BOROUGH OF POOLE

CANFORD CLIFFS AND PENN HILL AREA COMMITTEE

6TH OCTOBER 2004

RESPONSE TO A QUESTION ON THE QUAY THISTLE HOTEL BY THE HEADS OF PLANNING DESIGN AND CONTROL SERVICES, PROPERTY SERVICES AND LEGAL SERVICES

  1. The adopted Local Plan does not show the site at East Quay allocated for a hotel. Two particular Policies apply – T05 encourages development that will contribute to the character of the Quay as a tourist destination. Some of the explanatory text refers to the possible extension of the existing hotel, but that is really no more than a reflection of consents that have been granted in the past. It in no way limits the potential of the site – indeed, the Policy encourages a wide range of appropriate uses. Para 10.23 sets out some of the uses and how they might be combined – none of the uses mentioned in that paragraph conflict with the principles that have been set out in the preliminary plans that have been put forward in the last few weeks.
  1. Policy CA16 also needs to be considered. This refers specifically to the hotel and the adjoining former East Quay depot sites. This says that a mix of uses would be appropriate including, but not exclusively, hotel/leisure, residential and A3 type café/bars. The preamble to the Policy foresees the redevelopment of the hotel (paragraph 14.66) and the benefits of retaining it on, or close to, its current site (paragraph 14.67). As with all planning policies, the Council cannot disregard schemes that are worthy in their own right and which contribute to the wider objectives of the Policies. If the hotel were to be relocated to a site that did not detract from, or added to, the tourism base of the town centre, then the LPA would have to consider the merits of such a proposal very carefully.
  1. On the issue of land ownership, the question starts from the wrong premise in that although the Council has a freehold interest, it cannot simply repossess and auction it because of their rights as Lessees in occupation under a protected lease.
  1. The former East Quay Depot and Municipal Club/Corsey site was sold to Quay Hotel Ltd on 7th November 1990. Any future development of the site is governed by a covenant in that disposal restricting its use. The Conveyance includes a Restrictive Covenant “Not to use or permit the Property to be used except as a hotel (being an extension to the hotel erected on the Purchasers adjoining land), and ancillary leisure facilities”, and anything different will need Covenant approval for which a further consideration will be payable. Of course as it was a freehold sale of the land rather than a Lease, it would not have been possible at the time to include in the Covenant a formula to claw-back a share of profits as such, but the valuation for any relaxation of the Covenant would be based on the value to the owners/developers of the obtaining consent to the relaxation and the share of that enhanced value which it would be reasonable for the Council to take for giving such consent.
  1. The Council owns the land on which the existing Quay Thistle Hotel is located and the site is subject to a lease to Orb Hotels Poole Ltd for 125 years from 1st July 1981. This lease was assigned to them on 19th July 2002 with a underlease to Quay Hotel Poole Ltd.
  1. The adjoining site (former East quay depot) was sold by the Council for a potential extension of the hotel in 1990. Any future development of the site is governed by a covenant in that disposal restricting its use.
  1. In terms of any disposal of the existing Quay Thistle hotel site the interest that the Council would have to sell is its freehold subject to the existing lease. The Council’s policy in recent years has been not to dispose of its commercial freehold interests in and around the town centre (Dolphin Centre, former Poole Pottery site, sites in the port etc).
    Should alternative development proposals come forward for consideration the Council will need to consider the additional value that could be generated by these in comparison to the value of its existing interest.

Peter Watson

Head of Planning Design and Control Services

Chris Eames

Head of Legal Serivces

Helen Harbour

Head of Property Services

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