A £7 MILLION regeneration of Watchet could be one step closer if the group in charge secure a council loan.

The Onion Collective, a community interest company, was set up in 2013 after a planned commercial redevelopment of the town’s marina fell through.

The company was awarded planning permission by West Somerset Council in June 2018 to revamp the East Quay site, including self-catering holiday pods, offices, a restaurant and an art gallery.

The group has asked Somerset West and Taunton Council – which will replace West Somerset Council in April – for a bridging loan to allow them to begin construction while awaiting the outcome of further funding bids.

The new council’s shadow executive has agreed in principle to lend the company up to £1.5M and has agreed a lengthy lease with the company concerning the site.

The regeneration project is expected to cost around £7M, of which up to £5M is expected to come from the Big Lottery’s coastal communities fund.

To date, the Onion Collective has secured £150,000 from the Esmee Fairbairn Foundation, £120,000 from the Social Investment Business Group’s community regeneration fund and £91,000 from Arts Council England.

In a report to the shadow executive in Williton on Monday evening (February 11), localities manager Chris Hall stated that the company would not necessarily need to draw down the entire loan should it be approved.

He said in his written report: “They are also in the final round of a Magnox bid for £250,000, which is hopefully to be confirmed in mid–February. They also anticipate a £500,000 bid to the Arts Council England Small Capital fund in April.

“There is the potential, therefore, that the funding gap could be as low as £889,000 to borrow in a couple of tranches from the council.

“The Onion Collective have stated that they will only draw down on this loan as a last resort, should they not be able to source grant funding for the total cost of the East Quay redevelopment project.”

In order to avoid losing its existing funding, the Onion Collective is required to begin construction by the autumn of 2019.

The construction process is expected to take 15 months, with the new facility being open to the public by the spring of 2021.

The council has claimed the regeneration project will bring 37 new jobs on the site, as well as 76 jobs during the construction and 166 indirect jobs as a result of increased tourism spend in west Somerset.

It also estimates that, over the course of a decade, it could earn up to £960,000 in business rates from the redevelopment (depending on who occupies the units) and around £230,000 in additional car parking revenue.

Mr Hall said the project would “deliver multi-layered social benefits to the tune of £3M per year (i.e. well-being, culture, aspiration, mental health)” and said the facility could have “a national profile, closely aligned with the interests of government.”

He added: “While Watchet is the one of the most deprived wards in the district, it also has some key strengths.

“It has a relatively young population by comparison to local towns and villages, and has an industrial legacy  and coastal location.

“Most importantly, Watchet has an incredible community with abundant social capital, meaning people in Watchet work together to solve their problems despite the town suffering terrible deprivation.

“The East Quay development provides many opportunities, not least of which being the chance to change the narrative of Watchet, transforming it into a destination that supports tourism, employment, skills development, and growth.”

The shadow executive voted to approve the loan in principle, which would be for up to £1.5M for a period of up to 30 years, repayable to the council with interest.

A final decision on the loan will be taken by the West Somerset full council in Williton on February 20.