Vacant sites at Waterloo Square and Esplanade could be bought by Arun council to unblock development

The purchase would be for the leasehold interests in the former Beach Hotel site facing the Esplanade, as well as 2-4 Waterloo Square , as the council already owns the freeholds.

If successful, the land would then be sold on, subject to planning approvals being renewed.

This was supported in private exempt business by Arun’s economy committee on June 13, with recommendations now going to the policy and finance committee and then full council for final approval.

The recommendation would allow officers to accept the offer in principle for Arun to purchase the leasehold interests for £1m, ‘negotiating and agreeing all further details with B5 Limited as necessary and executing all formal documentation necessary including applying the council seal to secure and complete the deal’.

The money would need to be borrowed from the Public Works Loan Board to fund the purchase of the leases.

Minutes of the economy committee described how the council said it felt there was an opportunity to gain some revenue, but some members had concerns over the lack of options presented on what to do with the site.

A previous application to build on the old Beach Hotel site, ravaged by a fire in 2016, for ten new flats and two restaurant/retail spaces, was approved in 2021 but stalled in planning – with another application for 45 new flats across all the sites being refused a year earlier.

Leader of the council Matt Stanley (LDem, Marine) said he expects the purchase to be approved by the full council, due to wide support for the idea when it was put in front of the economy committee.

He said: “We have had advice from our experts in the council and they’re supportive of the process.

“The site has been vacant for a long time and it is not a particularly attractive part of our seafront – I’m keen to see the site developed.”

He said it would be something ‘nice’ to do for the people of Bognor Regis, and that he was supportive of any future developments that would benefit the town and its seafront.

Leader of the Conservative group Shaun Gunner (Con, Rustington East) said that although he was in favour of the purchase itself, he was not in favour of selling the freehold lease, and that the council had not considered all its options appropriately.

He said: “The other thing I would say, the million pounds, we’re borrowing that money so we’re paying interest on this as well.

“Councillors have got to consider all of the options and they have not done that.”

According to Mr Gunner, the committee voted in favour of selling the freehold lease to the open market seven to four. Seven members of the Lib Dem, Green and Labour coalition, including Mr Stanley, voting for and the four Conservatives voting against.

Some of the suggestions Mr Gunner had for the development included extra social housing, retail or hospitality spaces like bars or cafes or a hotel to help fill a ‘shortage’ of overnight accommodation in Arun.