A £300,000 'registered charge' against Morecambe's troubled Winter Gardens could be putting off potential investors.

A council committee this week also learnt that the 'charge' understood to be a mortgage was in place before building work started in 1995.

The building is owned by the Buildings At Risk Trust, a Derbyshire based charity, but the company which completed the building's extensive renovations, Barnfield Construction.

The issue was raised as members of the external affairs review board demanded more information on the ownership and financial situation of the building, still an empty shell despite being restored with more than £1 million of public money six years ago.

Replying to a question from Labour's Cllr Peter Robinson, the council's corporate director (central services) said the charge: "Would have to be cleared by someone.

Barnfield would have to be satisfied in some way. Councillors are demanding more information on the past and present ownership of the property, the building's finances and, in particular, the terms of a £112,000 loan the council made to Barnfield to complete the first phase of building work six years ago.

Conservative Cllr Sarah Fishwick asked if there were any outstanding rates due on the building, and whether these were the result of the council using its discretion in the past.

Fellow Tory, Cllr Roger Mace, asked for details of the terms of the loan while Labour Cllr Abbott Bryning questioned what action the council could take to recover the money from BART or Barnfield.

Cllr Bryning said he understood the loan was to be paid back when further grants were awarded, but added: "The grant aid will come with conditions attached, which won't necessarily mean we can take £112,000 out of it.

His colleague, Cllr Trevor Tattersall, asked why public money was spent on a scheme which had not identified a final use for the building.

Other questions were raised by Evelyn Archer, who was giving a talk on behalf of the Friends of the Winter Gardens.

Mrs Archer, who has been campaigning to get the building re-opened since 1985, set out the group's vision of a multi-purpose facility which could accommodate events such as the punk festival.

She rejected many aspects of the proposed museum of comedy for the site, which would see a comedy club in the area of the current stage, an idea recommended by a consultants report.

Mrs archer asked for the help and expertise of the council in setting up a trust to run the building and bring it back into use.

She also questioned whether the Single Regeneration Budget board, which provided the bulk of the public money to fund the refurbishment, were aware of Barnfield's interest in the building, in particular an option to buy a 999 year lease.

Councillors are now eagerly anticipating a further report by officers which is expected at the board's next meeting.