North Somerset Council is enduring an annual loss of approximately £250,000 due to the underperforming Carlton Street Car Park in Weston-super-Mare. Although the council owns the freehold of the land, it is obligated to pay over £500,000 yearly to lease back the car park under a 45-year agreement signed in 2012.
The multi-storey structure, plagued by poor construction, has forced the closure of all but the ground floor, leaving revenue far below the rent owed. Council officer Stephen Matthews explained, “We are tied into the lease for another 33 years. We have no choice but to keep paying the lease.”
Last year, the council recorded a £269,000 loss on the car park. Operational issues include non-functional lifts, with one irreparably damaged by water intrusion caused by a flawed slope on the upper decks. This has resulted in frequent closures of the upper floors due to health and safety risks for users requiring lift access. Additionally, failed waterproofing has caused corrosive leaks that damage vehicles parked below.
READ MORE: Historic Somerset Business Rescued from Closure
READ MORE: Taunton Gas Upgrade Accelerates Roadworks to Improve Traffic and Secure Energy Future
Structural concerns have surfaced as well, including cracking and movement within the building, coupled with potential overloading risks from heavier electric vehicles. Water has also seeped into the on-site office space.
Councillors expressed shock over the report detailing these issues. Committee Chair Steve Bridger lamented the situation, calling it “one of the grimiest, most depressing, damaging reports” he has read in six years as a councillor. He also expressed disbelief that a car park built in 2012 could appear so dilapidated, noting it seemed much older.
Efforts to hold designers accountable have failed, as the council’s 12-year window for claims expired in 2024. A survey conducted before the lease began failed to detect critical flaws such as the drainage problem affecting the lifts.
The lease demands the council maintain the building in good condition with at least 350 active spaces available, though the landlord has not enforced this. Mr. Matthews cautioned that the landlord could compel the council to undertake extensive repairs if necessary.
At lease’s end, the council has the option to take ownership of the car park, but in the meantime, it is evaluating its options. These include operating only the ground floor, undertaking costly repairs to reopen upper floors, demolition and reconstruction, or closure—though closure is unlikely given ongoing rent liabilities.
A feasibility study on these potential solutions is anticipated by October, with some options requiring landlord approval. The council must also ensure any refurbishment complies with modern regulations, including provisions for lighting and electric vehicle charging.