The search to find tenants for Harrogate‘s former Tourist Information Centre has begun.

‘To Let’ signs were put up on Friday outside the building on Crescent Road, which is part of the Victorian Royal Baths complex.

The rental asking price is £40,000 a year, according to the website of Align Chartered Surveyors, which is marketing the 2,394 square foot property on behalf of North Yorkshire Council.

The website also says the property has a rateable value of £23,500 and a £24,300 service charge, which includes maintenance, waste collection and cleaning costs.

It says:

“The site is one of the most famous attractions of the affluent town, a town whereby domestic visitors alone provide over £640m of investment each year.

“The building is grade two listed comprising Yorkshire stone masonry elevations under multi-pitch and gabled roof. The windows are double glazed with timber framing.”

The Stray Ferret reported in February the council had decided to relocate the Tourist Information Centre in the nearby Royal Pump Room Museum.

Harrogate’s new tourist information service consists of leaflets.

It said in a report the move would enable it to save costs and generate income from the Royal Baths, which has been dogged by low investment returns since the council paid £9.5 million for it in 2018.

The report said the number of visitors to the Tourist Information Centre fell from 135,000 pre-covid in 2019 to 68,000 last year, mainly due to people seeking information online.

It added it was “important to maintain access to the service to support tourism within the area and to provide services for those who are unable or prefer not to use digital services”.

The report said relocation would “improve the tourist information service” and have “minimal” impact on customers.

However, the service has been downgraded to just a desk with leaflets of mainly council services within the Royal Pump Room Museum, which has prompted concern among local businesses.

It means three of the five commercial unites within the Royal Baths are vacant.

Two are occupied by the JD Wetherspoon pub and the Royal Baths Chinese Restaurant but the former Viper Rooms nightclub and Potting Shed bar remain empty, even though the council said in February it had accepted an offer on the Viper Rooms.

Read more:

• What are the options for Harrogate Convention Centre?
• Local business raises concern about new Harrogate Tourist Information Centre

The long-term vacancy of two prime retail units in Harrogate’s Royal Baths has cost the taxpayer almost £1 million in lost rent and service charges, the Stray Ferret can reveal.

North Yorkshire County Council paid £9.5 million for the Grade II listed building in 2018. A current council report has valued it at £7 million and forecasts it to generate an investment return of just 1.64%.

But in addition to the £2.5 million decline in property value, the long-term vacancy of both buildings is haemorrhaging lost rental income each month.

A year ago today (December 9, 2022) the council evicted the owners of the Viper Rooms nightclub — one of four commercial units it lets in the Royal Baths.

The venue has stood empty since, despite repeated claims by the council of “significant interest”.

The former Potting Shed bar, which along with the JD Wetherspoon pub and Royal Baths Chinese Restaurant make up the other commercial units, has been empty since the council acquired the historic complex five years ago.

The Stray Ferret asked North Yorkshire Council, which succeeded North Yorkshire County Council in April this year, about the cost of the ongoing vacancies.

A council statement said rent for the Viper Rooms premises “would have been in the region of £90,000 since December last year”.

It added maintenance for the building is covered by a service charge which is approximately £75,000.

The council added no business rates are payable due to an exemption for the premises as a listed asset.

As for the Potting Shed space, the council said the original rent was £125,000 a year when the county council acquired the vacant unit in 2018. That figure represents a loss of £625,000 over five years.

The vacant former Potting Shed unit.

It did not give a figure for the loss of service charge income at the Potting Shed but said no business rates were payable on either premises due to an exemption for them being a listed asset.

The council said “no agent’s fees have been paid at this time” to Savils, which has been marketing the Viper Rooms, adding any fee “will be made when the unit has been let”.

Asked why it was taking so long to find a Viper Rooms tenant, despite the apparent interest, the council said:

“The leisure market continues to be highly variable. Savills has conducted a significant number of viewings, and we do now have offers for both vacant units.

“An offer for the Viper Rooms unit has been accepted while the offer for the Potting Shed is due to be considered shortly.

“The situation of having vacant units is by no means unique and is a widespread issue nationally following the impact of the covid pandemic and the cost of living situation.

“Harrogate’s Royal Baths do, however, cover their costs and the council has not had to use funds from alternative budgets to support the asset.”

Council urged to “get their act together”

Former Conservative councillor Richard Musgrave branded the Royal Baths an “under-performing trophy asset” in 2021 because of the sum paid and returns generated.

The continued loss of rental income since, the depreciation of the value of the asset and its low investment returns has again raised questions about the council’s business acumen.

The Royal Baths forecasted return of 1.64% is by far the lowest in the council’s portfolio.

Cllr Stuart Parsons, leader of the Independent group on Conservative-controlled North Yorkshire Council, said the situation was “extremely concerning”. He said:

“The council really ought to get their act together and get it sorted immediately.

“A 1.64% return on investment is very low. They could have put the money in the bank and got just under 5%.”

Cllr Parsons said the newly formed council was still going through its investment portfolio to decide which assets to keep.

The Royal Baths complex

Tom Gordon, the Liberal Democrat candidate for Harrogate and Knaresborough at the next general election, said:

“North Yorkshire Council’s approach to business and investment in Harrogate is disappointing, and we deserve better.

“The continued cuts to local government from the Conservative government have left local authorities scrambling to buy up investment properties as new revenue streams. Often they do not have the skills of expertise to make a success of such investments, and we can see how that plays out first hand with the Royal Baths as one example.

“Their approach has been shortsighted, resulted in the loss of local businesses, and decreased the value of the assets they purchased. Someone should be accountable for this decision.”

Read more:

• Harrogate’s Royal Baths: the council’s under-performing ‘trophy investment’
• Harrogate nightclub Viper Rooms closes suddenly
• Viper Rooms owner says Harrogate landlords need to ‘get real’ with rent

Asked to respond to claims that it lacks the commercial acumen to run businesses, the council said:

“North Yorkshire Council has a wide range of skills among its own staff, but also recognises that external support is necessary for assets that are more complex. A number of external professionals assist the council in managing this asset is the best interests of local residents and taxpayers.”

Paul Kinsey, who owned the Viper Rooms, has been locked in protracted negotiations with the council over the fixtures and fittings, declined to comment.

The man who owned Harrogate’s last nightclub has spoken of his frustration at trying to operate in the town.

It is now six months since Viper Rooms was re-possessed by landlord North Yorkshire County Council.

It has remained empty since, despite repeated claims by the council of “significant interest from potential tenants”.

Viper Rooms owner Paul Kinsey said he had been in protracted negotiations over a new lease with the council before it re-possessed the building.

Mr Kinsey added he still owned the fixtures and fittings and had continued to negotiate with the council about re-occupying the site.

But a deal has not materialised and his frustration has prompted him to speak out.

The Viper Rooms unit was part of the grade two listed Royal Baths, which the council bought for £9 million in 2018. The baths also includes the former Potting Shed unit, which has been vacant for five years.

Still vacant: the former Potting Shed and Viper Rooms — both part of the Royal Baths.

Their ongoing closure led Mr Kinsey to claim councillors “haven’t got the commercial experience or knowledge” to run large commercial assets and they were making unrealistic demands on tenants.

He said he spent £370,000 refurbishing the club pre-covid and the council was now requesting £150,000 a year on rent and service charge even though the landscape had changed post-pandemic. He said:

“If they think they can get £150,000, good luck to them. It’s a difficult market. The council grossly overpaid for the Royal Baths without doing proper due diligence. It was a trophy asset.

“I can understand them wanting to get a good deal because of that but they have to get real.”

Read more:

• Harrogate nightclub Viper Rooms closes suddenly
• New tenants soon for Harrogate’s Viper Rooms and nearby bar?

‘Crippling overheads’ on Parliament Street

Mr Kinsey, who lives near Wetherby, said he still wanted to have a venue in Harrogate and had his eye on one site.

But he questioned the appeal of the town to leisure operators, adding the main reason he was so keen to return to the Royal Baths was because he owned the fixtures and fittings and had spent so much on refurbishing it pre-covid.

He said many commercial landlords over-estimated the value of Harrogate and pointed to the number of failed ventures on Parliament Street as evidence of “crippling overheads”.

“I don’t think Harrogate is on many people’s target list. You get more bang for your bucks in other places.

“People who don’t know the area believe the streets are paved with gold. There is a good wealth profile but they spend elsewhere — Leeds, London or abroad.

“Look at how many businesses haven’t been able to make it work on Parliament Street. These are good operators, not cowboys, but even they couldn’t make it work.”

The Stray Ferret asked North Yorkshire Council, which succeeded North Yorkshire County Council on April 1, if it had a response to Mr Kinsey’s claims but it did not issue one.

The Viper Rooms site is being advertised

Asked for an update on the Viper Rooms, which is now being advertised by agents Savills, and the Potting Shed, it said it had nothing to add to its last statement two months ago, when Gary Fielding, the council’s corporate director for strategic resources, said:

“A unit which did house the Viper Rooms is continuing to attract significant interest, and an agent has been appointed to co-ordinate discussions with potential tenants.

“A lease has been signed for the final unit and a dialogue with the tenant is continuing to establish when the new venture will be launched.”

The council’s £9 million spending on the Royal Baths also included the JD Wetherspoon pub and the Royal Baths Chinese Restaurant.