THE New Palace and Adventureland – the scene of summer-time fun for generations of Merseyside families, is to be sold.

The iconic arcade looks set to be replaced with apartments, shops and a luxury hotel because its owners can no longer keep up with its maintenance costs.

However, David Wilkie, who owns the site in New Brighton, insisted that a state-of-the-art arcade featuring small rides and the latest virtual reality technology will be located underneath the new development.

He said he wants to build a new funfair elsewhere within New Brighton and that the only entertainment lost to the resort will be Adventure Land.

Mr Wilkie added: “The building is falling into disrepair, it costs £100,000 a year to maintain before labour costs.

“The storm drains on the roof aren’t able to cope with the weather today, because they were built in 1939, so it overflows when there’s a deluge. This can cause floods in the building. It’s not sustainable to run it as it is.”

Turning to the discussion of what will replace the arcade, he said: “The Floral Pavilion (a theatre and conference venue) is currently losing £900,000 per year, it hasn’t taken off as a conference venue because people expect a hotel to be in the conference venue itself, rather than having to walk down the road to a cheap hotel.

“A big hotel right next to the Floral will now be built. It will be a great advantage for the area to be able to hold large conferences with the correct facilities.”

Mr Wilkie also spoke of his sadness at having to sell the arcade, he said: “I’ve owned the site since 1999, my family have been in it since the early 1900s.

“It tears at my heartstrings to see the place demolished, but there’s no other way forward, the costs just aren’t sustainable.

“At this stage the plans are just getting off the ground. The funders could pull out or the council might reject the application, it’s not a done deal yet.”

Locals reacted to the news with disappointment.

Posting on Facebook, Tony Richards said: ”It’s the end of an era. The Wilkies have been in New Brighton for generations. I worked as a ride attendant back in the early 70s. The owner then was Bill Wilkie. Dave and his brother were just kids and we were forbidden to speak to them. We knew our place!”

Alan Ledsham said: “New Brighton has been screwed since the ferry was stopped years ago and they lost the outdoor pool.

“It’s a mish mash of hodge podge stores with no rudder. The whole of New Brighton could be amazing but with zero political will nothing will change.

However, many reflected on the changing times and called for something positive to come out of the sale.

Nick Clarke said: “The Wilkie family have provided entertainment and employment and brought prosperity to New Brighton for over one hundred years.

“It would be sad to see that presence disappear, truly the end of an era but times have changed, my only hope is that what is to come will benefit all and not price the local people out. I wish them luck with their new venture.”

Sue Kenyon said she was happy, as the new development will create jobs and Stu Webb thought the fare had had its day, “Got to move with the times,” he said.