Southport Theatre & Convention Centre will not open in the short term.
Sefton Council says the huge £550,00 repair and maintenance bill needed to make the building operational again has made the idea a non-starter.
Officers also don’t believe they would be able to find an operator willing to run the facility in the immediate future due to the uncertainty over the Covid pandemic.
Southport Town Deal board has already committed £30million towards creating a new Marine Lake Events Centre, with a further £3.3million for a spectacular light show in the Marine Lake.
The Town Deal board are also hopeful of securing a further £20million from the Liverpool City Region Combined Authority as well as talking to other partners to bring those plans to fruition.
How the new waterside events venue in Southport could look
The decision on whether to open the STCC in the short term will be made by Sefton Council’s Cabinet next week. Work would include: fire alarm renewal; Emergency lighting renewal and extending; General remedial works; Legionella Remedials; Heating, Ventilation, gas safety remedials;
Sefton Council Executive Director Place Stephen Watson in his report to councillors, said: “There are several critical factors that need to be considered with regards to any short-term reopening options: Current condition of the building; Economic impact; Conference market confidence; Potential operators; Town Deal outcome.
“Whilst the STCC has played a major role in Southport’s visitor economy and cultural landscape the facilities are no longer up to modern standards and need significant investment.
“The age and condition of the plant equipment present a major risk of failure without some short-term investment.
“It is becoming harder and harder for the STCC to compete for entertainment events and audiences and business events and delegates. It is particularly important for business events facilities to maintain modern standards and keep up with key competitors that are regularly investing in facility improvements.
“As part of the ATG exit the Council undertook a building condition survey and a plan of essential works was produced. However, since that time further investigations have revealed that most of the Mechanical & Electrical systems throughout the facility are at the end of their life, requiring substantial investment and renewal.
“Site visits and the building condition survey have concluded the asset is in an extremely poor condition, the main areas of concern centre around the Theatre which requires extensive refurbishment to continue to operate.
“This is far in excess of the income it could generate in any short-term period.
“There is also a need to undertake essential repairs to facilities and equipment along with fire protection measures throughout the building.
“The projected capital cost for any short-term reopening of the STCC (excluding the theatre) is approximately £550,000 for essential repairs and upgrading works to make the venue legally compliant.
“Even if these works are carried out there is no guarantee more problems or issues will not arise once the venue is open requiring more capital allocation and resulting in cancellation of conferences and entertainment shows.”
There are also doubts about finding an operator willing to take on the STCC in the short term.
Stephen Watson wrote: “In addition to the poor financial performance, the audiences for entertainment events have fallen significantly since 2012, from 165,500 in 2012 to just over 50,000 in 2019, a reduction of c70%.
“Without a major intervention to modernise / update / replace the facilities it is highly likely that there will be an accelerated decline in the quality and operational performance of the STCC, and a continued reduction in the number of events and attendees which in turn would have a negative economic impact on the town.
“The STCC has been operated on behalf of Sefton Council for over 20 years by several theatre and venue operators through yearly management fee payments, ATG being the long-term operator over that term.
“There are only a small number of venue operators in the UK. Before Bliss were awarded the contract to manage the venue the Council had undertaken three unsuccessful procurement exercises to secure a long-term operator.
“Due to the current economic climate and condition of the STCC it is envisaged there would be little to no interest from an operator for the venue for any short term operation, without payment of a substantial management fee.
“This is validated by soft market engagement undertaken for the Events Centre project.”
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