Coatham Arena, Redcar: What we know so far about potential £70m project

They were told by Jim Frayling, a consultant director with the company Mott MacDonald, an international engineering, management and development consultancy brought on board for the planned project, the arena could be a “phenomenal asset” and host events “brilliantly better” than other venues in the North.

Discussions have been going on behind the scenes since between Redcar and Cleveland Council and representatives of Coatham Arena Limited (CAL), the company vehicle set up with the aim of promoting the project and securing the land required.

An online petition set up to support the construction of the new arena received nearly 6,500 signatures, while a show of hands at the public meeting revealed those in attendance were to a man in favour of the plans, but many obstacles still remain.

So where do things stand at the moment, how did we get here and what’s the likelihood of the arena ever coming to fruition? Stuart Arnold breaks it down.

What is being proposed?

CAL’s aspirations are for a “state of the art” indoor venue with 5,000 plus seats, hosting entertainment, sporting, conference and exhibition events all around.

It would contain a unique design with “ingenious” retractable seating, along with a rooftop lounge bar and a large plaza to be situated outside the main entrance.

It claims such a venue could mean hundreds of jobs being created, attract new visitors to the area and act as a “catalyst” for further investment in the town.

There would also be “spending, reputation and brand benefits” and the arena would fill a gap in the region for a major cultural hub.

What’s the latest?

Recently CAL said negotiations with the council were nearing a “key juncture” and “subject to the successful conclusion of the negotiations” it was expected an option agreement for the land for the arena would be signed in the near future.

This would allow a detailed planning application to be submitted addressing numerous issues such as transport and access arrangements, the impact on the surrounding residential area and environmental and sustainability elements.

It claimed, with the granting of planning permission, the arena could open by 2028, some way behind the “best case scenario” previously mooted for August next year.

CAL chairman Frankie Wales said: “We are very pleased that our negotiations with the council are coming to an end and that the results prove satisfactory to both parties.

“Agreement will mean we can then progress with the preparation of our detailed planning application.

“The process has taken time, with a project of this scale and complexity it has been important to ensure we dot all the i’s and cross all the t’s.

“We are particularly grateful for the encouragement of the council and our many supporters.”

Council leader Mary Lanigan said “The council is proactively working with the Coatham Arena developers on an option on the land which will then give Coatham Arena Limited the security to develop its plans further.

“The principle of an arena is welcomed and private investment is always encouraged in the borough and we will work with the Coatham Arena developers to give them every chance to succeed.”

Why is the option agreement so important?

Without it the project can’t go ahead, especially as those involved have rejected other potential locations proposed by the council, such a site in South Bank alongside the A66.

So it provides the key going forward and could unlock options for the project.

The most likely outcome from the outside looking in is that a long-term lease could be agreed with several conditions built in to protect the council’s interests and ensure it does not lose out financially.

Inevitably, the local authority will also want to retain some kind of stake going forward – why would it allow someone else the land otherwise?

CAL has suggested the council could provide the land free of charge in recognition of the wider economic benefits a new arena could bring, although some might consider this would be a somewhat generous undertaking especially given the cash-strapped circumstances the local authority currently finds itself in.

What about the money?

This is the big question for many.

Mr Frayling has admitted the finance required would only flow from securing the site, although nothing has been said publicly about who has expressed interest in investing in such a costly project – CAL having put a £70m figure on the arena in its recent press release.

The council has been open to the idea of a new arena – having previously rejected an initial business case put forward and suggested the site may not be suitable – but reservations have been aired about how it will be funded and whether any liability could fall on the taxpayer.

Mr Frayling suggested at the meeting the council could “prime the pump”, in terms of contributing to the costs in some way, while potential support from the Tees Valley Combined Authority has also been mentioned, but he also said the scheme could be realised without public sector cash.

Philip Deighton, of Destination Developments, another firm involved in the plans, which provides consultancy services to the leisure and tourism sector, claimed the council would be “ring fenced” against the liability for any costs with CAL and its partners underwriting any operating losses incurred up to a certain value.

He told the same meeting there were a number of financial institutions interested in financing the scheme and “we are also in conversation with experienced operators who would bring money to the table”.

CAL’s website suggests financing could be met from “public subscription, the sale of shares, grants, donations and operator fees”.

Once operational the arena is forecast to be “profitable and totally self-funding”, earning revenue from charges to hire the venue, booking fees, sponsorship, branding rights and trading activities.

Aren’t the council already on with leisure projects in Coatham?

Yes, planning permission was previously secured for a new 100 space car park, along with an adventure mini-golf course and a children’s play area, work on which has begun.

A £6m, 42-bed hotel and watersports centre are also planned for the sea-facing side of Majuba Road.

Why the Coatham site?

CAL says there is “no better site” than that previously occupied by the Redcar Bowl, which was demolished in 2014, since it is easily accessible by road, without major impacts on the town centre, within walking distance of nearby bus stops and the town’s railway station.

There are also 1,200 existing car parking spaces within a ten minute radius, with consideration also being given to underground car parking and a potential park and ride facility.

There would also be a obvious synergy between the arena and the planned leisure elements the council is bringing forward, not least the hotel, which would be a short walk away

What do we know about Coatham Arena Limited and those involved with it?

The company’s listing at Companies House describes it as being involved in the development of building projects.

Last month it filed a set of ‘dormant’ accounts showing that up to the end of May last year it had no net assets or reserves.

The current directors describe themselves as all being Redcar residents and passionate about reviving the resort, and consist of local property developer Martin Poulter and chairman Mr Wales, who describes himself as a social entrepreneur.

He is a former boxer who founded Redcar Amateur Boxing Club in 1999, coaching countless youngsters in a bid to get them off the streets, and also played a prominent role in turning the previously disused Coatham Memorial Hall into a much-used community facility.

Other directors are hotelier and publican Roy Myers, who many in the town will know as the owner of O’Gradys for the past 23 years, and Redcar-based comic and campaigner Chris McGlade, while a company secretary is listed, Paul White.

Another local property developer Stephen Green, who had been a director of CAL, is shown as having resigned in January.

Meanwhile, current Cleveland Police and Crime Commissioner Steve Turner, who is from Redcar, previously outed himself as a non-executive director and has publicly backed the arena plans.

What hurdles remain in terms of the arena project?

Well, quite aside from the option agreement actually being signed, a change of administration at the council following local elections in May could prompt a fresh look at the plans.

Labour, it is understood, has already committed to reviewing the new Eston pool project, whose costs have been spiralling, should it gain control from the current independent/Liberal Democrat coalition.

Unlike the arena project, that is already ‘on the books’ having been included in the council’s capital investment programme with money committed towards it.

The economic climate has also changed quite a bit in the past few years, having been subject to shocks from the covid-19 pandemic and the war in Ukraine, which has had worldwide knock on-effects.

Energy costs, the cost of labour and materials have all rocketed and will undoubtedly have a major impact and be key to any financial considerations.

Planning may also not be a foregone conclusion should any application be ‘called in’ either by local councillors, or as a result of a certain level of public representations being reached.

Last year, asked about the possibility of success with the project, Mr Frayling said it would be “difficult, but possible”.

He also said modelling had been undertaken and shared with the council showing that such a development would easily fit onto the proposed site, along with any associated infrastructure.

What backing has been received for the project?

This has been one of the most eye-catching features of any publicity so far.

Aside from support from the public, the likes of rock stars Sting, Middlesbrough-born Paul Rodgers, formerly of Free, and Whitesnake’s David Coverdale, who once lived in a flat in the centre of Redcar, have all been quoted as saying it could make the town a destination again for the world’s greatest acts, some of whom once played the Coatham Bowl.

Other endorsements are said to have come from the likes of Matchroom Sport founder Barry Hearn.

Redcar MP Jacob Young, Tees Valley Mayor Ben Houchen and Coatham ward councillor Carl Quartermain have also indicated their support.

Cllr Quartermain said: “Watching over the regeneration of Redcar it has become clear to me that the town is still lacking that one major attraction that brings visitors in.

“The Coatham Arena plan would be a venue fit for a progressive and forward thinking coastal town.”

However such backing – showbiz or not – will in reality count for little until there are actual spades in the ground.