Southend council could invest £10m in Seaway leisure scheme

A cinema and other leisure buildings are due to be built in Southend

A council is proposing to invest £10m to keep a planned £50m seafront leisure complex on track.

The development of Seaway Car Park in Southend in Essex would include a cinema, restaurants and a new car park.

However, after the developer Turnstone Estates said it was financially unviable to move forward without help, Southend Borough Council stepped in.

If the investment was approved, the council said it would help create a "leisure industry worthy of a city".

The Local Democracy Reporting Service said Turnstone had said it was unable to attract investors in the current market, because if it were to be sold once completed, according to current commercial property prices, the developer would get less than they had put into the scheme.

The council's plan to invest £10m of its capital reserves would see it tied into a 40-year annuity leasing agreement, after which it would have the opportunity to buy the whole development for a nominal £1.

The council would also be able to keep any rents and car parking revenue from the development.

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Ian Gilbert, Labour leader of the council, said: "This proposal demonstrates another bold and confident move by the council in delivering on its promise to support and invest in our economic recovery.

"The Seaway scheme plays a vital role in our regeneration story, and as we move forwards with projects that deliver the new housing we need, it is equally important that we create new jobs and exciting places where people want to visit and spend time and money locally."

The investment proposal is due to be discussed at a Cabinet meeting on Tuesday.