THE decision to buy back the Waterfront Imax site and evict its tenants was not unlawful, the District Auditor has found.

Former deputy council leader Adrian Fudge had complained about the authority’s decision to spend public money buying back the lease and ousting the businesses still trading.

The eviction of the tenants, which included the Harbour Lights pub and Wacky Warehouse and a KFC, cost the council £360,000 a year in lost revenue.

But District Auditor Simon Garlick said: “I do not accept that the loss of rental income on the Waterfront complex was unlawful. The council considered fully the consequences of removing the tenants and the potential for lost rental income.

“Whilst subsequent delays in progressing the development have increased these losses, I am of the view that this does not render the council’s actions unreasonable or otherwise unlawful.”