Decision

1. 
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;
 

2. 
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.

Reasons for the decision

The
decision to proceed with the 999 year
lease and £4m grant agreement with Westwood One Theatre is
made for the following reasons:
· 
The recommendation is in line with the decision
taken by Cabinet about the Winter Gardens at its meeting on 20
March 2025.
· 
The pre-conditions set by Cabinet on 20 March 2025
have now been completed.
· 
The project represents good value for money for the
council in realising its stated aim to return the Winter Gardens to
operational use, and secures approximately £3.9m of private
sector match funding for the project.
· 
The proposed structure of the lease and grant helps
to mitigate the identified risk of the project.
· 
Westwood One Theatre were selected as the
Council’s partner organisation to lease, refurbish and
operate the Winter Gardens following two rounds of opening
marketing and careful scrutiny of their
proposals.

Alternative options considered

Decide not to proceed with the
lease and grant agreement. This option is not recommended. As set
out above, there is limited scope to vary the terms of the lease
and grant agreement, and not proceeding would result in the Winter
Gardens remaining in disrepair and unused for the foreseeable
future.
 
The report considered by
Cabinet on 20 March 2025 also explored the potential for the
council to complete the refurbishment. This option was not
recommended at the time for the following reasons:
· 
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 was estimated 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.
 
However, the report concluded
that if the recommended option was not able to proceed then this
option can be revisited, albeit on the understanding that
additional funding would be required. The council is not able to
provide the additional capital funding required to make this option
viable.
 
The Cabinet also has the option
to do nothing. This option is not recommended as there are a number
of significant consequences:
· 
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.