The project to revamp Gosport’s Criterion building could leave the borough council stumping up cash to keep it afloat as it would never make a profit.
The proposed flexible, multi-purpose arts space is set to lose money for years.
Gosport Borough Council’s policy and organisation board was told that to start renovating the Criterion would cost £1.42 million. It would then cost hundreds of thousands to keep it going.
The Criterion, in Forton Road, was bought by the council for £600,000 in 2022 as for a new entertainment venue funded by grants.
Consultants Counterculture and Gosport Borough Council officers agreed that even after refurbishment, the Criterion would make losses and the cost to keep it trading could fall to the taxpayer.
Opinions currently vary on when it may break even.
To kick-start the project, an estimated £1.42 million is needed for the ground floor to be opened as a cinema and live pop-up venue.
Counterculture said as much as £325,000 would then be needed to support the venue in total for the first three to five years. It could break even after three-and-a-half years, it added.
Plans also assume a suitable charity can be found or established to run the venue which is hoped to open in September 2025. Time has been allowed to grow an audience of 44,000 visitors each year which is needed for the venue to work.
However a report from the council’s own officers said the council could have to spend £1.4 million propping up the venue for the first five years. That is a worst-case scenario though; it could be as low as £400,000 but is expected to be around £800,000.
The report gave an estimated cost for refurbishing and operating the Criterion of £1.38 million. However, it said the cost could range between £300,000 and £3 million.
Council documents said in a realistic scenario, the Criterion is not anticipated to break even, and would need a subsidy of £113,000 every year from 2028/29 onwards.
Counterculture’s document said the venue could make £27,000 profit a year – or a loss of £203,000 from 2028/29.
While the action to spend the money was approved by the board overall, Tory councillors Philip Raffaelli and Stephen Philpott voted against giving £100,000 to Counterculture.
Cllr Raffali said: “We strongly believe that the sums of money and risks that this project is placing on Gosport Borough Council...is unacceptable and unnecessary and unlikely to ever deliver a successful financially sustainable venue.
“Our view, therefore, informed by the shocking financial implications for GBC, was, and is, that the project should be cancelled and the Criterion sold for commercial development.
Councillor Peter Chegwyn, Liberal Democrat leader of the council, said: “This is a major step forward in bringing the historic Criterion building back into use as a multi-purpose live entertainment venue for Gosport.
“We are progressing towards our vision of providing Gosport residents with a new cinema, theatre and live entertainment venue – which should also support shops, pubs, cafés and other businesses in the surrounding area.”
Counterculture will now bring forward a full business plan.
Comments: Our rules
We want our comments to be a lively and valuable part of our community - a place where readers can debate and engage with the most important local issues. The ability to comment on our stories is a privilege, not a right, however, and that privilege may be withdrawn if it is abused or misused.
Please report any comments that break our rules.
Read the rules here