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May 2023

Last Updated: 26/05/2023

Business

Viper Rooms owner says Harrogate landlords need to 'get real' with rent

by John Plummer

| 27 May, 2023

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.

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."

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.

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.

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Viper Rooms owner says Harrogate landlords need to 'get real' with rent

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'Crippling overheads' on Parliament Street