Tenby Gatehouse Hotel development in the balance as Park turns down cinema change plan (From Western Telegraph)

Tenby Gatehouse Hotel development in the balance as Park turns down cinema change plan

3:59pm Wednesday 22nd February 2012 in News

The future of a multi-million pound development in Tenby is hanging in the balance after planners refused a proposal to change the use of the Royal Playhouse Cinema today (Wednesday).

South Terrace Properties Ltd had previously been granted permission to redevelop the site of the Gatehouse Hotel, including the cinema to provide 39 apartments, a 68-bed hotel, three commercial units and a replacement cinema.

Pembrokeshire Coast National Park's Development Management Committee heard that the new application sought to change the use of the cinema to allow use for retail, financial, food and drink uses.

The application said use as a cinema was not viable.

The applicant had verbally agreed to pay a commuted sum of £11,594, which would have gone towards upgrading nearby community facilities, with park officers recommending the application for approval.

Speaking on behalf of the applicant, Simon Fry said the cinema would not be viable as the capital investment of more than £900,000 required would not be recovered for "in excess of 20 years," adding the estimate was reached using "optimistic figures."

He said that although there had been "positive discussions" regarding potential funding "unfortunately no lender will support an unviable proposal."

The report said: "The applicant submits in the absence of funding, the retention of the cinema would prejudice the funding and implementation of the overall scheme."

National Park members and Tenby County Councillors Mike Evans and Michael Williams pointed out nothing had been done to improve the appearance of the site since the original permission had been granted. Cllr Williams dubbed it "a disgrace."

Cllr Evans said: "The original application wasn't exactly what this authority wanted or the people of Tenby wanted but we agreed due to the understanding the cinema could be saved."

The authority's Head of Development Management, Vicki Hirst warned that she had "a real concern" the application "may not go ahead" if the application was refused.

Members voted to refuse the application by a count of ten to four with one abstention.