Tenby councillors have recommended refusal of a planning application submitted by the developers of the Gatehouse scheme in Tenby, which is seeking a variation on conditions attached to the Royal Playhouse Cinema aspect of the development, which would enable the company behind the project to market the facility for an alternative use.

Following extensive negotiations with planning officers, local members and interested parties, planning permission was granted by the Pembrokeshire Coast National Park Authority's development management committee earlier this year for the construction of 39 apartments, a 68 bed hotel, three commercial units, a public square, new access, car parking and a replacement cinema.

However, although the developers, South Terrace Properties Ltd. and C2J Architects, have been able to set in motion aspects of the scheme, with contracts now in place with a successful national operator interested in developing a modern hotel facility, a replacement cinema to fill the void left by the Royal Playhouse Cinema, has proved a stumbling block for the progress of the scheme.

"The single factor holding back the funding of the scheme is the failure to attract any company or individual to lease the cinema element of the scheme," said a supporting statement to the application submitted to the National Park Authority from the developers.

"With the cinema representing more than 50 per cent of the commercial development excluding the hotel, in the absence of any potential lease, the adverse impact on the revenue flow to the development is preventing the developer securing a final funding package.

"The developers' national property advisors have been unable to gain any interest from recognised operators, despite extensive marketing, and do not believe an operator can be found, even when the projected growth in the national economy eventually occurs.

"Even if substantive Welsh Assembly or community funding were available, such are the development costs which have now been quantified as part of the tender procedure, unfortunately it is clearly evident that the cinema would not be a long term viable proposition," added the statement.

Discussing the application at Tuesday night's meeting of Tenby Town Council, members were sympathetic to the fact that the option of a one-screen cinema at the location might not be considered appealing to a large chain, but said that they would like to see every effort made by the developers to market the scheme with the cinema aspect maintained.

"If it's going to hold the rest of the proposals up, then we'd have to reluctantly accept the application, but of course we'd be very disappointed if we didn't have a cinema," said Clr. Mrs. Tish Rossiter

However, her colleague, Clr. Mrs. Trisha Putwain, proposed that they should refuse the application until the developers could demonstrate that every effort had been made and every avenue had been explored into marketing the site as a cinema.

Councillors agreed to recommend refusal of the application when responding to the Pembrokeshire Coast National Park Authority's development management committee, who are set to discuss the proposal at their meeting on February 22.