Decision status: Recommendations Approved
Is Key decision?: No
Is subject to call in?: Yes
Salford City Council - Record of Decision
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).
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 following documents have been used to assist the decision process:
This decision is not subject to consideration by another Lead Member /Strategic Director
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