Issue - meetings

The Chief Operating Officer and Chief Finance Officer to present a report which provides an update on the Commercial Deal agreed by Executive in October 2017 in respect of disposal and development of land adjoining the new Community Stadium, and presents options on the way forward in the light of the current position.

Note: This item was added late to the Forward Plan under urgency procedures, as a decision is required prior to the expected completion of the Stadium in December 2020.  A Regulation 10 notice has been published on the council’s website.

Resolved:  (i)      That Option 1 be approved, accepting that the three restaurant units are not let at Practical Completion and the associated reduction of £1.375m in capital receipt towards the Stadium project.

                   (ii)      That the additional ongoing Treasury Management costs of £96k, which will need to be incorporated into future years’ budget strategies, be recognised.

Reason:     To ensure that the stadium is fully funded at the lowest risk to finances going forward.

[See also under Part B]

The Finance Manager and the Head of Asset & Property Managementpresented a report which provided an update on the Commercial Deal agreed by Executive on 19 October 2017 regarding disposal and development of land adjoining the new Community Stadium, and set out options for the way forward.

The update focused on the three Commercial Units included in the deal, which had been leased to Legal & General (L&G).  The terms of the lease obliged L&G to use reasonable endeavours to secure tenants for the units, but reduced the amount payable by £1.375m should none of the units be let by completion of the build.  None of the units had been let.

Three options were available, as detailed in paragraphs 18-51 of the report:

Option 1 – accept that the units are not let and £1.375m will not not be received from L&G.

Option 2 – take a 25-year lease of the units from L&G, on the terms set out in exempt Annex 2. 

Option 3 – accept full ownership of the units, with no further financial contribution from L&G.

Analysis of the options had identified Option 1 as the recommended option, in terms of providing the greatest financial certainty to the council and limiting future liabilities.  Officers confirmed that the Customer & Corporate Services Scrutiny Management Committee, having considered the report at their meeting on 7 December, were broadly supportive of Option 1.

Resolved:  (i)      That Option 1 be approved, accepting that the three restaurant units are not let at Practical Completion and the associated reduction of £1.375m in capital receipt towards the Stadium project.

                   (ii)      That the additional ongoing Treasury Management costs of £96k, which will need to be incorporated into future years’ budget strategies, be recognised.

Reason:     To ensure that the stadium is fully funded at the lowest risk to finances going forward.