Thanet council leader Rick Everitt says a £4million Town Deal allocation which has been turned down by the new owners of Dreamland should now be invested in the Winter Gardens.
The money from the £22.2m Margate Town Deal fund had been earmarked to be used towards the renovation and reopening the Dreamland cinema building which has been empty for more than a decade.
The site was to be turned into an entertainment and conference centre, providing spaces for hospitality and catering and also exhibition and pop up spaces.
The ground floor was also to be used by charity People Dem Collective for a two year period while they worked to secure permanent premises.
In January 2021 Dreamland provided a dedicated space for People Dem Collective on the seafront for them to operate from. It is understood that these premises have been provided during the last three years free of charge.
But the park’s new owner LN-Gaiety – a subsidiary of concert and festival giant Live Nation – has decided not to go forward with the project with Dreamland CEO Eddie Kemsley (pictured) saying: “We will develop a plan for the cinema building that is both financially viable and in keeping with Dreamland’s history of entertainment.
“With that in mind we have taken the decision not to accept the £4 million from the Margate Town Deal fund. We hope this money can be redistributed to other projects to benefit the regeneration of Margate and its legacy of leisure and entertainment.”
Council officers are now engaging with the team at People Dem Collective to understand their position and any work they have been doing to identify a more permanent position for the charity.
Thanet council now needs to reallocate the £4 million to other Town Deal projects.
At a council meeting last night (February 22) Cllr Everitt said: “I will be quite candid that I believe this money should now be spent on the Winter Gardens. It is not sufficient to carry out all the required work but it is potentially a huge step forward in our determination to restore and reopen this cherished and iconic local facility.
“First however we do need to understand from the government how it interprets the flexibility it has given us in the Simplification project but we are already seeking its view.”
The Simplification scheme allows Thanet council to manage funding for the Margate Town Deal, Levelling Up projects and the Future High Street Fund as one £51m pot and means funding can be moved between the different projects.
Thanet Conservative group leader Reece Pugh said although Dreamland’s decision to back out of the project was “disappointing” he backed the view that the money should now be reinvested in the Winter Gardens.
Margate Winter Gardens currently has a £300,000 allocation for appraisal of the venue and to market the building.
The original bid for the Winter Gardens had been for £4 million but government requested a long term plan and at that time the council did not have a proposal with a potential operator/partner and so the bid was changed to £300,000 for the structural surveys and related reports.
The council has so far spent or committed £162,03 of the £300,000 on surveys and reports and appointing specialist marketing agents, leaving £137,997 for further legal costs and any other requirements.
A two stage marketing campaign was launched last December with agent Colliers and open days have been held for potential interested organisations.
Previously a report to councillors said 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.
However, the costs are now likely to be much higher due to inflationary pressures.
The Winter Gardens hosted its last performance on August 7 2022 during the Margate Soul Festival before the lease was returned to Thanet council by Your Leisure and the doors were shut in readiness for the appraisal report on the venue and its future uses.
An update on projects that were allocated funding as part of the Margate Town Deal are due to be discussed by Thanet council Cabinet members on February 29.
