BOURNEMOUTH council bosses have responded to claims that the proposed BIC hotel development is “risky” and based on incorrect figures.

However the borough has declined to answer several questions posed by the Daily Echo, including those it was forwarded which we had originally asked of consultancy firm Savills – which the council appointed to value the scheme.

Councillor Philip Broadhead, cabinet member for economic growth, said the plan was “founded on a solid business case” subject to due diligence, and had been “validated by leading experts in the commercial property and hotel industry”. “This hotel development is attracting some of the world’s most prestigious global names in the hotel industry,” he said.

“A development of this kind will further position the town as a lead player in the conferencing and events market, and will attract more visitors to Bournemouth.”

Asked whether the council had considered the impact on private hotels, he said industry experts had “confirmed” a shortage of “quality and branded premium economy bed spaces” in Bournemouth.

“This is evidenced by unfulfilled demand from internationally recognised brands, as demonstrated by the recent investment in the Hilton and Hampton, and the announcement that Malmaison will be establishing a new hotel in the town.”

The Echo asked if the value of the scheme to the council was in fact more in the region of £40 million, compared with its predicted cost of £70m.

The borough responded: “These are not figures that we recognise as associated with the scheme, and are not those considered and agreed by council.”

The council confirmed a 10 year rental insurance policy is part of the contract process and “reasonably mitigates against the likelihood of additional, unfunded financial burdens”.

The Echo asked Savills to confirm its initial terms of reference for valuing the scheme, what it valued the council’s interest as, if there is any comeback on them if the project goes wrong, and whether they provided hard figures or simply advice. We asked the council if Savills will be asked to sign off the profit and valuation figures.

None of these questions has been answered.

Bill Cotton, executive director for environment and economy, said the council is now looking to sign contracts “as soon as possible”.

He said an independent review has backed the scheme. “This independent report supports the business case for this investment and will be available in the public domain in due course.”

Mr Cotton said the council would use its “favourable borrowing position” in its investment and select an “experienced operator”, and said “industry-backed projections” forecast the council will collect “more than enough” net income to pay back the loan.

He said the 10 year rental insurance scheme “will guarantee a significant level of income to the council, which will more than cover the cost of borrowing over that period”.

The council did not directly say if it had consulted with its counterparts in Poole or Christchurch. The three authorities are to be merged into a single unitary council next year, but until then, Mr Cotton said, each would be responsible for decisions that “impact” the new council financially.