Martello Developments’ Bridgepoint arts complex on Rock Channel has been thrown into doubt by a report from property consultants Bespoke Property Experts.
Their report, submitted to Rother District Council in late January and prior to the current Covid-19 lock down, claims the original analysis on its financial viability by housing consultants Altair was flawed.
Martello Developments had submitted a planning application to convert the existing redundant Bournes warehouse into a new multi-purpose arts centre which will include workshops, gallery space, mixed use art space and rehearsal space with three live/work artist apartments on the first floor.
The application includes a request to demolish an existing riverside building and replace it with a new two storey riverside restaurant with a holiday let flat on the first floor, and the construction of five new riverside houses and three new mews houses, which would join the five houses that have already been completed.
The new development also includes the creation of a new public park and an upgrade to the riverside walkway along the River Brede as outlined in a previous story in Rye News.
Sale price substantially reduced
Martello Developments have already completed five houses but, as the property experts point out, four have yet to be sold, and the sale price has been substantially reduced in recent months. It was by using the profits from the sale of these houses that was going to help pay for the arts complex.
Bespoke Property Experts said, "In their appraisal, (housing consultants) Altair have not allowed for any purchaser’s costs for the site, nor for any sales and marketing costs of the commercial properties. They also have excluded community infrastructure levy (CIL) contributions from the costs. If these adjustments were made their own appraisal would show the scheme to be unviable."
The CIL contribution refers to a financial contribution a developer must pay to the local authorities who will then use the funds to pay for community projects, for example - amenities like children’s play parks or local street and transport improvements.
The report goes on to point out that because the proposed artists’ live/work accommodation will be let rent free, "once this is taken into account the scheme is completely unviable". But the experts' main concern is the delay in selling the current houses to enable the construction of the gallery and arts centre.
In their report Bespoke Property Experts claim Altair had calculated the average sale price for the five riverfront houses at over £1.5 million each. The houses are current being sold by Rye estate agents Phillips & Stubbs "from £850,000."
In their conclusion, Bespoke Property Experts say, even with "all the properties (being) sold on the open market the scheme does not produce any surplus...to provide for any affordable housing or s106 contributions (payments to reduce the impact of planning proposals) in addition to the payment of a CIL contribution."
Sotheby’s litigation - a correction and apology
In a further twist to the Bridgepoint scheme’s financial viability Rye News had reported that the Kowitz family finances, the family behind Martello Developments, have been hit by a $6.6 million compensation payment to Sotheby’s following litigation over an alleged fake painting attributed to Dutch master Frans Hals.
[Editor's note: A letter has now been received from Nigel Rowley, of Mackrell Solicitors, Savoy Hill, London, on behalf of David and Sarah Kowitz as set out below. We stand corrected and apologise for the mistake. Charles Harkness, Editor]
"Rye News published an article this morning [April 24] headed "Arts Complex In Doubt" - written by your correspondent Kevin McCarthy.
Under the sub-heading "Sotheby's litigation" the article refers to a legal case between Sotheby's, an art dealer called Mark Weiss, and a corporate entity called Fairlight Art Ventures LLP [which you incorrectly title].
A quantum leap is then made to suggest, quite wrongly, that an adverse first instance judgment in that case, in itself entirely unconnected to your article, would in some way "hit......the Kowitz family finances"
I will assume at present that your correspondent's comments are simply down to a lack of understanding of the corporate world . To suggest that there is any legal connection between a corporate LLP and an individual makes a mockery of hundreds of years of well-established corporate law.
To put it simply for you, the finances of Fairlight Art Ventures LLP and the "Kowitz family finances" are entirely unconnected.
To suggest that my client's family finances are adversely affected by a judgment against a corporate body risks substantial damage to my clients.
I must insist, please, that you publish an apology and correction...
The painting was originally sold in 2011 for $11 million by art dealer Mark Weiss and the Kowitz's art vehicle, Fairlight Art Ventures. In April 2019 a London judge ordered Mark Weiss to pay Sotheby's $4.2 million and followed up in December 2019 by ordering that the remainder must be paid by Fairlight Art Ventures.
Martello’s "landbank"
In recent years Martello Developments have been buying up large tracts of land in Rye and along Rye Harbour Road.
In addition to the main Rock Channel development they have also bought the Grist Mill site; The Cabin overlooking the River Brede; as well as the large field off Rye Harbour Road, or the "strategic gap" as it is referred to in Rye’s Neighbourhood Plan. This site is on the opposite side of the River Brede from Rock Channel.
More recently, they have bought a large swathe of land and buildings overlooking the River Brede at the eastern end of Rock Channel under a new company name, Martello Marine.
The fact that they own land either side of the River Brede has led some to ask if they are the "developers", recently mentioned in a Natural England report on the Coast Path, who were considering building a pedestrian and cycle bridge over the river. The report had said such a link would allow walkers to avoid the dangerous A259 and Rye Harbour Road junction - which is the principal local barrier to a continuous Coast Path around the south-east of England.
The assembling of such a substantial landbank begs the question, do Martello Developments have a "master plan" for the town? If so, it is only being revealed piecemeal in planning applications.
The result is that Rye’s residents may have limited influence over how this shapes up and on setting the priorities for investing in community infrastructure or affordable housing.
Charitable giving
The Kowitz family also run two charitable foundations which focus on giving funds to support the arts: the Fairlight Arts Trust and Kowitz Family Foundation. Both of them have generously donated substantial amounts to the arts in Rye and Hastings. In recent years the Kowitz family’s foundations have supported the Rye Arts Festival, Rye International Jazz and Blues Festival, and the Rye Creative Centre Theatre.
Rye News has asked Martello Developments to comment on the Bespoke Property Experts' report but, at the time of publication, has yet to receive a response.
