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A council is considering handing out a £1.5m financial lifeline to help a management firm continue running vital leisure services.
This week, Thanet District Council's cabinet members will review a funding support strategy for Your Leisure - a "not-for-profit" trust that manages numerous Thanet leisure facilities, and has been "profoundly" impacted by the pandemic.
If approved, the proposed measures would see TDC grant a loan to Your Leisure of between £700k and £1.5m.
The firm manages many of the district's leisure and entertainment venues - including Margate Winter Gardens and Theatre Royal Margate, along with Northdown House, Hartsdown Leisure Centre and Ramsgate Leisure Centre.
But it has suffered a "significant financial impact" following government coronavirus restrictions, which have included the closure of gyms.
On Thursday, TDC cabinet members will review a raft of proposals that aim to financially support the trust and ensure it can continue to operate.
Alongside the sizeable loan, cabinet members will consider whether to provide additional funding to the Winter Gardens, to help make sure it can reopen and operate from October 2021.
The funding would be used to help replace boilers, which it is thought will cost in the region of £230,000.
Other proposals including exploring with Your Leisure the potential to "refinance, through council prudential borrowing, their existing loans in respect of Ramsgate and Hartsdown Leisure Centres", and for TDC to extend its current agreement for Your Leisure to manage the Theatre Royal until April 28, 2022.
Leader of Thanet District Council, Cllr Rick Everitt, said: “As the report rightly states, the financial impact of Covid-19 on the leisure and entertainment industry has been profound.
"If the council doesn’t act now we could be faced with the prospect of many local services having to cease operation. This could have far reaching long-term effects given the health inequalities we see within our district.
“There would be significant financial implications for the council, whether we took services in-house, were able to identify an alternative provider or allowed them to cease altogether. There is no risk-free option here.
“Whilst we welcome the recent Government financial support to the leisure sector, it doesn’t go nearly far enough and only applies from December 2, 2020.
"This doesn’t address many months of financial loss before that, given the first national restrictions were imposed in March. At this point all of Your Leisure’s facilities and services were required to close and consequently their customer income ceased.
"Whilst some services have reopened, customer confidence remains low and there is significant uncertainty around when the latest national restrictions will lift.
“The council has worked closely with Your Leisure throughout the pandemic to understand the challenges they have been facing and has confidence in the management’s approach.
“Supporting a Thanet business, which employs many local people and in turn protects the health and wellbeing of so many of our residents, who really value the services provided, has to be a priority and this will be considered when the cabinet meets on Thursday.”
