DELAYS caused by renegotiating the Pavilion redevelopment project could have a cost of £1 million.

Bournemouth cabinet members will today be warned they need to make a final decision on the Pavilion by Christmas and then let the scheme progress.

Otherwise, the risk is that Trevor Osborne could pull out of the £59 million deal and leave the council to fund the refurbishment of the Pavilion themselves.

Since the contract with Trevor Osborne was signed on election day, the project has fallen four months behind schedule.

This is largely due to the new Conservative administration's desire to try to renegotiate parts of the scheme but also because of a delay in reaching a land swap agreement with the Meyrick Estate.

In a report going before cabinet, head of major projects Stephen Godsall warns: "As this project involves an investment in excess of £59m, any delay in delivery will have substantial inflation costs.

"The scheme is currently running approximately four months behind the project plan.

"This alone could have a cost over £1m.

"Market conditions have also worsened considerably since August, which could affect the funding of the new scheme."

Mr Godsall says that most of the risks will be borne by Trevor Osborne but will also affect the value the council will get from the scheme.

"Ultimately if the scheme viability is eroded too much, it will not be deliverable and Trevor Osborne Property Group may withdraw from the contract," the report says.

Cabinet members will also today decide whether the council or Trevor Osborne should have the responsibility of running the refurbished Pavilion.

Should they want it to remain in-house, the council will have to pay £250,000 a year to the Lower Gardens Trust and will run the risk of losing money if the Pavilion does not attract sufficient visitors.

But if they hand the operation over to Trevor Osborne, there is the risk it will compete with the BIC and the council will have less control over quality.