Agenda item

The Committee received a comprehensive presentation on a proposal from Slough Town Football Club (STFC) for the use of the former Arbour Vale School site.  The Club and their professional representatives outlined a proposal for a new football stadium with a 3,000 seat capacity, associated leisure/sporting facilities as well as an hotel and housing.  Officers noted that the stadium was being funded from the capital receipt for the sale of housing land and that, in effect, the Council was indirectly funding the football ground.  According, if land values fell or costs increased, then the Council’s capital receipt would be reduced and the authority was therefore carrying a risk over which it had little control.

On completion of the presentation, Members raised the following issues:-

·  A Member asked whether the anticipated capital receipt of £3.5m was a reasonable one.  Ms Bradbury on behalf of the Club and the Council Officer, confirmed that this valuation was within the range if the site was simply sold for housing.  However, the Officer stressed that there was an inherent risk in this proposed arrangement as against the simple disposal of the land for housing. 

·  A Member asked whether the scheme could work if the hotel proposal did not go ahead and whether there was a minimum occupancy rate in the hotel for it to provide sufficient income.  The future of the West Wing was also queried.  Ms Bradbury commented that the proposal was that there would be an hotel of between 90 and 100 rooms and the profit derived would subsidise the sporting facilities over a period of 25 years.  The proposal was that funding would be passed to a Community Trust which would manage the football club and associated sporting facilities.  The Officer commented that the financial impact of there being no hotel within the scheme would be in effect that the proposal would be a non-starter as it showed both the Trust and the Club running at substantial deficits.

Ms Bradbury confirmed that the proposal would be to accommodate the West Wing within the development proposals.  She also commented that another key element of the proposals would be to seek FA chartered status which would free up additional grant contributions to the football club.  Whilst these had not yet been confirmed, she was confident that such grants would be forthcoming.

·  In response to a question, Ms Bradbury stated that much of the hotel demand would be generated from the site itself and that the hotel would not be in competition with other hotel facilities in the area. 

·  Members referred to the Green Belt issue and asked whether the developers had taken into account the fact that it may be difficult to provide an hotel of the size required given the constraints.  Ms Bradbury commented that they were well aware of the potential difficulties but they believed that they could come up with a scheme which would meet the Green Belt requirements.

·  It was also confirmed that some 65 units of housing would be provided.  It was recognised that family houses were in short supply and that these were envisaged although the final mix would be decided in consultation with the Housing Authority.

·  Similarly, it was noted that the parking and transport links to the stadium would be agreed in consultation with the planners and the Highway Authority. 

·  With respect to the future management of the football club and associated facilities, it was explained that the Community Trust, which the Council would be invited to take part in, would manage the facility with some 60% of the original site being within the Trust’s control.

·  A Member asked for clarification of the position if the hotel failed or some other unforeseen issue arose.  The Officer commented that any commercial venture of this nature carried an inherent risk and that, whilst safeguards could be put in place, it was not possible to eliminate all elements of risk. 

·  In response to a question, Ms Bradbury confirmed that all opportunities would be taken to engage local children in the activities taking place at the club.  In addition, it was proposed to house the Boxing Club within the development site with a state of the art facility. 

·  The representatives of STFC were asked whether the club could continue to operate in the meantime whilst the development went forward.  They confirmed that the club was managing within its very limited resources at the present time but was confident that, if the proposal went ahead, it could only be an extremely positive move for the club.

·  With regard to the ownership of the land, the Officer confirmed that, apart from the housing site, the land for the hotel, stadium and car parking would be retained within the freehold ownership of the Council subject to a 125 year lease.  The housing land would be within the ownership of Paradigm Housing.  The Officer confirmed that there was no contractual liability on the Council if the Trust were to get into financial difficulties.

·  Members asked how long the whole process would take and expressed some scepticism at the timescales shown in the report.  The Officer confirmed his view that, given the possible difficulties with planning and Green Belt issues, the proposal was at least two years away.

·  It was noted that negotiations had not yet started with the adjoining St Joseph’s school in respect of the possible use of their pitches but that preliminary discussions had indicated that they were more than happy to co-operate.

·  In response to a question, the Officer outlined the potential risks for the Authority in what was a speculative development.  He confirmed that, wherever possible, such risks would be mitigated but it was impossible to remove all risk.  There were however a number of real benefits for the town and for the football club if the scheme went ahead but he reiterated that if the hotel element failed, the scheme was not viable.

·  A Member asked whether it would be feasible for the Council simply to undertake a scheme itself and this was confirmed.

Following further debate, the Committee felt on balance that the proposal was an exciting opportunity for the town which, as well as meeting the long term objective of providing a permanent for STFC within the Borough would, through the associated sporting opportunities, have a substantial benefit to the community at large, not least the young and that it should be supported for this reason.  The Committee was however concerned that given the fact that a commercial proposal of this nature always carried an element of risk for the authority, the Officers should be satisfied that adequate checks and balances were in place to protect the Council’s financial position.  The Committee also felt that, given that the whole reason for supporting such a proposal would be to provide a permanent home for the football club, any such development should be phased so that the football stadium was built first.

Resolved -   That the Cabinet be recommended to support the Slough Town Football Club proposals subject to:-

(a)  Officers being fully satisfied that sufficient checks and balances are in place to protect the interests of the Council and tax payers.

(b)  That the development is phased so that the football stadium is built first.