Agenda item

Northampton Town Football Club and Northampton Saints Rugby Club - expansion plans.

Report of Director of Regeneration, Enterprise and Planning and Chief Executive (Copy herewith)

Decision:

Cabinet approved the principle of providing loan finance to Northampton Saints plc (“Saints”) and Northampton Town Football Club Limited (“NTFC”) to support stadia expansion and associated development on land presently within their control.

 

Cabinet delegated to the Chief Executive the authority, in consultation with the Section 151 Officer and the Leader of the Council, and approved the amounts and terms of any loan finance arrangements on a basis that takes into full account the matters set out at 3.2.1 of this report.

 

Cabinet supported the principle - pursuant to a previous Cabinet authority given to enter into a collaboration agreement with Homes & Communities Agency (“HCA”) - of this Council entering  into a Joint Venture  (“JV”) Agreement with a private company, HCA (as necessary) and NTFC for the development of that land forming part of Sixfields Stadium (shown edged red upon the attached plan at Appendix 1), together with other adjoining HCA land, on the basis that an agreement relating to a disposal at nominal initial value of the freehold interest (in the land edged red) to the private party concerned may be required to be completed prior to the commencement of physical development.

 

Cabinet delegated to the Director of Regeneration Enterprise and Planning the authority, in consultation with the Leader of the Council, to agree the terms of transfer of the land referred to at 2.3 and to contract generally with JV partners, on the basis that:

 

(i)                  this Council is first satisfied that the proposed comprehensive development scheme will be viable and generate a positive value for the land owners 

 

(ii)                that this Council is not exposed to any risk of financial loss or liability from its participation within the JV Agreement

 

(iii)               that adequate arrangements are made to re-provide suitable athletics facilities at an appropriate location as part of an overall approach to development.

 

Cabinet supported in principle, subject to the legal considerations set out in clause 4.3.3. of this report, that the net value generated for this Council from any Joint Venture Agreement that may be entered into (consistent with 2.4 above), may be used in whole or part to reduce any the levels of debt owed by NTFC to this Council (pursuant to 2.1 and 2.2 above), in support of the promotion of the wider economic and social benefits that would be generated for the Town.

 

Cabinet delegated to the Chief Executive the authority, acting in consultation with the Section 151 Officer and the Leader of the Council, to agree the basis of any reduction of debt owed to this Council by NTFC in the potential circumstances envisaged at 2.5 above.

 

Cabinet supported the principle of varying the existing lease of Sixfields Stadium to NTFC to permit the sharing of the facility by NTFC with another professional sports club and delegates to the Director of Regeneration Enterprise and Planning the authority, in consultation with the Cabinet Member for Regeneration Enterprise and Planning, to agree the terms of any lease variation.

 

Cabinet, subject to the final loan agreements, delegated to the Section 151 Officer, in consultation with the Cabinet Member for Finance and Resources, authority to incorporate the loans into the Council’s Capital Programme and noted the potential impact of the loans on the Council’s Affordable Borrowing Limit.

 

Cabinet welcomed the proposed partnership between the Saints and Northampton Borough Council to promote the town to visitors, in order to enhance the economic well-being of the Borough and delegated to the Chief Executive in consultation with the Leader of the Council the completion of this agreement.

 

Minutes:

Councillor Beardsworth addressed Cabinet and questioned who had been present when negotiations had been discussed and suggested that it was a report that needed to be examined by the Overview and Scrutiny Committee.

Councillor Glynane addressed Cabinet and expressed concerns about the uncertainty of the relocation of the athletics track next to the Sixfields stadium. He stated the facilities need to be put in place for the Northampton Athletics Club as part of the Olympic legacy and urged Cabinet to pass their recommendations to the Overview and Scrutiny Committee.

Councillor Palethorpe addressed Cabinet and commented that he was happy to see progress being made but expressed concerns that both the football club and the rugby club were incorporated in the same report to provide a finance loan and requested that it be further scrutinised to ensure there would be no legal challenges.

 

Councillor Mackintosh, as Leader of the Council submitted a report and commented that he was pleased with the long awaited report and noted that it had been a Manifesto pledge to support both clubs. In response to questions from Councillor Beardsworth, it was explained that there had been numerous people involved in negotiations, including himself, Cabinet Members, the Chief Executive of Northampton Borough Council and the Section 151 officer. He further commented that he was happy that the decision was transparent and had been scrutinised by officers but emphasised that there was a need to make progress as soon as possible.

 

 

RESOLVED:

         

1.    That the principle of providing loan finance to Northampton Saints plc (“Saints”) and Northampton Town Football Club Limited (“NTFC”) to support stadia expansion and associated development on land presently within their control be approved

 

2.    That authority be delegated to the Chief Executive, in consultation with the Section 151 Officer and the Leader of the Council, and approved the amounts and terms of any loan finance arrangements on a basis that takes into full account the matters set out at 3.2.1 of this report.

 

3.    That the principle - pursuant to a previous Cabinet authority given to enter into a collaboration agreement with Homes & Communities Agency (“HCA”) - of this Council entering  into a Joint Venture  (“JV”) Agreement with a private company, HCA (as necessary) and NTFC for the development of that land forming part of Sixfields Stadium (shown edged red upon the attached plan at Appendix 1), together with other adjoining HCA land, on the basis that an agreement relating to a disposal at nominal initial value of the freehold interest (in the land edged red) to the private party concerned may be required to be completed prior to the commencement of physical development be supported.

 

4.    That authority be delegated to the Director of Regeneration Enterprise and Planning, in consultation with the Leader of the Council, to agree the terms of transfer of the land referred to at 2.3 and to contract generally with JV partners, on the basis that:

 

(i)                  this Council is first satisfied that the proposed comprehensive development scheme will be viable and generate a positive value for the land owners 

 

(ii)                that this Council is not exposed to any risk of financial loss or liability from its participation within the JV Agreement

 

(iii)               that adequate arrangements are made to re-provide suitable athletics facilities at an appropriate location as part of an overall approach to development.

 

5.    That in principle, subject to the legal considerations set out in clause 4.3.3. of this report, that the net value generated for this Council from any Joint Venture Agreement that may be entered into (consistent with 2.4 above), may be used in whole or part to reduce any the levels of debt owed by NTFC to this Council (pursuant to 2.1 and 2.2 above), in support of the promotion of the wider economic and social benefits that would be generated for the Town, be supported.

 

6.    That authority be delegated to the Chief Executive, acting in consultation with the Section 151 Officer and the Leader of the Council, to agree the basis of any reduction of debt owed to this Council by NTFC in the potential circumstances envisaged at 2.5 above.

 

7.    That the principle of varying the existing lease of Sixfields Stadium to NTFC to permit the sharing of the facility by NTFC with another professional sports club and delegates to the Director of Regeneration Enterprise and Planning the authority, in consultation with the Cabinet Member for Regeneration Enterprise and Planning, to agree the terms of any lease variation be supported.

 

8.    That subject to the final loan agreements, delegated to the Section 151 Officer, in consultation with the Cabinet Member for Finance and Resources, authority to incorporate the loans into the Council’s Capital Programme and noted the potential impact of the loans on the Council’s Affordable Borrowing Limit.

 

9.    That the proposed partnership between the Saints and Northampton Borough Council to promote the town to visitors, in order to enhance the economic well-being of the Borough and delegated to the Chief Executive in consultation with the Leader of the Council the completion of this agreement be welcomed.

 

Supporting documents: