{meta} Decision - City of Salford Community Stadium

Decision details

Decision status: Recommendations Approved

Is Key decision?: No

Is subject to call in?: Yes

Decision:

Salford City Council - Record of Decision

 

I Paul Dennett, City Mayor, in exercise of the powers contained within the Salford City Council Constitution do hereby:

 

1.     Give consent to The City of Salford Community Stadium Limited’s long lease disposal of land at the stadium site to Aldi Stores limited on the condition that the premium received on the grant of that lease (net costs and allowances for abnormals) is paid to the Council.

 

2.     Give consent to the Council waiving the restriction of use on the Stadium site to allow for the change of use to Aldi and the land transferred to assist in realising the Port Salford development.

 

3.     Authorise that the joint legal service is instructed to conclude all documentation necessary to give effect to the consent in (1) and the consents and waiver in (2).

 

The Reasons are to enable the completion of the disposal from CoSCoS to Aldi and allow The City of Salford Community Stadium Company Limited to reduce the debt payable to the Council.

 

Options considered and rejected were – n/a

Assessment of Risk – Medium

Failure to give consent will jeopardise CoSCoS’s business plan and the regeneration of the area.

The direct financial risk to SCC in the proposed transaction is that CoSCoS’s sale of land diminishes the value of the remaining land, and hence the value of the council’s security against the debt owed by CoSCoS.

Provided that CoSCoS uses its receipts to pay off an element of its debt to SCC, the Council’s credit risk is reduced.

If CoSCoS does not use the receipts to pay off an element of its debt to SCC, then the security value will have reduced but the debt will not, and the Council’s risk is increased.

 

The source of funding is n/a

Legal Advice obtained: Yes – Michelle Brice (Shared Legal Service)

Financial Advice obtained: Yes – Chris Hesketh (Head of Financial Management)

The following documents have been used to assist the decision process:

The relevant documents contain exempt or confidential information and are not available for public inspection

 

Contact Officer:  Chris Hesketh    Tel No: 793 2668

 

This decision is not subject to consideration by another Lead Member /Strategic Director

The appropriate scrutiny panels to call-in the decision are the Overview and Scrutiny Board and/or the Growth and Prosperity Scrutiny Panel.

 

 

Signed: Paul Dennett        

City Mayor

Dated: Monday, 28 October 2019

 

 

*           This decision was published on Monday, 28 October 2019                                                

*           This decision will come in force at 4.00 pm on Monday, 4 November 2019 unless it is called-in in accordance with the Decision Making Process Rules.

 

 

 

Publication date: 28/10/2019

Date of decision: 28/10/2019

Decided at meeting: 28/10/2019 - Property / Regeneration Briefing

Effective from: 05/11/2019

Accompanying Documents: