Scarborough Borough Council is to take legal action in an £800,000 dispute over a local water park.
A spokesman said: "We are taking legal action to resolve a contractual issue between the council, Benchmark and Abbey Commercial Investments. We will not comment further while the case progresses.”
The council confirmed the accuracy of a report in the Yorkshire Post, which said it was owed £800,000 by the developer of the water park in unpaid rent and that the council believe there was a long-term arrangement in place to ensure the costs of the waterpark were repaid. The council said it retained the freehold interest in the site against any chance of default.
In a statement quoted in the Yorkshire Post, Benchmark said: “The proceedings issued by SBC relate to the recovery of rent due by Benchmark during Covid from Abbey Commercial Investments Limited, Benchmark’s parent company and guarantor under the lease.
“Benchmark and Abbey have contested the claim as Benchmark was assured by the council that all rent due during Covid would be deferred, to be recovered in full over future years.
“In reliance of these assurances, Benchmark has financially supported the struggling water park to see it through the crisis and even invested more money in improvements to ensure a full re-opening was possible in May this year.
“The council has repaid this by issuing costly proceedings in court for immediate payment of all the rents due in full.”