Agenda item

HOME PARK FOOTBALL STADIUM AND HIGHER HOME PARK

Meeting of Cabinet, Tuesday 3 September 2013 2.00 pm (Item 41.)

The Director for Place will submit a written report on a request to assist the delivery of a major improvement to the Home Park Football Stadium, in a £57.0m commercial development centred on the adjoining privately-owned Higher Home Park. The proposal will also include improvements to sporting facilities and landscaping at Central Park in the immediate vicinity of the Home Park area. In order to enable commercial funding to be obtained, Cabinet is requested to authorise the surrender of the existing lease of the football stadium, the re-grant of the stadium lease over a reduced area, the transfer of the freehold interest of part of the existing leasehold area that is needed for the proposed commercial development, and associated estates matters mainly relating to site access.

Minutes:

Anthony Payne (Director for Place) submitted a written report on a request to assist the delivery of a major improvement to the Home Park Football Stadium, in a £57m commercial development centred on the adjoining privately-owned Higher Home Park. The proposal would also include improvements to sporting facilities and landscaping at Central Park in the immediate vicinity of the Home Park area. In order to enable commercial funding to be obtained, Cabinet was requested to authorise the surrender of the existing lease of the football stadium, re-grant the stadium lease over a reduced area, transfer the freehold interest of part of the existing leasehold area that was needed for the proposed commercial development, and agree associated estates’ matters (mainly relating to site access).

Councillor Lowry (Cabinet Member for Finance) introduced the proposals and indicated that -

?	the proposals would provide a new spectator grandstand, cinema, ice rink and hotel with no financial contributions being required from the local authority;
?	600 construction and 400 local jobs would be created;
?	Kier Construction had been appointed by Akkeron as its preferred contractor to undertake the building works and they have a very good programme for employing local labour and supporting apprenticeships;
?	the local authority would receive rent from the football stadium and commercial units, and business rates of £1.5m would be generated from the completed project with the City Council retaining 50 per cent of the rates income.

Cabinet Members referred to -

(a)	the generation of £1.1m for Central Park which would fund improvements to allotments, walkways etc;
(b)	the improvement of facilities for the football club;
(c)	the provision of an ice rink which could be used by the ice hockey team and for competitive events and training;
(d)	the provision of a medical centre with the cinema and alongside the Life Centre.

David James (Head of Strategic Development Projects) attended the meeting and the Chair thanked him for his work on the negotiations.

Alternative options considered and reasons for the decision –

As set out in the report.

Agreed –

(1)	to accept a surrender from Plymouth Argyle Football Club (PAFC) of the existing 30 year Home Park lease from October 2011, and to grant a new lease to PAFC on a reduced area including all the existing and proposed spectator stands, for 30 years from the original lease commencement date;
(2)	to grant to Higher Home Park Nominee, Akkeron or developer -
	?	a lease for 125 years of four ground floor commercial units within the new grandstand;
	?	a Building Lease for 125 years of approximately 1.22 acres of land to the north and east of Higher Home Park, all of which is within the existing stadium lease, and subsequently to transfer of the freehold interest of the above 1.22 acres of land to Higher Home Park Nominee, Akkeron or developer following completion of all development works on Higher Home Park and Home Park;
	?	freehold easements to allow pedestrian and vehicle access over the City Council’s adjoining land to the new commercial development;
(3)	all the arrangements in (1) and (2) above to be in accordance with the financial terms set out in the written report;
(4)	to authorise the Director for Place in consultation with the Cabinet Member for Finance to agree any additional or supplementary legal and estates’ issues associated with this project that may arise prior to completion of the relevant legal documentation.

Supporting documents: