Agenda item

This report provides an update on the progress made towards meeting the conditions of a proposed loan to York City Football Club, prior to consideration of the proposal at Full Council on 25 September 2008, as requested by the Executive at their meeting on 15 July 2008.

*RESOLVED:(i) That the Executive re-affirms its commitment to a Community Stadium and recognises the importance of securing the £2 million Football Foundation grant to that end.

(ii)That no further action be undertaken at this time to extend a loan from the City of York Council to York City Football Club, on the understanding that the Club is undertaking negotiations with the Football Foundation iin order to have the interest on that body’s loan to the Club rolled over into the future sale value of Bootham Crescent Football Stadium.

                                    (iii)       That the Director of City Strategy recruit, in accordance with the decision of the Staffing Matters and Urgency Committee on 21 May, to secure the appointment of a project manager to:

a)                 establish a site;

b)                 consult on the design and operation for the wider benefit of the community of the City;

c)                  establish the cost of, and sources of funding for, a community stadium and

d)                 deliver a community stadium by 2012.

(iv)That Officers continue their dialogue with York City Football Club, and York Knights, on how to sustain spectator sports in the City, and on the continuation of other sports clubs based at Huntington Stadium.

(v)That the Chief Executive write to the Football Foundation setting out the actions decided in Resolution (iii) above and the commitment of the Council to work in partnership with YCFC to deliver the community stadium.

REASON:                  To support and progress the project to provide a new community stadium, which will have a positive effect upon York’s local pride, commercial momentum and civic profile.

* Note:  These resolutions supersede the recommendations made at the Executive meeting on 15 July 2008 (Minute 37 refers); those recommendations will not, therefore, be put before Full Council.

Members considered a report which provided an update on progress made towards meeting the conditions of a proposed loan to York City Football Club (YCFC) since the matter last came before the Executive, on 15 July 2008 (Minute 37 of that meeting refers).

In July, the Executive had recommended that full Council approve the loan in principle, subject to ensuring that the Council was protected in securing any loan against the existing ground and subject also to ensuring sound financial management in YCFC and its majority shareholder, JM Packaging.  Another important factor was the status of the Football Stadia Improvement Grant.  Currently, YCFC were unable to meet the conditions of their existing loan, which could mean the loss of a £2 million Grant to the project.

The report outlined the following options for Members’ consideration:

Option 1 – do nothing, as set out in the July report to Executive;

Option 2 - replace the Football Foundation (FF) loan, as previously recommended, subject to the required conditions being met;

Option 3 – provide a loan to cover interest on the FF loan.  This would mean that the Council’s total outlay and liability would be less and that the FF would turn their loan into a grant when work began on the new stadium.  Further work would be needed to examine the advantages and disadvantages of this option.

Option 4 – buy the freehold of Bootham Crescent and rent it back to YCFC pending completion of a new stadium.  A considerable amount of work would be needed to evaluate this option, which would further delay the decision.

In the light of recent discussions with YCFC, and the comments made on this item under Public Participation, Members also considered a fifth option, namely to provide the alternative support requested by YCFC rather than recommending the grant of a loan from the Council.

Having noted the comments of the Shadow Executive on this item, it was

*RESOLVED:(i) That the Executive re-affirms its commitment to a Community Stadium and recognises the importance of securing the £2 million Football Foundation grant to that end.

(ii)That no further action be undertaken at this time to extend a loan from the City of York Council to York City Football Club, on the understanding that the Club is undertaking negotiations with the Football Foundation iin order to have the interest on that body’s loan to the Club rolled over into the future sale value of Bootham Crescent Football Stadium.

                                    (iii)       That the Director of City Strategy recruit, in accordance with the decision of the Staffing Matters and Urgency Committee on 21 May, to secure the appointment of a project manager to:¹

a)                 establish a site;

b)                 consult on the design and operation for the wider benefit of the community of the City;

c)                  establish the cost of, and sources of funding for, a community stadium and

d)                 deliver a community stadium by 2012.

(iv)That Officers continue their dialogue with York City Football Club, and York Knights, on how to sustain spectator sports in the City, and on the continuation of other sports clubs based at Huntington Stadium.²

(v)That the Chief Executive write to the Football Foundation setting out the actions decided in Resolution (iii) above and the commitment of the Council to work in partnership with YCFC to deliver the community stadium.³

REASON:                  To support and progress the project to provide a new community stadium, which will have a positive effect upon York’s local pride, commercial momentum and civic profile.

* Note:  These resolutions supersede the recommendations made at the Executive meeting on 15 July 2008 (Minute 37 refers); those recommendations will not, therefore, be put before Full Council.