North Somerset Council faces a tough financial decision with a £2.6 million repair proposal for the Carlton Street car park in Weston-super-Mare. Despite the hefty investment, the car park is projected to continue operating at a loss, though significantly reduced—from £269,000 in 2024/25 to around £169,000 annually.
Council leader Mike Bell has openly criticized the lease agreement, describing it as “the worst deal any council has ever signed.” The council is locked into a lease that runs until 2058, with rising rent costs despite the car park’s poor construction. Structural weaknesses have forced the closure of most upper floors, severely limiting capacity.
The repair plan aims to reopen these upper floors, albeit with fewer parking spaces—around 330 compared to the lease requirement of 350—offering the best financial outcome among the options available. Other alternatives being considered include permanently closing the upper floors, which would increase losses to £71,000 a year but violate lease conditions; fully closing the car park, leading to a £473,000 loss and lease breaches; or demolishing and rebuilding at an estimated £14.7 million cost, resulting in a £1.17 million annual loss.
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Originally signed in 2012, the 200-year lease arrangement means the council leases back the car park from its freehold owners and cannot assume ownership until 2058. Legal advice suggests there is no clear basis for pursuing damages from the developer, contractor, or surveyors involved.
The council’s capital budget has already earmarked £2.75 million for the repairs. This is separate from the revenue budget, which faces strain due to rising social care costs and government funding cuts—factors underpinning a recent 8.99% council tax increase. While capital and revenue budgets are distinct, borrowing for repairs could add to future financial pressures via interest payments.
Council officers recommend proceeding with the repairs as a pragmatic measure to mitigate losses, reflecting the challenging legacy of the original lease deal and the need to keep the car park operational where possible.