HUNDREDS of thousands of pounds could be borrowed to fund an “ambitious” rebuild of a café on Mudeford sandbank which was gutted by fire more than a year ago.

Beach House had to be demolished following the November 2018 blaze and BCP Council has a legal obligation to replace it within two years.

On Wednesday (January 15), members of its cabinet will be asked to give its backing to proposals for a “more up-to-date” replacement at a cost of just over £1 million.

It received £350,000 from its insurers following the incident.

“By mutual consent with the tenant [Macemade], the council has pursued the current development programme to design a new building,” a report published ahead of next week's meeting says.

“This will deliver improved visitor experience to Mudeford sandbank, allowing the tenant to expand their current food offer and deliver an increase in revenue for the council.”

Rental rates charged by the council are below the average for other similar seafront premises it owns.

Although Macemade was responsible for any maintenance costs as part of its tenancy agreement, the building was insured by Christchurch council with the agreement transferred to BCP Council following its formation.

Last summer the business was run from three converted shipping containers and a fish and chip van alongside the remnants of the old building.

But the report says this is not a long-term solution because exposure to coastal weather conditions will have a detrimental effect on the temporary structures.

The council has received a £350,000 insurance pay-out following the fire but the proposed new “ambitious” replacement building is expected to cost just over £1 million.

The report outlines plans to meet the gap by borrowing more than £800,000.

Planning permission is forecast to be given later this year before work starts at the end of the summer.

The new building could then be ready to hand back to Macemade in May 2021.

At its meeting on Wednesday, the cabinet will be asked to give its backing to the proposals for the rebuild and to give the go-ahead for the remaining funds required to be borrowed.