain an open approach to inviting proposals to come forward for a range of potential uses for the building, which could include concert hall, theatre, event spaces or leisure and tourism uses.
“Retaining a wide range of potential options at this stage is considered to offer the greatest potential for a viable submission to come forward that both enhances the heritage and cultural importance of the building and contributes to the economic regeneration of Margate and the cultural, leisure, event space and/or tourism offer available in the district.”
The council has also commissioned an evening and night time review of Margate and Thanet by a specialist team from Counterculture to help inform decisions about the future role of The Winter Gardens. It is anticipated that this work will be completed in March 2023.
The council has so far spent or committed £97,635 of the £300,000 funding, completing survey work and estimates that a further £90,000 will be required for marketing activity, leaving £112,000 for further legal costs and any other requirements
Surveys commissioned to date include an unexploded ordnance risk assessment; asbestos air sampling survey; a laser survey for measured drawings and topographical survey.
Further surveys will include a flood risk assessment and heritage report.
An invite for the public to put forward their views on the Your Voice online platform resulted in around 200 questions. These will be included in an updated FAQ’s on the council website.
Following completion of the surveys, searches and studies and the completion of a marketing campaign a further report will be considered by Cabinet members setting out detailed proposals for the lease or sale of the Winter Gardens.
The meeting takes place from 7pm and will be live streamed.
Estimated timeline
March 2023
Finalise the Evening and Night Time Economy Strategy
Engage the marketing agency – draft and approve marketing materials
Update Cabinet on the marketing materials and the Evening and Night Time Economy and Strategy
Launch marketing activity to identify a commercial partner/operator
April 2023
Host open days in the Winter Gardens for prospective commercial partners and/or operators
Finalise prospective commercial partners and/or operators questions and the due diligence process
May 2023
Review proposals for the Winter Gardens, complete due diligence processes
June 2023
Provide recommendations to Cabinet
