Public reports pack PDF 6 MB - East Lindsey District Council

2.0. INTRODUCTION2.1. This report recommends options for the future management of theshort-let chalets in the context of the views of chalet users; thepotential capital costs for improvements; the current levels of usage;the current revenue running costs. It seeks to stimulate investorinterest in the existing chalet stock, as well as promoting scope forfurther private investment in the coastal areas more generally.2.2. A consultation was carried out with Sutton on Sea and Mablethorpechalet users (Appendix B) in the 2007 summer season, to assesssatisfaction and to canvass thoughts on possible improvements. Thesurvey showed that respondents valued the provision of the chalets,recording high levels of satisfaction. Issues raised regarding cleanlinessand booking procedures were resolved for the 2008 season. However,overall, there was concern that while hire fees increase each year tocover rising staffing and other costs, there are no changes orimprovements scheduled to improve the quality of the chalets.2.3. A full condition survey of the chalets was completed in Spring 2009.This set out the cost of urgent works, which were carried out before thechalets opened on 16 May 2009, funded from existing budgets at a costof £13,405. Without this, these chalets could not have been let. Thecondition survey shows ongoing costs for the next 5 years of around£223K to maintain the chalets but without improving their quality.2.4. This paper proposes a redevelopment programme, costing around£90K, allocated from the Council’s agreed capital programme, whichshould generate a capital receipt of around £234K, therefore realising asurplus of £144K which would allow the Council to undertake most ofthe ongoing work required to maintain the existing stock and pumpprime a further phase of redevelopment if appropriate.2.5. This development also seeks to prompt private investment in theexisting chalets, by market testing some of these, and to stimulatepotential new development by private individuals or businesses, in thechalets but also in the wider coastal environment.2.6. Chalets are available to hire from mid-May to mid-September, stayingopen for the annual Festival of Bathing Beauties. Occupancy figures forthe 2007/08, 2008/09, 2009/10 and 2010/11 seasons for all three siteshave been translated into percentages as shown below:Site 2007/082008/092009/102010/11occupancyoccupancyoccupancyoccupancyCentral Promenade,Sutton on Sea44% 42% 43% 37%Page 92