A CONTROVERSIAL £70 million leisure complex on Southend seafront has been put on hold after the current economic turmoil “wreaked havoc” on prospective investors, council bosses have confirmed.
Turnstone Estates, who are behind the Seaway leisure complex with Southend Council, proposed to build an 11-screen Empire Cinema with IMAX, a 20-lane Hollywood Bowl, and a Travelodge hotel on the site of the Lucy Road carpark.
Last year the council backed the scheme with a £10 million investment designed to encourage other investors to get on board - but it emerged a marketing campaign is yet to take place.
At a full council meeting last week, resident Mr Brooks asked if funding had been secured.
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Paul Collins, councillor responsible for asset management and inward investment, said: “The funding market has not yet been approached and therefore funding is not yet secured.”
After the meeting, Mr Collins added: “Our desire to move the Seaways project forward remains strong, but the wider economic circumstances over this recent period, have reaped havoc on the funding markets.
“Therefore, we will be ready to approach funders when the economic conditions are more suitable to do that.”
In June, the Echo revealed costs for the project had leapt from £50 million to £70 million.
The council agreed to put up £10 million from its capital reserves after it became clear it was not financially viable without help.
This would see the council tied into a 40-year annuity leasing agreement, after which it will have the opportunity to buy the whole development for a nominal £1. In return the council would keep any rents and car parking revenue from the development.
However, the money will not be released until Turnstone has tenants for 70 per cent of the units.
The scheme was expected to generate around 500 jobs and contribute £15.1 million of additional expenditure to the town.
Tony Cox, leader of the Conservative group, said: “It was dead in the water when they proposed it. It was never achievable.
“I just wish the administration would cut its losses, stop allocating £10 million of public money towards the scheme that’s never going to see the light of day. It could be used to bring the Kursaal back or for other infrastructure projects.
“The money is still there, still budgeted for, there’s a whole raft of things they can do with it.”
Turnstone Estates was approached for a comment.
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