Purpose

The property forming the freehold of Alpamare Waterpark, Burniston Road, Scarborough YO12 6PH and contiguous land to the east together with a 99-year peppercorn lease of 20 car parking spaces in the adjoining Burniston Road pay and display car park (‘the Property’) has been openly marketed for sale with 2 rounds of bidding and, a preferred bidder has been identified.

A decision is sought to proceed with a sale of the waterpark and adjacent land coupled with a 99-year lease of the 20 car spaces to the preferred bidder.

Decision

To dispose of the freehold interest in Alpamare waterpark along with development and amenity land to the east of the property and, along with the grant of a 99-year peppercorn lease of 20 car parking spaces in the adjoining Burniston Road car park on the terms set out in the confidential annex.

Reasons for the decision

Alpamare waterpark came into Council ownership in 2023 following the developer (Benchmark) going into administration. The Council was owed approximately £7.9m by Benchmark at this time and that loan balance was extinguished on reversion of the asset to the council.

The property has been leased to Flamingo Land Ltd since July 2024 with the current lease expiring by effluxion of time on 31 October 2026. Under the terms of the Flamingo Land leases whilst rent was to be paid as a percentage of EBITDA, to date no rents have been paid and, the Council agreed to pay a winter subsidy to ensure the waterpark remained open between November 2025 – March 2026.

Following a marketing exercise interest in the purchase from the private sector was evident which, if realised would enable the Council to exit our ongoing liabilities and cost exposures whilst ensuring private sector investment into the ongoing operation of the waterpark for the benefit of the community.

Alternative options considered

Retention to be managed in-house was rejected as the Council do not have the internal resources or expertise to manage.

Retention to be leased out / managed under a management agreement was rejected as experience has demonstrated that net income is and will remain marginal without material investments into decarbonisation initiatives coupled with a need to undertake significant refreshment and upgrade of the existing plant and building infrastructure.