We are the other two shortlisted applicants who were not selected to take over the Winter Gardens

in Ventnor, and are writing to all Isle of Wight Councillors following the delegated decision to award the building to the Hambrough Group at a nominal price. There were three shortlisted applicants who were interviewed for this disposal, and when the Hambrough Group were selected we were given to understand that if any of the three shortlisted groups had been the only applicant they would have satisfied the Councils criteria, but the Hambrough was judged as best. Our main concern is that the published agreement only binds the Hambrough Group to community access to the building for 10 years, whereas the other bidders were intending to allow community access in perpetuity. We believe that if the preferred bidder were not able to honour that commitment the Council should have gone back to the other bidders to see whether a better balance could be achieved. We were given assurances at the public meeting in January 2011 by John Metcalfe, Deputy Director for Economy and Tourism, that community use would continue under the new operator. This assurance was repeated by Mr Metcalfe a number of times including in a letter to the Islands MP Andrew Turner in July when he stated that there is an expectation that the new owner will meet this condition in perpetuity. One of the main criteria for preferred bidder status was quality of community accessibility to the building, and indeed the Hambrough's presentation included the essential commitment to community use, and dialogue with the community organisations. Why then, when this issue was key at the start of the process, are the terms appearing to change? Given the removal of the community access after 10 years (and we also think that it should be affordable community access) this moves the sale into the realms of state aid and best consideration issues. We have attached a Local Government circular explaining best consideration and how it applies to the Isle of Wight Council. It would seem that the Council are handing over a public asset for a peppercorn sum to a commercial operator who will then set up at an advantage against other local traders who have built up their businesses over a long period with their own capital. With a condition guaranteeing community access in perpetuity you can see how the Council can argue that it is the best consideration and does not constitute state aid. Without, it will be much more difficult to argue that they have satisfied these legal requirements when there are other bidders offering identical financial terms, who the Council feel are suitable to take on the building, and are prepared to offer community access in perpetuity.

Additionally, all applicants were given a draft heads of agreement for a freehold disposal which included not only the community access covenant, but pre-emption (for 21 years the buyer would have to offer back to the Council before selling to anyone else) and overage (an obligation to pay to the Council 50% of any enhancement in value arising from planning consents being granted). These have completely disappeared - they are not mentioned at all in the text of the report. Other applications were made on the basis that that they would have to satisfy these covenants which are substantially in the Councils favour and their omission raises further best consideration issues. We are also concerned that completion of the sale will not take place until the undefined Satisfactory Planning Permission has been obtained. As the building is in a conservation area with geological issues this suggests that the building is likely to stay empty, and deteriorating, for some years, whereas both of the other shortlisted applicants would have had the Winter Gardens open for this summers season. The loss of this local facility for an extended period will have a continuing negative effect on the community and viability of Ventnor. We are not seeking to advance any particular bid as an alternative to the preferred bidder but are writing to you on behalf of the community in Ventnor, for whom we do not feel this is the best option. This iconic building has been at the centre of the community in Ventnor since 1936 and we would like to see it continue in this role in perpetuity. We feel these issues are material and would ask you to make representations on our behalf to Councillor Brown before he makes the decision on 18th August. Should this decision be made we would urge you to use your powers as a councillor to call this delegated decision in for proper discussion. Ventnor Winter Gardens Ltd. Ventnor Winter Gardens Trust