The Westlands entertainment venue in Yeovil could close its doors if Leonardo does not win a long-delayed government contract to build new helicopters.
Leonardo owns the freehold of the site on Westbourne Close, which has served as the town's flagship cultural venue during the ongoing closure of the Octagon Theatre (which is subject to a £15m regeneration project).
The Ministry of Defence (MoD) has repeatedly delayed a decision on a £1bn contract to protect new medium helicopters to meet the UK's future defence needs - despite Leonardo being the only remaining bidder.
Both Somerset Council officers and Yeovil MP Adam Dance have now confirmed that Westlands could be forced to close forever if Leonardo fails to gain the contract and closes its Yeovil operations.
Councillor Andy Kendall (whose Yeovil Central division borders the Leonardo factory) raised the issue when the council's communities scrutiny committee met in Taunton on February 5.
He said: "The thing that concerns me is what's in the news at the moment about the helicopter contract.
"I'm not saying it's a fact, but the rumours are that Leonardo may terminate the lease [on Westlands]. Are we ready for that?"
Chris Hall, the council’s executive director for community, place and economy, responded: "The freehold of Westlands is owned by Leonardo and we have a lease, which Yeovil Town Council operates.
"There are too many unknowns around that contract to be able to determine what might or might not happen to the venue.
"Westlands is very successful, as you will know - it's a very modern facility which is doing very well for the town council.
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"I'm sure that we and the town council would be negotiating with Leonardo to ensure that this provision is retained, but in terms of the wider contexts, we have nothing more than what is already in the public domain."
Yeovil MP Adam Dance confirmed that Westlands' future was in jeopardy during a Westminster Hall debate on Wednesday morning (February 11).
He said: "Leonardo has been clear that if the programme does not go ahead, it will need to seriously consider the future of the Yeovil site.
"This would lead to a huge loss of investment in my community - starting with £1.2m to Yeovil college, which does fantastic work training the skilled people we need in our defence sector - and the loss of the Westlands entertainment centre.
"It will be the death of my town. Local businesses have told me that they will shut overnight if Leonardo goes.
"House prices will fall and young people trained in Yeovil will leave."
Revised plans for the regeneration of the Octagon Theatre are expected to be debated by the council's planning committee south (which handles major applications within the former South Somerset area) when it meets in Yeovil on February 24 at 2pm.
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