Costa pulls out of Southend seafront development

Costa Coffee was all set to open an outlet in the circular building next to the Pier Hill lifts, but 12 years after it was first built, it has yet to attract a tenant.

The chain, which was announced as a prospective tenant last March, tried to make adjustments to the lease which were “unacceptable” to Southend Council. The authority has had to repair the building costings hundreds of thousands down the years.

But Gerard Biagioni of estate agents Dedman Gray, which is marketing the 2,000 sq ft unit, said 16 businesses have so far expressed an interest in it.

He said: “It is like a sleeping giant. It has been difficult to lease out, and I’m surprised by that. Sometimes you get units that you think will be easy to get someone in, but instead it takes a long time.

“Costa wanted some minor adjustments to their lease – they are very rigid on their commercial space – and this was unacceptable to the council.

“We have had 16 expressions of interest so far, including from a high class fish and seafood restaurant, and coffee shop operators. It is a very, very exciting opportunity as it is a landmark building.”

The unit was first built in 2004 as part of the £6million Pier Hill redevelopment under the previous Tory administration, funded by European Union money.

But in 2008, the council had to fork out thousands in repairs after the building was found to be flooding during downpours.

Independent Ron Woodley, leader of the council, said: “Costa withdrawing was extremely disappointing, but we have been remarketing it through our agents, Dedman Gray. We are advised that a number of offers are expected, and are inviting full expressions of interest to be provided by Friday, January 29.

“We very much hope that a keen new tenant will soon be signed up to open this facility for the benefit of residents and visitors.

“It is in a key Southend location and will be a great seafront asset, as well as offering the tenant the chance to be part of Southend’s continuing and flourishing regeneration.”

It is the second time in a matter of months Costa has withdrew from a Southend development, having agreed to have a stall inside the planned Kursaal building revamp.

However, it managed to expand its Southend borough empire by opening a unit in Thorpe Bay Broadway last year.

A Costa spokeswoman said: “Costa have pulled out of this site due to property rental negotiations.”

Any business interested in the unit can call Dedman Gray on 01702 311111.

Council has lost hundreds of thousands

Southend Council has lost hundreds of thousands on the Pier Hill building down the years after a couple of false dawns.

The Echo reported as far back as 2006 a lease was on the verge of being signed. The council was in negotiations with businessman Peter Woolf, who wanted to turn it into a restaurant and ice cream parlour, for years until he died in 2013.

Costa was announced last March as the preferred tenant, but pulled out just before the New Year.

Back in 2008, the Echo reported that the building had been flooding and needed repairs which ended up costing more than £135,000 of taxpayers’ cash.

Each year the building has lain empty, the authority has lost out on rent worth £21,000.

However, council leader Ron Woodley, who has previously criticised the former Tory administration’s running of the site, said there was no running costs on the building.

He said: “Fortunately, because the unit is only a shell, it has no holding costs so while we must now wait longer before receiving income from it, there are no additional costs arising from this extra delay.”

Paul Thompson, who is chairman of Southend Seafront Traders’ Association, questioned whether the council’s demands were too high.

He said: “If it has been empty for so long, are the council asking for too much money?

“It’s a shame they have pulled out as it is was a good opportunity for a national chain to come to the seafront.”