Plans to transform Scarborough’s former Brunswick Centre into a major leisure and entertainment destination could receive up to £18.5 million in public sector support.
North Yorkshire Council could approve in principle a funding package comprising an £8 million council loan alongside £10.5 million in grant funding from the York and North Yorkshire Combined Authority and the Pride in Place programme.
The funding would support proposals by Scarborough Group International (SGI) to redevelop the long-vacant town centre site into a leisure-led destination featuring a six-screen cinema, family entertainment facilities, restaurants, cafes and new retail units.
Council bosses will consider the proposals at a meeting of the executive committee on Tuesday, October 27.
If approved, an initial £3 million package would be made available for pre-development work, including detailed design, structural investigations, internal demolition works and preparation of a planning application.
According to council papers, the wider redevelopment is expected to create more than 400 direct jobs and a further 160 supply-chain jobs, while generating up to £45m a year in spending and attracting an estimated 850,000 visits annually.
The Brunswick Centre closed in September last year and has remained vacant while options for the site’s future have been explored.
North Yorkshire Council deputy leader Cllr Mark Crane said the site had a key role to play in the regeneration of the town centre.
He said: “The site of the former Brunswick Centre is in the heart of Scarborough and would be an important element for our plans for regeneration across the town and the wider coastal area.
“These proposals have the potential to transform a large vacant site into a vibrant destination that will attract both residents and visitors throughout the year.”
The proposed development would include a six-screen multiplex cinema with capacity for around 600 people, a family-focused indoor leisure attraction, up to three food and drink units and two retail units.
Council-commissioned studies concluded there was a strong strategic case for public investment, with the scheme expected to increase footfall, support existing businesses and strengthen the town’s leisure offer.
However, the council said the project faces a funding gap of £10.5m and requires the proposed £8m public sector loan to help attract private investment.
The council’s contribution would only be released if funding from the combined authority and the Scarborough Neighbourhood Board is also secured and a series of due diligence checks and funding conditions are met.
If councillors approve the proposals, the next phase of work is expected to take around 12 months before a final decision is made on whether the redevelopment proceeds.
Official figures show that Scarborough sees a total of 3.9 million visits each year and the town’s tourism sector is worth £579.5 million to the local economy.