A multi-million-pound funding decision to transform Scarborough's boarded-up Brunswick Centre into a multiplex cinema and leisure hub will take place next week.
A £7 million funding package will face a final vote next week to kickstart the transformation of Scarborough's boarded-up Brunswick Centre.
Regional leaders will consider the financial support during a Cabinet meeting at Scarborough Town Hall on Friday, 6 November.
The proposed grant will bridge a commercial viability gap as part of an £18.5 million public investment package for private developer Scarborough Group International.
The vacant shopping centre closed its doors in September 2025.
New plans will transform the site into a six-screen multiplex cinema, major retail stores, and family leisure facilities.
The redevelopment will create 414 direct permanent jobs and generate an estimated £10 million for the local economy each year.
An additional 112 jobs will support the construction phase.
David Skaith, Mayor of York and North Yorkshire, confirmed the decision date.
He said:
"High streets and town centres need our backing, not quick fixes. Redeveloping the Brunswick Centre is set to be the catalyst for a wider revival of the town.
"We will take this plan to Cabinet next week as we take the next major step in our ambitious journey for Scarborough with our first Mayoral Development Zone."
The wider £18.5 million package includes an £8 million concessionary loan from North Yorkshire Council and £3.5 million from the Pride in Place initiative.
Strict funding phases will manage financial risk across the project.
An initial £3 million pre-construction tranche will fund design work, initial demolition, and a new planning application.
The three public partners will split this initial cost equally.
North Yorkshire Council approved its share of the funding package in late October.
Nic Harne, Corporate Director for Community Development, explained the timeline.
He said:
"We understand that the combined authority be asked to make a decision on the 6th of November this year to agree the tranche one grant funding of £1 million and also to improve in principle the ring fencing of up to £6 million to support tranche two.
"The structure of the grant two funding will depend on the outcomes of the first phase of the project, for example, review review of tranche one, the business case, completion of due diligence, legal checks, and further report to the combined authority."
The leisure hub project will target anti-social behaviour by increasing evening footfall and natural surveillance.
The scheme forms part of Scarborough's Mayoral Development Zone.
The town joins York and Selby as one of three targeted development zones established across the region.
Councillor Mark Crane, North Yorkshire Council's Deputy Leader, highlighted the urgency of the scheme.
He said:
"This is, I think, an opportunity for Scarborough, which, if we don't take this opportunity now, it will be a decade or more before any similar opportunity arises.
"At the moment it is shut down and boarded up. This report is asking that we initially give £1 million of council money and this will be match funded by both the mayor and the neighbourhood board, and I was at the neighbourhood board on Friday and it was voted through, and there was a lot of strong support for the scheme.
"And the scheme will be to turn this building into something that will centre Scarborough and cause people I believe to spend more time and money in Scarborough when they're travelling there, and give the opportunity for people who live in Scarborough to visit a first class cinema and have offer of other things to do and places to eat as well as significant shopping offer.
"SGI bought this building some time ago, that's currently boarded up, but this scheme would allow us working with the neighbourhood board and the combined authority to bring money forward, initially £1 million from each of the three for the pre-construction phase, but if that is successful, and I sincerely hope that it is, then the further moneys that are noted in this report.
"But this is a real unique opportunity for Scarborough. I've said before and I've said publicly, that I believe this will cause people to spend more time and money in Scarborough and making it an even better place to go and visit, and that will be year round of course as well because of the cinema etc offers."
Cabinet members will also consider a recommended £1 million grant for public realm and active travel improvements.
The money will fund upgrades along Westborough and Vernon Road to improve pedestrian and cycle connectivity between Scarborough Railway Station and the new town centre development.
Scarborough Councillor Heather Philips welcomed the development as a much-needed boost for the evening economy.
She said:
"I'm very encouraged. We've had 25 years of various projects discussing what we need in Scarborough and we always come up with a central draw, because at the moment, Scarborough is not a fun safe place in the evening. That's what it feels like.
"Most of the people that would be coming to the cinema will be local people. If you want to go to Wetherspoons, that's fine. But it's not going to bring the the families that we need in to Scarborough."
Construction workers will complete the transformation in an estimated 15 months, provided all funding conditions are met and planning permission is granted.


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