Go ahead given for £1.7m loan to Blackpool Winter Gardens

The council's Shareholder Committee agreed to the request which will see the money provided to the council-owned venue from the authority's £200m business loans fund.

Full financial details have not been revealed but the loan will incur interest rates "reflective of the market conditions, a repayment term and reporting arrangements with any major deviations to be reported immediately", according to the committee minutes.

The minutes add: "The Shareholder Committee considered that in light of the expected increase in income derived as a result of the proposed works that the company would be in a position to repay the loan."

It will be part of a 10-year investment programme with a recent survey showing £19m of upgrades are needed.

Members of the committee quizzed Alan Cavill, director of communications and regeneration, and Steve Thompson, director of resources, about the terms of the loan.

They were assured necessary safeguards had been put in place to protect the council's financial position, and heard "the spending encompassed a wide range of areas where investment was required".

This would reduce the chances of costly future maintenance while introducing changes predicted to increase customer spending and revenue at the historic venue.

The loan will enable investment including in essential infrastructure such as lifts, toilets and other fixtures and fittings.

Blackpool Entertainment Company Limited (BECL), which operates the Winter Gardens on behalf of the council, has provided a business plan and indicative figures to demonstrate the expected increase in income as a result of the proposed work.

The committee approved the loan of £1,731,500 to BECL, along with a set of confidential terms and conditions.

The long term vision for the Winter Gardens includes £4m of essential work to the Coronation Street facade, and a £5m redevelopment of the Horseshoe exhibition area and Pavilion Theatre.

Another £1m needs to be spent on the Church Street facade, and the council has set up a dedicated team to seek funding for all three projects.

Planning approval is in place for changes to the Cafe Mazzei and the Empress Grill, which both open out into the Floral Hall.