In early 2021, the Council was approached by a local business, Coatham Arena Ltd, to explore the exciting possibility of locating at indoor arena on the ex-Coatham Bowl site.
If implemented, the indoor arena development, would require the Council to fundamentally alter the established Coatham regeneration plans and impact on the local area; so careful consideration had to be given to the concept. The Council paused development in order to give Coatham Arena Ltd time to develop a robust business case setting out how the significant arena would be funded, operated and physically accommodated on the site.
Coatham Arena Limited has also requested that the Council donate the land at no cost to the company and given this, the Council considers the detailed reassurance that the project is financially and physically viable is essential.
Coatham Arena Ltd submitted information to the Council in January 2022 and the Council has concluded that while the development could bring significant economic and social benefits the proposed indoor arena development is not appropriate on the ex-Coatham Bowl site. There are specific concerns with regard to:
- Whether the proposed 5,000 seater indoor arena building and associated infrastructure (e.g. car parking, servicing, flood mitigation, ecology etc.) can effectively physically fit on the site;
- The impact of the development in terms of noise, disturbance and visual impact on the surrounding residential area;
- The impact on the local infrastructure including, road network capacity and car parking capacity;
- The overall cost of delivering the project, how it will be funded and operated going forward;
- The utilisation of public funding to assist with the delivery of the development;
- The lack of stakeholder engagement in developing the project;
- Whether the arena is economically viable when considering local and regional venues' market share;
- Whether the development represents value for money.
Cllr Chris Gallacher, Cabinet member for Economic Growth, said:
“After pausing our original plans for around eight months, we now cannot wait any longer to start regenerating the Coatham seafront area and will press ahead with our original plans.
“We believe that a successful arena would be an excellent attraction for Redcar and the wider borough and on that basis, we agreed to pause our plans for the former Coatham Bowl site to allow CAL to develop the plans which would have hopefully demonstrated that the arena was viable.
“This is important for two reasons. Firstly, because CAL requested throughout that the Council donates the land to the project, the Council cannot consider this without reassurance that the arena is operationally and financially viable. The land is a public asset and donating it without cost to a private company is not a decision which would be taken lightly. Councils are funded with taxpayers' money and, as such, we must be sure the project will go ahead without problems before considering this. We are answerable to the public and must provide value for money in everything we do.
“Secondly, there should be evidence that an arena of that size can physically be built on the Coatham Bowl site, taking into account factors including the effect on a residential area, the added demands on roads and parking for arena users and the environmental considerations of building close to the sea.
“It would be fantastic to see an arena in Redcar but based on the information provided by CAL the Council is not satisfied that the proposed site is suitable and that the development as proposed is viable going forward. The Council will work with CAL to explore the potential of alternative sites in the Borough, to try and find a suitable site to deliver an arena in Redcar. Now the Council will physically start delivery on site, starting in April 2022 with the 18 Hole Adventure Golf Course, Children's Play Area and public realm improvements."