Village politicians and tourist bosses are against plans to ditch some holiday accommodation in Port Erin.
The owners of the Cherry Orchard aparthotel want planning permission to change the use of 25 flats from ’tourist’ to ’residential’.
The management says the change is necessary to make the complex financially viable.
The complex is made up of residential and tourist flats. Last year the timeshare operation, restaurant, Chequers bar and function suites closed with the loss of 24 jobs.
Problems arose after 22 leaseholders of residential flats took the owners to a rent and rates tribunal in May 2014 over ’excessive’ charges.
In July 2017, the tribunal said leaseholders should be repaid £89,000 for overcharging between 2010 and 2013.
This led to the liquidation in November 2017 of Cherry Orchard Apartments Ltd and then of Cherry Orchard Management, which managed the residential flats.
Originally the plan was to turn 33 flats to residential use. The latest application is to change the use of 25 flats.
In its bid (18/00747/C), Cherry Orchard director Ian Gillings wrote that since the complex was built in 1979 many hotels had closed.
He said: ’No-one has been able to operate a large hotel successfully in the village in recent times.’
Several hotels on the village’s upper promenade - once the Port Erin’s tourism mainstay - have closed.
Mr Gillings wrote the Cherry Orchard had failed in 2017 with losses of £886,485 ’as a result of the general tourist malaise’ and following the ruling of the rent and rates tribunal, which set charges at those of a residential block while residents received the enhanced - more expensive - services of a tourist block.
The Cherry Orchard argued it was impossible to operate profitably as a tourist premises. Since September 2017, 33 self-catering tourist flats have been virtually empty and tourist registration was cancelled.
The Cherry Orchard’s owners say there is no possibility of returning the flats’ use to the tourist trade and the complex’s future remains ’delicately balanced’.
Urgent
The application addresses ’the urgent insolvency and other issues that threaten the continued occupation of this building’.
Leaseholders met the Cherry Orchard’s owners and all but one voted to support the plan. In a statement they said: ’The only thing stopping a convivial resolution would be planning permission not being granted.’
Civil servants at the planning department asked colleagues responsible for tourism what they thought about the proposal.
The area plan for the south states that any proposal for redevlopment or re-use of the Cherry Orchard will not be permitted unless it can be demonstrated that the hotel use is no longer commercially viable.
The plan for the south names a number of hotels identified as important to tourism: Castletown Golf Links, the Sefton Express Airport Hotel, the Cherry Orchard and the Falcon’s Nest Hotel in Port Erin.
Head of tourism Angela Byrne said: ’Our records indicate The Cherry Orchard accounts for approximately 16% of the self-catering bed spaces in Port Erin and the south (102 as a percentage of 640).’
Viability
She said the application lacked any evidence about the economic viability of the Cherry Orchard and how the business had been marketed.
’The department is concerned at the loss of the tourism bed space in Port Erin and if the application is successful, the loss of tourism designation for the land going forward,’ she said.
’If more evidence is provided in respect of the company’s efforts to market the business, or in respect of its viability, we respectfully request that this be provided for our further consideration.’
After more information was provided by the Cherry Orchard, tourism bosses retained their original position.
Port Erin Commissioners maintained their opposition due to insufficient parking and the loss of ’valuable’ holiday accommodation.
At a recent meeting Gerry Callister said: ’If they cannot get tourists there’s no way round it.’ Marc Morley said its use should remain for tourism. Government planners are yet to make a decision.