A Southport hotel going into administration has had a “chilling effect” on ambitious seafront plans, according to a senior local councillor.
Leader of Sefton Lib Dems, cllr John Pugh made the remarks after Bliss Hotels filed for administration with Companies House.
Cllr Pugh said: “Many of us are genuinely surprised at this turn of events” adding that “it feels like a chill wind in the current very uncertain economic circumstances.”
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The hotel’s director had been part of Southport’s Town Deal Board, which had successfully bid for £37m from the government to support the town’s transformation – with £33m of that earmarked for the town’s marine lake events and conference centre.
Cllr Pugh said: “No-one should panic but with the new conference development having less than half its anticipated costs covered by the government grant when the public finances themselves are in turmoil, we need to be very cautious .
“This means more transparency and within sensible commercial limits less secrecy.”
Referring to problems with other operators in the town, i ncluding Genting Casino, Cllr Pugh added: “Southport does not need any more unpleasant surprises.”
He said in the light of the current economic climate there is concern over the “need to nail down” the costs of the project, which is already set at over £70m, before pressing ahead with the demolition of the existing Floral Hall.
Cllr Pugh said; “No-one though wants another Sibec (Winter Gardens)- a great scheme in principle half-built and killed in the early 90s by economic forces beyond our control.”
He added,”You can’t eliminate risk altogether but the public need to be have the assurance that the Council is properly mindful of them. We are entering a crucial phase where on November 15th we will learn which contractors want to complete the project and under what conditions.”
Sefton Council’s cabinet member for regeneration and skills Cllr Marion Atkinson said she was saddened to hear of the company’s difficulties adding “our first thoughts are with those staff and other businesses who are directly affected by this news.”
However, she hit back at claims of “chill winds” for the council’s planned flagship £73m marine lake events and conference centre instead accusing Lib Dem leader Cllr Pugh or giving the “cold shoulder” to the town’s regeneration plans.
Cllr Atkinson said: “We have consistently made clear from the outset, the Marine Lake Events Centre and accompanying Water & Lights Show is a hugely expansive scheme.
“This type of project requires countless hours of pre-planning, budgeting, consultation, engagement, procurement and detailed scrutiny – all of which I am delighted to reaffirm to Cllr Pugh has so far been successful at every stage. He would know this if he read his Council papers.
“In addition to the ‘nailed down’ £2.3 million of pre-development work and Sefton Council’s commitments of a further £19.7 million, Liverpool City Region Combined Authority has r ecently agreed a £17.7 million for the Marine Lake Events Centre.
“We have also appointed the world’s leading event management firm ASM Global as the venue’s operating partner, who are fully invested in helping us to attract millions of new visitors to Southport year on year and generating an annual £18 million for the local economy.”
Cllr Atkinson said the centre was one of the “key projects” in the Southport Town Deal Programme, adding it was “a programme which is specifically designed to help the local economy grow in the long term and has the support of countless business leaders, the Liverpool City Region and our fantastic communities.”
She added: “It really is ironic Cllr Pugh mentions ‘chill winds.’ This is his attempt to further undermine the area he represents by consistently giving the cold shoulder to the towns much needed regeneration just like he did with Southport Market”
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