Council proposes developing Scarborough’s former indoor swimming pool into major hotel after planned deal was scrapped last year

North Yorkshire Council is proposing that the site of Scarborough’s former North Bay swimming pool be put on the market via a competitive tender process so the authority can find a development partner with which to construct a hotel.

It comes almost a year after the now-defunct Scarborough Council approved the sale of the former swimming pool’s site with a plan for it to be turned into a £15m, four-star hotel by local businessman, Nick Thomas MBE.

Scarborough businessman Mr Thomas wanted to develop the site privately through his business Qdos Entertainment and HQ Hotels.

However, the purchase of the land and the ambitious plan for the four-star plus, 100-bedroom hotel was withdrawn by Mr Thomas and his wife following criticism of the then-North Yorkshire County Council which would have had to approve the sale.

North Yorkshire Council is now asking councillors on the Scarborough and Whitby Area Constituency Committee (ACC) to approve the plan for the site to be put back on the market and turned into a hotel which would support “the need for more high-quality accommodation within Scarborough”.

The swimming pool opened in January 1973, but had remained closed and boarded up since June 2017 following the opening of Scarborough Sports Village and was finally demolished last year.

‘Significant interest in the site’

A report prepared for the upcoming ACC meeting on Friday, June 9, states that there remains “significant interest in the site for the purposes of high-quality hotel development” and that delivery of the North Bay masterplan remains a “key strategic focus for the future growth and prosperity of the town”.

It adds that as the local government reorganisation transition is now complete, North Yorkshire Council should “maintain this momentum and facilitate progression of the development”.

The originally proposed scheme would have delivered £15m of private sector investment, more than 100 jobs created with living wage salaries, 70,000 additional overnight stays a year, and around £3.4m a year of additional visitor spending, according to the council.

The authority has said that expedient delivery of the scheme would provide “direct economic benefits through job creation, hospitality sector diversification and growth”.

However, when HQ Hotels decided not to purchase the land, it was the new authority’s predecessor that was criticised for the loss of investment.

Steve Siddons, the former leader of Scarborough Council, said at the time: “The way that the new unitary authority has used its powers has led to a lack of confidence by a major investor.”

He added: “At a time when every local authority is searching for ways to deliver regeneration and improve residents’ life chances, North Yorkshire’s behaviour makes no sense.”

Financial implications

The North Bay site which is proposed for development is currently the location of around 137 public car parking spaces which provide key parking provision during peak periods as well as income of around £76,000 a year.

However, the authority has said that the current overspill car park, located on the grassed area to the west of the site could have parking metres installed, whilst the North Bay masterplan also proposes the creation of around 700 additional multi-storey parking spaces.

The authority has also said that the full financial implications of the scheme “will only be known once tenders have been received and development agreements are in place” but has estimated that comparable operations within the area attract business rates of around £130,000 a year.

Subject to input and approval by the area committee, council officers are set to progress a report to the authority’s executive recommending a competitive tender to procure a development partner for the site.

If approved, the authority will undertake “soft market testing”, market the site, and select a development partner.