Purpose

Authority was sought from
Cabinet for a) the reallocation of funding within the Thanet
Regeneration Programme fund, b) approval to procure the capital
works main contract and c) secure an operator to run the Margate
Theatre Royal and 19 Hawley Square under a lease
agreement.

Decision

Cabinet agreed the following,
to:
 
1. 
Approve the reallocation of the Active Movement and
Connections Margate project funds of £1,000,000 to the
Theatre Royal project;
 
2.  Approve the procurement of contractor(s) for
capital works to the Theatre Royal;
 
3.  Delegate to the Head of Property in
consultation with the Cabinet Member for Regeneration and Property,
to enter into legal arrangements with an operator, to run and
manage the Theatre Royal and 19 Hawley Square.

Reasons for the decision

Following previous approvals
£1m from the Active Movement and Connections intervention was
held in contingency for the Theatre with approval required to
reallocate the funding to the project. The approval brings the
total project budget, including revenue, to £6m.
 
Cabinet approval was required
for the main contractor procurement, as it exceeds the key decision
threshold. This contract is the main capital element and will
advance the Theatre Royal project delivery, with the procurement
strategy recommended by the professional team and approved by the
council's procurement team.
 
Due to financial and
operational constraints, the council cannot run the Theatre Royal
Margate and must secure an independent operator. Previous plans for
the council to lead the operating trust are unviable following
unsuccessful fundraising. A viable alternative exists with interest
from third-party operators, and legal advice suggests a lease
agreement.

Alternative options considered

Due to the significant time and
financial constraints, in addition to the extensive fundraising
efforts and alternative options reviewed within previous Cabinet
reports, no other viable options remain. Therefore, the only
remaining courses of action are to either abandon the project (not
recommended) or adopt the recommendations presented in this report.
Adopting these recommendations is essential to utilise the Margate
Town Deal funding and safeguard the future of the much loved
heritage asset - the Theatre Royal.
 
Do nothing to the Theatre Royal
and 19 Hawley Square - reallocate the funding to another project in
the programme or hand it back to central government. This option
puts a Grade 2 II* Listed building at further risk, and does
nothing to remove the Theatre Royal from the Theatres at Risk, risk
register. This option was not recommended.
 
Approve the
Recommendations.