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A district council that gave contractors £500K to finish the completion of a Mercure Hotel has said the loan will be re-paid with interest.

The new hotel in Eastover, Bridgwater will feature 119-bedrooms across four floors complete with leisure facilities and a gym.

The venue will feature rooms with floor-to-ceiling windows while some luxury rooms will boast balconies with views across the town to the countryside beyond.

A new Marco Pierre White Steakhouse restaurant will also be incorporated into the hotel.

The guest house, originally planned to open in 2017 but now aims to open around Bridgwater Carnival.

An official for Sedgemoor District Council previously said the commercial loan of £500,000 was given to contractors to aid the completion of the Mercure Hotel and make it larger than originally planned.

The South West Local Enterprise Partnership had already contributed a £4.5M loan to the project from the Growing Places Fund.

The news has sparked a strong reaction in Bridgwater in a time when another local authority, Somerset County Council is aiming to cut £15M in services by 2020.

A council spokeswoman said the half-a-million pound loan was necessary as the Mercure Hotel has been highlighted as a key part of the town centre's future and is "the largest investment into the town centre in recent years".

What is a commercial loan? A commercial loan is money lent to an organisation with a payback period. Like any other loan from any organisation, there is interest payable upon the loan.

The commercial loan was tested with due diligence tests before being approved by councillors. The loan will be paid back to Sedgemoor District Council with interest.

The council acknowledges the project "met a number of challenges in the construction phase" which affected costs and the planned opening date.

Construction workers discovered a large amount of concealed asbestos fibre, ancient human remains located under the building and oil and paint contamination within the ground.

Alongside this, staff also had to use certain construction methods in compliant with boundary issues and struggling to get the compliant external cladding material due to increased demand because of Grenfell Tower fire.

In light of Somerset County Council's financial issues, Sedgemoor District Council has been described to be in a "sound financial position" and has general reserves of £6.3m.

Sedgemoor District Council's statement in full

(Image: Google Maps)

A spokeswoman for the council said: "This is a loan that Sedgemoor District Council has agreed to provide at commercial rates.

"Another was Wembdon Village Hall committee, which helped them to finish off the building of the new hall/venue at Wembon.

"The Mercure Hotel is a flagship regeneration project for the vitality and viability of the town centre and is the largest investment into the town centre in recent years.

"This importance is reflected in a loan from the Local Enterprise Partnership totalling £4.5 million.

"Market information suggests that, once opened, the site would be worth well in excess of any loan amount.

"The site had been in a derelict state for many years and its development is already seeing positive knock-on economic and regeneration effects and will offer employment to over 50 people.

"There is potential for significant positive economic benefits for the wider town centre and it will be the only four star hotel in Bridgwater.

"As far back as 2007, The Bridgwater Vision identified that hotel provision in the town needs to be improved, including both hotel chains and independent quality hotels.

(Image: Mercure Hotel)

"This is one of the first steps in that provision. The hotel will provide 119 bedrooms, as a result of approved changes to the original planning permission which was for 80 bedrooms.

"Whilst the hotel is nearly complete, the scheme met a number of challenges in the construction phase, which had a knock-on effect on costs and the planned opening date.

"These included a large amount of concealed asbestos fibre, oil and paint contamination within the ground, restrictions on construction methods due to neighbour boundary issues, ancient human remains located under the building and most recently, difficulties in getting the compliant external cladding material due to increased demand because of Grenfell Tower.

"Councillors debated what would happen if the loan were not to be made and decided that as well as generating income, the council would not want to see any more delays in the opening of the hotel nor not see it open in the very near future."

What do you think of the news? Do you think Mercure Hotel will improve the town? Do you have a Bridgwater or West Somerset story you would like to share or for me to investigate? Get in touch: michael.taylor@reachplc.com or call 01935 709742.

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