Council in bid to buy Blackpool Tower 'for £30 - £40 million'

Published by Jon Land for 24dash.com in Local Government

Blackpool Tower could soon be owned by the taxpayer, officials said today.

The local council is brokering a deal to buy the famous landmark, along with The Winter Gardens, for between £30 and £40 million.

They are both currently run by the firm Leisure Parcs - with Lancashire-based business tycoon Trevor Hemmings the majority shareholder.

The plans are being put forward on the condition the local authority can get cash from the European Regional Development Fund for the purchase.

The council wants to buy them because if they are owned by the public sector, rather than a private owner, they may then get more taxpayers' cash for much-needed investment in the attractions.

The deal also includes the purchase of The Golden Mile Centre and Louis Tussauds.

The struggling Lancashire resort has seen a massive drop in visitor numbers since its heyday in the 40s and 50s.

And its hopes of major regeneration were dashed when it lost out in its bid for the Super Casino - a project subsequently dropped by the government.

A report by Sir Howard Bernstein on how to breath new life into the fading resort looked at ways of attracting new investment money to be spent on the town`s major attractions.

It concluded that finding a private investor to put their own money in would be difficult.

But by bringing the landmarks into the public sector they could benefit from allocations of heritage funding that could not be accessed by private sector owners.

Councillor Peter Callow, Leader of Blackpool Council, said: "For a long time there have been questions asked of us as to what we can do to help the Winter Gardens and Tower and bring them in line with other regeneration activity in the town.

"They are two of Blackpool's best assets and a highly significant part of our history that we must build on to secure our future.

If we can access the extra funding, we can protect the public's interest in them and turn these attractions into something that can last well into the twenty first century.

"This is still at the very early stage of the process and there is a great deal of work that needs to be done to secure the funding but what it does show is the Council's ambition for Blackpool's future."

If the bid is successful the transaction would have to be agreed by the end of the financial year. A decision will be made on the funding in the New Year.

Doug Garrett, Chief Executive of ReBlackpool, said: "The Tower and Winter Gardens have been attracting tourists to Blackpool for more than 100 years.

"By bringing them into public ownership we can ensure they benefit from the additional funding which may be available for their development and making them a platform for the resort to build on and around for the next 100 years."

According to a recent report the property downturn had led to a massive slump in the wealth of assets owned by property magnates such as Trevor Hemmings.

A statement from Leisure Parcs today confirmed an approach on behalf of Blackpool Borough Council had been made.

It said: "The transaction is dependant upon funds being provided by the European Regional Development Fund out of monies allocated for this financial year and includes funds not only for the acquisition but for future capital investment projects principally in the Tower and The Winter Gardens.

"At this early stage, Leisure Parcs confirms that it is considering the approach in a favourable manner.

"If the funds cannot be secured by the end of March 2010 the transaction will not be able to proceed."

The Winter Gardens is hosting the Royal Variety Performance with the Queen in attendance, on Monday.