SOBO Beach has launched a legal challenge against BCP Council over the decision made by the authority about the process to appoint an operator for the Southbourne Promenade site for 20 years.
In an email seen by the Local Democracy Reporting Service, the council’s law and governance chief advised councillors that the contract award had been suspended until legal proceedings concluded.
Councillors were also told the council could not hold a meeting to discuss the matter further or include it on the agenda of another public meeting.
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It is understood the challenge has been filed with the High Court, and that the cost to the council of defending its decision is not yet known.
The council put the Southbourne site out to tender earlier this year, with SOBO Beach’s existing lease due to expire on October 31.
A cabinet report said the exercise generated five expressions of interest and three operators were shortlisted for interview and presentation.
The report said the proposed operator’s submission offered the highest guaranteed and projected rental income, alongside hospitality experience and design proposals.
On October 8, SOBO Beach announced it was not the preferred operator for the site.
It was later revealed that Seventa Events was the company selected for the long-term lease of the site.
At a full council meeting on October 13, councillors considered a petition signed by more than 10,000 residents opposing the award of the 20-year lease and calling for a review of the process.
The meeting voted to approve the preferred operator by 32 votes to 17, with 11 abstentions.
Councillors also approved an amendment proposed by council leader Millie Earl, offering the existing operator an 11-month fixed-term lease from November 1 until September 30, 2027.
Cllr Earl said she would refer the procurement to the Public Procurement Review Service and resolved to refer it to the council’s Audit and Governance Committee for independent review.
Some Councillors felt that this amendment was doing exactly what the council had said was ‘impossible’ as the authority had previously said, “residents were told national law left the council no choice, that the lease couldn’t be extended.”
Since the decision on October 13, residents, campaigners, and councillors have called for the contract to be paused so the tender process can be independently reviewed.
An earlier request for an extraordinary council meeting was rejected by the council chair, who said further debate would not be appropriate during the formal procurement standstill period.
In October, SOBO Beach took the first steps towards legal action over the tender process and said they were exploring legal options available to them.
BCP Council has confirmed that they have received papers for formal legal proceedings from SoBo Beach.
A BCP Council spokesperson said: “We have been informed that on the evening of Tuesday, November 10 solicitors acting for Macemade Ltd have filed legal proceedings in relation to the contract award process relating to the Southbourne beach cafe.
“In light of those proceedings, the contract award will be paused while the court process is ongoing and until the matter has been determined.
“The council remains confident that the procurement process was conducted appropriately and in accordance with the relevant legal and regulatory requirements.
“As the matter is now subject to legal proceedings, it would not be appropriate to comment further at this stage.”
Richard Slater, operations manager SOBO Beach said: "SOBO Beach (Macemade Limited) has issued High Court proceedings against BCP Council challenging the award of the contract in respect of the hospitality and recreation hub at Southbourne Beach. SOBO Beach believe that the procurement of this contract was legally flawed and will be requesting the High Court to uphold its challenge.
Bournemouth East MP, Tom Hayes said: “I welcome the suspension of the contract award. It gives everyone some breathing space to review the procurement process, understand where things stand, and consider what should happen next. This is a positive, constructive step forward for everyone involved.
“Everyone should have confidence that the correct processes have been followed. This is a significant long-term commitment for Southbourne, and residents deserve every confidence that the procurement process has been conducted properly. I’m continuing to seek answers to questions about this process.”
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