THE huge redevelopment of a seafront car park could result in a loss of £25million to the town, a councillor has controversially claimed.

Southend Council is working with Turnstone Estates on a £50million leisure complex on the Seaway car park off Lucy Road, Southend - it will include a cinema, shops and restaurants.

But Independent St Luke’s ward councillor Brian Ayling wants the council to justify its figures and questions why the development wasn’t put out to tender and instead given to Turnstone without competition from other developers.

The council has told the Echo a tender process was not necessary, and is convinced the development will have long-term benefits for the town.

The council sold the lease site to Turnstone for a nominal £1 in a deal which will see the developer finance the scheme and the local authority gain rental income from businesses.

The development has proved controversial with seafront traders who say a loss of parking space will hit their trade in the summer.

Mr Ayling said: “Several of us are concerned whether this is the sort of development we want for Southend.

“The council and planning inspectorate consider there should be 478 parking spaces, but seafront traders say you could get 800 spaces on there. To this date no agreement has been reached on the number of parking spaces that did exist or now exist. “

He said the development could result in a loss of more than £25million over the life of the 152-year lease based on current income from the car park.

Mr Ayling added: “The ground rent is £282,000 or 11 per cent of net income from the whole of the leasehold part of the development. Considerably less than the net parking revenue of £415,000 for 2016/17.”

In response, Andrew Moring, councillor responsible for corporate and community support, said: “We are obligated by law to secure best consideration for our land.

"In this case we have worked directly with Turnstone, an experienced developer of leisure schemes, as a special purchaser. A tender exercise is not necessary through this process and this is standard, lawful practice.

"This is a long-term project which will see the council benefitting from a more stable revenue stream linked to income received across the development, rather than parking income alone which is less predictable.

"The development, including the car park will be privately managed and running costs will fall to the development not the council. We will receive significant business rates.

"This project will regenerate the area, create hundreds of jobs, boost the local economy and bring more people to this area. “