Former Scarborough North Bay developer demands action from Council
Benchmark Leisure issued a formal letter to the authority last week
Last updated 16th May 2022
The former developer of Scarborough's North Bay is demanding action from the Borough Council.
Benchmark Leisure was involved from 2002 to 2021, but the authority's cabinet decided not to renew its contract with the firm last year, as it wanted to 'start again' with a new vision for the town's North Bay.
Scarborough Borough Council had intended to let its agreement with Benchmark expire on December 31st 2021, before the company made an eleventh-hour offer to repay an outstanding £8.5m loan to the authority.
Benchmark had previously been responsible for the £14 million Alpamare water park built in North Bay, made possible by a £9 million loan from the council, and had also overseen the building of a pub and Premier Inn hotel on the same site.
However, the plan for a cinema, restaurants and flats where the former Atlantis water park once stood has repeatedly stalled since 2017.
In a statement, Benchmark Leisure said: "Benchmark Leisure Limited, the developer of Scarborough’s North Bay Site from 2002 to 2021, last week issued via their lawyers a formal letter before action to Scarborough Borough Council.
"The issues raised relate to a Development Agreement entered into originally in 2002 and subsequently varied on a number of occasions with regard to the North Bay at Scarborough. Over a number of years Benchmark successfully concluded the redevelopment of many of the sites, including the luxury Sands apartments and retail, the beach chalets, the Valley and Open Air Theatre, the Marston’s Tunny Catch Pub, the Premier Inn and the Alpamare Water Park.
"Benchmark say that after a political change at the Council in 2019, their attempts to complete further developments, including the Multiscreen Cinema, were deliberately thwarted and frustrated, and that Scarborough Borough Council refused to allow the Development Agreement to continue to allow Benchmark to complete all of the development sites as agreed.
"Benchmark contend that the Council have acted in bad faith and are insisting that the Council reinstate Benchmark as the developer of the remaining sites, rather than spending time and public money in appointing a new developer, and to act in good faith with Benchmark to agree a new Master Plan for the remainder of the land. Benchmark’s lawyers have lodged notices with the Land Registry to protect Benchmark’s rights and interests under the Development Agreement with regard to undeveloped sites."
In response, Scarborough Borough Council said: “As part of our ambitious masterplan for Scarborough, North Bay presents us with the single largest leisure development opportunity in the borough, which we need to move forward with.
“It’s a chance to capitalise on the area’s natural assets and place greater emphasis on year round family-friendly activities.
“We acted legally in allowing the development agreement with Benchmark to terminate in March 2021. We refute the allegations now being made by the company, more than a year later.
“We will take legal advice about the correspondence we’ve received from Benchmark’s lawyers and respond to them accordingly.”