THE project to turn Minehead's Old Hospital into a community hub took a dramatic twist this week as negotiations between Minehead Development Trust and the building's owners broke down.

Bill Howard, one of the owners Minehead Old Town Hall Investments Ltd (MOTHI) said the two sides could not agree on the financial model for the community hub.

"The (insurmountable) problem we faced was that, after many months gestation, on receiving MDT's proposals, it was apparent the model being developed relied on transforming what should have been an investment into a financial liability - not just for ourselves but for our children and their children for decades," Mr Howard said.

Mr Howard wanted to assure both MDT and the community that the owners remain committed to delivering the community hub and preserve the beautiful building for residents to enjoy.

"We are, just like MDT, very disappointed that all the dreams and hard work and commitment we have all ploughed into the scheme have failed to progress into the type of joint community scheme we had hoped for," Mr Howard said.

"The decision to break off dealings with MDT was an incredibly difficult one to make, especially knowing how much they have been committed to the site for so many years and the huge amount of public support they, very deservedly, enjoy."

Ray Tew of Minehead Development Trust described the news as 'very disappointing' given the amount of hard work the trust had put into the project.

"Minehead Development Trust has worked for nine years, with overwhelming community support, to secure the iconic Old Hospital’s future as a community hub," Mr Tew said.

"The proposals we put to MOTHI for negotiation aimed to deliver a sustainable project and provide the community with security of tenure.

"To this end, we have generated a long-term business plan with potential to attract grant funding and ?nancial investment from local, regional and national sources.

"After considerable effort and discussion over the last year, we regret to announce that MDT has not succeeded in reaching a viable agreement with the new owners, Minehead Old Town Hall Investments Ltd (MOTHI)."

Respecting the community’s enthusiasm for the project, MDT remains prepared to work with any organisation aiming to achieve this goal, if requested.

The MDT Board want to assure all the individuals who generously donated funding for the Old Hospital project through the pledges scheme that they will be fully reimbursed in the near future.

Mayor of Minehead Jean Parbrook said Minehead Town Council had a great deal of respect for the hard work and dedication of the trust in trying to save the Old Hospital as a community hub for the town.

"It was very brave to undertake such a massive project and Minehead Town Council appreciate that Minehead Development Trust must be very disappointed at this setback," Mrs Parbrook said.

"Minehead Town Council has been rigorous in following the correct procedures to ensure the best use of community gain funding despite being pilloried for doing so.

"However, we hope that the owner‘s enthusiasm for the project remains and that a way forward can be found for this beautiful building."

Cllr Karen Mills, West Somerset Council’s Lead member for economic growth and regeneration, added: “This is sad news as I have seen at first hand the commitment, hard work and enthusiasm that MDT has put into this project.

“However, I can fully appreciate that the business case has to stack up for the group to continue with this particular project."

Owner Bill Howard said that although 'business' discussions between MDT and MOTHI had been terminated, the owners were keen to remain on friendly terms and supportive of each other, and 'once the dust has settled and a more achievable way forward begins to gel, we can find some way of working together again'.