THE Waterfront building – formerly home to Bournemouth’s ill-fated Imax cinema – is in the headlines again as efforts continue to find a future for the site.

Bournemouth council has rejected as unsuitable all the bids from private companies interested in an interim re-development of the site.

It is now looking to provide the building earlier than planned to the Bournemouth Development Company – a public-private partnership between the council and Morgan Sindall Investments.

The council has put out the following answers to some of the key questions over the issue.

Q. Why is the council now working with MSI and the Bournemouth Development Company?

A. When the council marketed the site earlier this year, the indications were that economic recovery was underway.

We now know that changing market conditions in the global economy make it unlikely that a private sector investor will come forward in the short term with a proposal that provides the right balance between public amenity, leisure and commercial uses.

This is where a public/private partnership such as the Bournemouth Development Company can deliver schemes that would not be fundable by either the public or private sector acting alone.

Cabinet on November 17 2010 agreed that the Waterfront site would be developed via the Bournemouth Development Company in the long term, so this recent approach from Morgan Sindall Investments, on behalf of the Bournemouth Development Company, looks at bringing this forward at an earlier stage in the development programme.

Q. What procurement process has been undertaken to establish the Bournemouth Development Company?

A. The Council underwent an 18 month formal procurement process to find an experienced commercial partner of credible standing with whom to form the Bournemouth Development Company.

The culmination of that extensive procurement is Morgan Sindall Investments and Bournemouth Council forming a 50/50 partnership company together, specifically to take a long-term approach to the development of key sites under the Council’s Town Centre Vision.

Q. Will BDC’s proposals be restricted to just this site or incorporate any of the surrounding area, such as Bath Road South Car Park?

A. We will need to wait to see the proposals that BDC comes forward with.

Q. Are you looking for an interim or permanent development?

A. We will need to wait to see the proposals that BDC comes forward with.

Q. Does the previous Planning Brief still apply?

A. Yes. Future development of the site will be guided by the Planning Brief and the Area Action Plan for the town centre.

Q. How long will it take for BDC to respond?

A. The economic feasibility of any scheme will have to be investigated before a clearer idea of the timetable can be considered.

Q. What happens to the building in the meantime?

A. We have called a halt to the planned alterations for now, and we will review this decision once the proposals from BDC have been received and considered.

The building will remain closed for what is left of the 2011 summer season. Once we have seen what the Bournemouth Development Company is proposing, we will be in a position to consider our options for the 2012 season.

We have no plans to seek short-term tenants for a variety of reasons. In 2010 we looked at short term lettings on the former Red Panda and Exchange Bar & Grill units. Unfortunately, the offers received were not sufficient to cover the service charge and generate a rent for these units, and as such would have needed a public subsidy.

Q. Was it right to buy the Waterfront when you did?

A. It was a good time to buy the Waterfront building when we did.

The council explored the option to purchase in 2007/8, when the cost of acquiring the Waterfront and the various sub-leases was estimated at around £15 million – more than twice the costs we have incurred.

If we had taken no action, then the extremely unsatisfactory position that had prevailed for many years could have continued indefinitely.

The council has brought this mater to a head and the council is now in control. Because of this, we can be sure that in the foreseeable future, we will have improved views and a better, more popular development.

Q. How much has been spent so far by the Council?

A. A total of £6.5million has been spent from capital funds allocated of £8.5million.

This is broken down as follows: head lease acquisition £4.8m; acquisition of sub-leases £1.5m; legal fees £24,000; planning brief £23,000; site marketing £15,000; interim scheme planning consents, construction drawings and specifications £217,000.

Q. Wasn’t this £217,000 wasted?

A. The council progressed with an interim scheme in all good faith, with a view to reducing the height of the building as soon as possible.

In preparing these documents the council’s consultants now have an in-depth knowledge of the structural construction of the building, which will be invaluable in considering the alternative option. This will lead to economies further down the line, even if a different scheme is pursued.

Revenue Costs

A. In 2010 the cost of running the building for the Council was £225,000. The Council has allocated a budget of £63,000 for the the financial year 2011/12. We have been able to significantly reduce the on-going running costs to around £45,000. Running costs can be broken down as follows: Building management £24,530; insurance £6,340; security £2,400; utilities £11,200; rates (taken out of rating list pending redevelopment) 0. Total £44,470; total per month £3,705.

Q Why don’t the council let out units on a short term basis to get some rent?

A. The council has only been able reduce the running costs by managing the property as vacant premises which reduces the rate liability, utilities costs, maintenance and security costs. We would not be able to achieve enough rental income and recover service charges from tenants to make it viable in the short term.

Q. Do the results of the public consultation still stand?

A. Yes, this is embodied in both the Planning Brief and the Area Action Plan.

Q. How will the trade be involved?

A. We know that the trade have expertise and views that will be valuable to determining the future of the site, and await BDC’s thoughts on how to engage further with them.

Q. How will councillors be involved?

A. The council is a 50 per cent partner in the BDC, so will remain very much involved in the development of proposals. Additionally, a Task & Finish Group of councillors already established to steer the future development of the site has so far proved to be extremely worthwhile, and we plan to involve this group in the future going forward.