The Council has decided to proceed with the redevelopment of the former Tivoli arcade in Herne Bay, focusing on improving the seafront area and potentially delivering council housing in Phase 2.

URL: https://democracy.canterbury.gov.uk/ieDecisionDetails.aspx?ID=1625

Decision Maker: Council

Outcome:

Is Key Decision?: Yes

Is Callable In?: No

Purpose:

Content: Councillors Castle and Chris Cornell introduced the report that outlined the options for the potential redevelopment of the former Tivoli arcade (73-74 Central Parade) and land to the rear on Beach Street in Herne Bay.    There were three options in the report for Cabinet to consider:  Option 1 - Dispose of the development site for a capital receipt  Option 2: Construct the existing scheme as per the existing planning consent  Option 3: Redesign the scheme and develop in phases    The Cabinet discussed the report, and the following points were made:  Support was given for option 3 as the most sensible and practical approach, enabling improvement of the seafront area and potentially delivering housing in phase 2.  Officers outlined the history of the scheme, explaining that the Tivoli site had been acquired in 2018 after sitting empty in the private sector for many years. The original commercial scheme obtained planning consent in 2019 but was delayed by COVID, with subsequent cost inflation and falling values making it unviable.  The shift in corporate priorities towards delivering council housing stock rather than purely commercial schemes had influenced the new phased approach.  Phase 1 would focus on the key Central Parade frontage regeneration, with Phase 2 potentially delivering council housing if viable, or disposal for capital receipt if not.  Cabinet members praised the work done to bring forward a deliverable scheme, noting that Phase 1 was important for Herne Bay's civic pride and that the new government's housing announcements might provide opportunities for Phase 2.    It was proposed, seconded and when put to a recorded vote    RECOMMENDED TO FULL COUNCIL:   1) That delegated authority be granted to the Head of Property and Regeneration, in consultation with the portfolio holders for finance and property, to decide on the most appropriate delivery model to achieve the council’s regeneration aspirations for Beach Street.   This would mean either:     a) to implement the necessary steps to deliver the regeneration scheme in Phases 1 and 2, as outlined in Option 3 of this report. This includes, but is not limited to, applying for new planning permissions, procuring a main contractor and professional team, and any other related tasks required to advance the development on the Beach Street regeneration site.   b) If Phase 2 cannot be delivered or if, for any reason, the approach does not deliver the council’s regeneration aspirations, to dispose of the site designated for Phase 2 to generate a capital receipt.    2) That delegated authority be granted to the Head of Legal to enter into any legal documentation required to enable the above.      3) That delegated authority be granted to the Director of Finance (s151 officer) to decide the most financially advantageous route for funding any potential scheme delivery.    4) That a budget of £350,000 be allocated from existing capital budgets to allow the progression of the scheme on the basis of the recommended Option 3.    Record of the voting:  For (7): Councillors Baldock, Castle, Dawkins, Charlotte Cornell, Hazelton, Ricketts and Sole.  Against: None  Abstained: None    Reason for the decision:  The council will be able to deliver at least part of this key regeneration site in Herne Bay, bringing with it the many associated social and economic benefits. Phase 1 will deliver the council’s long-held ambition to improve the streetscape of Herne Bay’s seafront, replacing the current eyesore buildings with a new attractive development. This approach delivers the council’s objective to “Be A Better District” set out in the Corporate Plan 2024-2028, through delivering on the council’s ambition to increase council house acquisition.   

Date of Decision: July 7, 2025