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Islanders are being urged to use the Cineworld cinema complex on the Waterfront – or risk losing it – after part of its rental arrears were waived in a deal that could secure its future for up to nine years.
The overall lease has been extended to a new expiry date of June 2032, and the JDC – which acquired the Waterfront Leisure Complex in November 2018 – has waived some of the company's rent arrears debt.
The changes, which are dependent on the JDC gaining planning permission for its major scheme to transform the area, have secured the cinema's multiplex operation on the site until at least 2027.
After this, a break clause could be exercised if there are not enough admissions to keep the cinema financially viable, JDC warned.
Pictured: Islanders are being urged by the JDC to use the cinema or risk losing it.
In the wake of the covid pandemic, the organisation – including the UK cinema arm which Jersey is part of – filed for chapter 11 bankruptcy in the United States.
Revenues from the local cinema were marginal, with usage reducing from 280,000 visits in 2019 to just 180,000 visits in 2022.
The company last year appealed against an order to pay £1 million in unpaid rent and insurance costs incurred while the venue was shut during the pandemic.
However, the JDC has said it agreed to waive some of the company's rent arrears debt "in return for a longer-term commitment". JDC has not shared the total value of the rent arrears that have been written off.
Pictured: Jersey Development Company Chief Executive Lee Henry.
The States-owned entity's Chief Executive, Lee Henry, said: "We are pleased to have reached agreement with Cineworld and to retain the island's cinema multiplex operation for the foreseeable future.
"The fact that the majority of objections to our future plans for the Waterfront referenced the closure of the cinema highlights the importance of the facility to islanders. It was incumbent upon us as a Government-owned company to facilitate the island's community and not simply maximise profit."
If occupancy drops below a rolling three-year annual average of 180,000 visits after 2027, Cineworld is able to exit the arrangement subject to a six-month notice period.
Cineworld's Property Director Kevin Frost added: "We are grateful to the Jersey Development Company for working with us on the commercial terms to have found a way, together, to keep the local cinema multiplex open and trading for at least the next four years, and hopefully another five after that."
A planning inquiry into the JDC's proposals to overhaul the Waterfront area with the creation of close to 1,000 homes was held in May, and a decision is yet to be handed down.
Those plans included commercial and retail units, and £150m-worth of 'public realm' including 500 trees, streets, squares, gardens and what was originally described as an "arthouse cinema". JDC previously said that this would be an "addition to the island's art and culture offerings" and that there was "no intention of replacing the Waterfront cinema until a new location for a multiplex cinema is found". JDC has not stated whether the arthouse cinema concept will be pursued in light of the new lease arrangement with Cineworld.
A report containing recommendations following the inquiry has since been prepared by independent Planning Inspector Philip Staddon and passed to a panel of politicians who will make the final decision: Environment Minister Jonathan Renouf, Deputy Hilary Jeune and Constable Philip Le Sueur.
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