A long-delayed seaside regeneration project looks set to be redesigned after council bosses admitted current plans are “not financially viable”.
The revamp of the eyesore former Tivoli Amusements in Herne Bay has been slated for several years with the building sitting derelict for even longer.
Canterbury City Council (CCC) purchased the building in 2018 for £1.1 million, and a year later secured planning permission for the transformation.
That scheme included building 33 homes – with hopes for them all to be classed as affordable housing – and 4,000sq ft of commercial space (approximately three shops) on the Tivoli site and the neighbouring Beach Street car parks.
But efforts to overhaul the site have been met with constant delays.
The earmarked date of spring this year to demolish the front of the Tivoli arcade on Central Parade has fallen by the wayside.
Despite looking for potential buyers to take on the area and redevelop it three years ago, CCC says its preferred option is to deliver the scheme itself.
But bosses at the authority have revealed they may be forced to alter the plans as cash flow issues continue to bog down the project.
Describing the regeneration of Herne Bay seafront as “an ongoing priority”, the authority’s cabinet will meet on July 7, when they will discuss three possible options for the site.
Disposing of the land to another developer could be possible, along with potentially continuing with the currently approved plans.
Council papers confirm its preference is leaning towards adjusting the designs, resubmitting them to acquire new planning consent and splitting the project into phases.
“Delivering the existing scheme is not financially viable and is not possible to progress without significant external funding,” council officers said in a report.
“The current scheme is complex and costly to construct, meaning the construction programme will be long, adding to the risk and contractor preliminary costs.
“Option three is to use our in-depth knowledge of the site’s constraints to simplify the design and deliver a quality scheme in phases, prioritising the section of the site that needs it the most, that being the seafront section, where the Tivoli building still stands.”
Phase one would first focus on redeveloping the former amusement arcade and adjoining residential building.
Phase two would then see the remaining homes and shops allocated within the scheme built on the Beach Street car parks.
Though exact details are yet to be confirmed, it is hoped that splitting the job in two would allow builders to be on-site next year to transform the dilapidated building into six flats and a shop.
The authority says its option appraisal demonstrates phase one “generates some of the highest development values due to the attractive proposition of apartments with sea views” and added “with some design changes” it is “financially viable” though the figures “remain marginal”.
Getting phase two off the ground is likely to be a much harder process, with CCC confessing it cannot afford to carry out this half of the scheme as things stand.
While the preferred approach is to deliver it as a 100% affordable housing scheme to increase housing stock, the council could look to put off starting works until the financial bridge is gapped or sell it to generate capital.
The planned demolition has also been indefinitely postponed to allow for the redesign to take place, as the facade may not need to be brought down if it can be incorporated in the new drawings.
“With a new planning permission and a scheme designed to simplify building forms and design out constraints, Phase 2 will be a more attractive proposition to developers,” said the report.
“The council will be able to deliver at least part of this key regeneration site in Herne Bay, bringing with it the many associated social and economic benefits.”
Despite acknowledging the sale of the site would be the quickest route to bring in cash, the council says it is loath to lose Tivoli Arcade as such a move “relinquishes control of a key regeneration site, and therefore any control over the timing of delivery”.
Bosses also called the previous listing of the area “a fishing exercise” and noted selling now would make recovering money put into the project “unlikely”.
The council was given £554,500 through the Brownfield Land Release Funding scheme (BLRF) and used some – but not all – of this cash to start demolishing several dilapidated buildings on the site.
To comply with the funding terms and conditions, the land must be released for housing by March next year, meaning it needs to be sold on an unconditional contract, transferred to a development vehicle owned by CCC or works need to be underway.
The council report added: “It is due to these time constraints that a decision is required on the proposal to progress the scheme in two phases, as any further delays in decision making will create significant challenges in meeting the requirement to begin works on site by the end of March 2026.”
Should CCC cabinet members go with the recommendation, the next steps will be to work up revised designs for two phases, submit new planning applications, find a contractor and establish potential investment opportunities to secure funding for the regeneration.
Cllr Dan Watkins (Con), ward member for Greenhill, admitted delays to the delivery of the project were proving to be a source of frustration for residents.
“It’s hugely disappointing, given the previous Conservative council got government money to develop it, and bring improvements and jobs to the seafront,” he added.
“Even local councillors don’t have clarity over what is happening.”
