Scarborough regeneration plans set for £8m mayoral funding boost
An £8 million mayoral funding package aimed at kickstarting Scarborough’s regeneration is set to be approved next week.
A multimillion-pound project to tackle the “long-standing socio-economic challenges” facing Scarborough and support its significant potential for growth will include the regeneration of the town’s Brunswick Centre.
The York and North Yorkshire Combined Authority is being asked to approve £1 million immediately and ringfence a further £7 million for future phases of regeneration in Scarborough, on top of previous commitments.
The funding forms part of a wider £18.5 million public investment package in the redevelopment of the Brunswick Centre into a multiplex cinema and leisure destination, backed by an £8 million loan from North Yorkshire Council and £3.5 million from the Pride in Place initiative.
David Skaith, Mayor of York and North Yorkshire, said: “High streets and town centres need our backing, not quick fixes. Redeveloping the Brunswick Centre is set to be the catalyst for a wider revival of the town.
“We will take this plan to Cabinet next week as we take the next major step in our ambitious journey for Scarborough with our first Mayoral Development Zone.”
At a meeting this week, bosses at North Yorkshire Council gave the green light to the first £1 million of its contribution to the town centre project while acknowledging the risks if the scheme does not progress.
Once complete, the redevelopment is projected to create more than 400 permanent jobs, alongside 160 jobs during the construction phase. The scheme still requires a new planning application after a previous consent lapsed.
This summer, the Combined Authority’s cabinet approved in principle the designation of Scarborough as a Mayoral Development Zone.
The Mayoral Development Zone provides a mechanism for “strong public leadership, strategic use of land and assets, and effective public-private partnership working to unlock investment, overcome viability constraints and improve outcomes for residents, businesses and visitors”.
The development zone will aim to accelerate investment in tourism infrastructure, hotel and accommodation development, conferencing facilities, town centre improvements and year-round visitor attractions, entertainment and cultural venues.
The Combined Authority considered the option of grant funding the full £7 million for both tranches of the Brunswick redevelopment up front but due to the “level of risks at this stage” and the requirement for detailed due diligence, it opted for a phased approach.
The initial £1 million investment carries financial risk and “may be irrecoverable if the wider redevelopment does not progress”, a report states.
It adds that although the proposed funding agreement will include appropriate conditions, milestones and protections for public funds, the nature of the expenditure means that the Combined Authority may not be able to recover all or part of its contribution if the scheme subsequently proves undeliverable or does not secure approval for later phases.
Scarborough Group International’s proposed development includes a six-screen cinema, family-focused indoor leisure attraction, food-and-drink outlets, and two major retail units.