SOUTHEND Council is set to invest £10million into the Seaway leisure scheme after the developer said it had became financially unviable to move forward without help.

Turnstone Estates’ long awaited £50m leisure complex on the car park off Lucy Road, Southend is currently unable to attract investors in the current market.

This is because if it were to be sold once completed, according to current commercial property prices, the developer would get less than they had put into the scheme.

Rather than see the ambitious scheme fold, the council wants to invest in it in order, it says, to create jobs and a “leisure industry worthy of a city”.

The cash will come from the council’s capital reserves and will see it tied into a 40-year annuity leasing agreement, after which it will have the opportunity to buy the whole development for a nominal £1.

In return the council will get a bigger return by keeping any rents and car parking revenue from the development.

Ian Gilbert, leader of the council, said: “This proposal demonstrates another bold and confident move by the council in delivering on its promise to support and invest in our economic recovery.

“The Seaway scheme plays a vital role in our regeneration story, and as we move forwards with projects that deliver the new housing we need, it is equally important that we create new jobs and exciting places where people want to visit and spend time and money locally.”

The scheme includes an 11-screen Empire Cinema complex with IMAX, a 20-lane Hollywood Bowl, an 80-room Travelodge hotel and 555 public car parking spaces, with three restaurants and a new public square.

These companies are said to still be committed to the development.

More than 500 new jobs are expected to be created along with £50million private investment and a £15m boost to the economy.

The proposal would also secure a long-term sustainable income stream for the council.

Paul Collins, cabinet member for corporate services and performance, says: “This proposal shows that the council has full confidence in our soon to be city, and is boldly and directly supporting its economic recovery and regeneration.

“This proposal is a move that we need to make – it will enable us to unlock a key council-owned asset, ensuring the delivery of a year-round all-weather leisure scheme that will attract both local people and those from further afield into the area, create local jobs and ensure the council has an ongoing and long-term yearly income, with the full income and value of the site fully passing to the council at the end of the income strip lease term.”

The proposal will be discussed tomorrow by the council’s cabinet committee.