Proposal to pay £3m to unlock prime site

THE deadlock that has held back the regeneration of Porthcawl for decades is set to be broken in a £3m land deal.

Conflicting interests with the families which lease a large portion of seafront land have prevented the landowner Bridgend council from bringing forward schemes, leaving residents disappointed and frustrated.

But now the authority is proposing to pay the two local Evans families £3m to relinquish their rights.

It would bring to an end the socalled owners’ agreement on phase one, which would have seen the leaseholders pocket 40% of the receipts from any development.

If approved by full council, the deal would give back total control to the authority.

It believes redevelopment work could start as soon as 2019 as a result.

It would also bring to an end four decades of uncertainty for the town during which three regeneration master plans have failed to deliver.

The last scheme, known as Seven Bays, relied on huge inward investment of at least £12.5m from a major supermarket to act as a catalyst and pay for infrastructure improvements, including improved roads and flood defences.

It had been agreed by both the council, which would have had 60% of the return, and the leaseholders and was set to move forward, but Tesco and then Morrisons pulled out.

The scheme had also been unpopular with residents as it would have seen a 50,000sq ft supermarket built on Salt Lake.

Council leader Huw David said it has received further offers from developers since then, but has been unable to agree on a way forward with the leaseholders due to conflicting interests.

Mark Shephard, council corporate director for communities, said: “The headline is that we are unlocking regeneration because it’s been a frustrating time for everyone.

“While there won’t be a spade in the ground next year, we would hope that by 2019 we would have a spade in that ground.

“There are inevitably some risks, but it’s a pretty safe bet in terms of investment.”

A council report, which will go before cabinet and full council for approval next week, states that it was the Evans families – one of which runs the fairground while the others are property developers – who proposed the council purchase their leasehold interest, which would not have run out until 2033.

The cost of purchasing the lease will be funded by the council’s capital budget.

The £3.3m price tag was arrived at after two independent valuations and consultation with the Wales Audit Office.

Mr Shephard said infrastructure improvements will still need to be carried out, which will cost around £5m.

Mr Shephard said the phase two landowners’ agreement – which is intended to redevelop the Coney Beach funfair and former Sandy Bay caravan park in the long term – is unaffected by this deal.

He added Pat Evans, owner of the funfair and operator of the car park at Salt Lake, will be given the licence to continue to run it in 2018 as it is unlikely development work would start then.

Coun David said the Local Development Plan, a legally-binding document, meant there had to be an element of housing.