Investors told to bid now for former Palm Court hotel site
WOULD-be investors have been told to get moving on the fate of Torquay's Palm Court hotel site — or Torbay Council will buy it itself.
Deputy Mayor Chris Lewis said he wanted to see the current seafront property knocked down by winter and rebuilt soon after.
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Cllr Lewis said: "We're not going to hang around for another three years.
"A compulsory purchase order is the last resort. We're hoping that developers will put a bid in and will get on with it.
"I want to see the Palm Court knocked down by winter and a new hotel built soon after.
"There is planning permission in place for a new hotel so there is no reason why developers can't get on with it."
The call for developers to "get on with it" and sort out the prime location eyesore comes as several bids have been received by administrators PriceWaterhouseCoopers to buy the run-down Palm Court Hotel.
The prominent seafront site was put on the market after the company behind a project to redevelop it went into administration in February.
When last marketed in 2005 the former hotel was priced at £5million but did not sell.
PriceWaterhouseCoopers have since invited sealed bids for the prime site in Torbay Road.
A company spokesman said: "The process was successful. We have had a number of offers, some of which will be put to the bank."
Development plans have been on the table for eight years, but work never started.
Cllr Lewis confirmed Torbay Council is not and never was one of the bidders.
He said: "We haven't got the money for it.
"The main thing is that it went out for tender. It's better if we get the private sector to get involved. It was never on the cards for the council to put a bid in.
"But we want to see things moving and we will look at taking action such as a compulsory purchase order if things don't progress."
Cllr Lewis said should Torbay Council be forced to purchase the Palm Court Hotel money would be spent on tidying and cleaning up the seafront property in conjunction with a developer before selling it on.
The building is owned by KC1 Ltd which went into administration owing HSBC £3.1million.
KC1 was part of Newton Abbot-based residential and commercial property company Riviera Group Ltd, which has owned the building since 2001. According to the adminstrators report the directors are named as Ian Mitchell and David John Pollard (resigned).
According to the latest report the Riviera Group Limited may have no recoverable assets and total liabilities are likely to be around £6million.
The report states its principal assets on its balance sheet included the shares in subsidiary companies.
However the administrators believe no value is recoverable from these shares with the exception of one company called Demoujour Property Company. Following negotiations with parties interested in Demoujour, the administrators say they cannot comment further at this stage.
Of KC1 and another subsidiary KC2, whose director is named as Ian Mitchell, the administrators said they had initially received little information about the planning applications for the Palm Court Hotel and a site in Great Torrington.
Having put the Palm Court up for sale, the administrators said they were now assessing the options for the other site at Great Torrington which would be advertised for sale.
The report goes on to say that a review of conduct of directors of the company has been carried out which will be reported to the Department for Business, Innovation and Skills. The report says that 'for confidentiality reasons we are unable to give any further information'.
The debt to HSBC is secured by charges over the assets of the companies, says the report. The bank is expected to get a dividend following the sale of properties owned by KC1 and KC2.
"However it is unlikely that the bank will recover its lending in full," says the report.
Neither Ian Mitchell nor David John Pollard was available for comment regarding the new bids for the Palm Court Hotel.
19 Comments
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by Paul Ward, Kingsteignton
Wednesday, September 01 2010, 11:45AM
“King Canute, Torquay
I have pointed out the vast wastage of resources that Torbay Council have made. I also pointed out that Nick Bye said he and the Council could not make a 25% saving in budgets and that he through the Council was considering buying a building for approx a payment of £3mill - £5mill (going on the 2005 price of £5million). At no point did I state it was a good idea to buy the site as you say that was other peoples ideas. I do not think Torbay Council has the money to waste on buying the Hotel site nor should it get involved with a commercial scheme, this just shows Nick Byes background of estate agent.
What I believe is that Torbay Council should involve it¿s self with is collecting rubbish, keeping the streets clean and tidy for both residents and holidaymakers, filling in potholes in the roads, making sure that the 5,600 children that are living in poverty in Torbay are looked after, acting within the law, cutting the vast amount of wastage in money, getting truancy rates and underage pregnancy levels down ect.
Torbay is not economically viable as an Authority, it should never have left Devon County Council, Plymouth has enough trouble trying to stay afloat and they are much bigger than Torbay.”
by King Canute, Torquay
Wednesday, September 01 2010, 9:25AM
“Typical informed comments - Karl Marlden's Nose and mr crosby suggest that it's not cheaper to knock it down. Can you please provide figures? Or are you going to tender for the building and put your expert knowledge to the test?
Paul Ward, please explain how the proposals from others for the council to 'sort it out' will save my money? What are the council supposed to do to a business that, as D i c k rightly points out, went bust because of market forces?”
by D I c k, Torquay
Tuesday, August 31 2010, 11:11PM
“When was this story written as no one was working on the council yesterday and definitely no one was working at the banks...it was a Bank holiday, I suggest this was a sleeper story held back for a bad news day.
If you look at the other stories on here today no one can be bothered to comment save for the old favourites on this story.
As for this story I have said before many of the hotels and apartments are in the hands of the bank.
Bye and Lewis are just con men , failed at everything including running the council, no one seems to be able to stand up to them, other councillors I mean, the only one that does is Ruth Pentney and she does it all rhecwrong way.
Palm Court is a prime site, never has been, that is why it went bust...prime site my backside.
Lewis wants the place pulled down before the end of winter....if that is the case why did he not get Rock Walk sorted and sooner and at a quarter of the price.
Paul Ward is spot on...what a set of clowns we have running the business of the council...pathetic.
Return the keys loser Bye to Devon CC and let them sort your mess out it is not to late...Torbay Council is a miserable failure and that is it, all that money saved.”
by mr crosby, torquay
Tuesday, August 31 2010, 9:22PM
“There is no need to knock this building down, renovation is what it needs and the cost would be much cheaper.”
by Paul Ward, Kingsteignton
Tuesday, August 31 2010, 7:23PM
“Contradictory?, Torbay
Just remember that it is YOUR money the council is wasting”
by Paul Ward, Kingsteignton
Tuesday, August 31 2010, 7:22PM
“Contradictory?, Torbay
Just remember it is YOUR money the council is wasting”
by Contradictory?, Torbay
Tuesday, August 31 2010, 4:39PM
“Typical contradictory comments - people like Paul ward criticise the council for wasting money, and the rest of the posters want them to sort it out! It's a free market and this is what you get - if the council had stepped in then everyone would be complaining that the council are getting involved and wasting money.
Or is it that people will just complain whatever?”
by Ian, Torquay
Tuesday, August 31 2010, 4:35PM
“It needs to be realistically priced to sell. Yes it is a prime spot but it's also close to roads on the back and front and the building doesn't have a massive footprint. The costs of pulling it down will be substantial. Would be a blessing if it burnt down like the hotel on Daddyhole Plain? Any takers.”
by B, Torbay
Tuesday, August 31 2010, 3:36PM
“What is the rebuild cost on this? I seem to recall £10m being mentioned in the past. But maybe I'm wrong.
With the Sherwood being offered for £600k, and the Grosvenor on the market for £1.5m, you'd have to be confident investing in the Palm Court.
Somebody make sure Councillor Lewis has a plan before he's allowed to do anything. I wouldn't want them to be making it up as they go along, as they did with Rock Walk.
If the council have £10m, make a start at sorting out the harbour by the Pavillion, instead of inviting a developer to spoil the harbourside.”
by Mr Whistler, Paignton
Tuesday, August 31 2010, 3:29PM
“Another contradictory statement from Cllr Lewis. He talks of compulsory purchase orders in one breath and then says the Council has no money! What sort of credibility does this give him and the Council?
Something has to be done with the Palm Court but please do not even think of wasting council taxpayers money on this particular white elephant.
It is clear that the Mayor and Cllrs Lewis and Carroll are incapable of running this council in a business like manner.”