Minutes from the Scrutiny Committee

[Ted]

The following are Slough's Scrutiny Committee's minutes on the Arbor vale proposals.

 

"67. Former Arbour Vale School Site – Future Use and Disposal

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.

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• 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.

 

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• 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.

 

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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.

( That the development is phased so that the football

stadium is built first."

 

 

[RodB]

Thanks for posting this Ted. Unless I'm overlooking problems which are obvious to those closer to the situation, this seems very positive for STFC.

 

[Barry Scott]

well aside from the fact that if the hotel gets shot down the whole plan goes down the tubes, very positive indeed. Of course, if I have read the wrong I apologise, I'm in a stupid amount of pain at the moment

[HorshamRebel]

Thanks Ted.

 

They keep on getting on thing wrong tho.

 

The stadium is NOT going to be 3000 seat capacity.

[Ted]

Originally Posted By: Barry Scott

well aside from the fact that if the hotel gets shot down the whole plan goes down the tubes, very positive indeed. Of course, if I have read the wrong I apologise, I'm in a stupid amount of pain at the moment

Yes. I think that planning permission may well be the crucial issue.

[Ted]

And the minutes from the subsequent Cabinet meeting

 

"89. Former Arbour Vale School Site: Future Use and Disposal

 

 

The Chair advised that he had been approached by a firm of solicitors who had wished to make an alternative presentation with regard to the future use and disposal of the former Arbour Vale school site. As the request had not been in writing and as there was no knowledge of the type of proposal being submitted he had indicated that he was not prepared to accept an lternative

presentation being made.

 

The Cabinet 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 3000 seat capacity, associated leisure/sporting facilities as well as a hotel and housing.

 

The Overview and Scrutiny Committee had received the presentation and considered the matter at its meeting on 7th February 2008. Following consideration by the Committee it was agreed to recommend to the Cabinet that it supported the recommendations as set out in the report subject to the

following provisos:-

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

(ii) That the developments be phased so that the Football stadium was built first.

 

Councillor Swindlehurst, Chair of the Overview and Scrutiny Committee,advised that the Committee had 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 home for STFC within the Borough, would

 

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through the associated sporting opportunities have a substantial benefit to community at large. The Committee had however been concerned that given the fact that a commercial proposal of this nature always carried an element of risk for the authority, officers needed to be satisfied that adequate checks

and balances were in place to protect the Council’s financial position. He asked if the Council were to support the proposal how it was planned to facilitate the process to reduce any planning delays and how a creative solution could be found to the green belt policy/hotel issue. The Chair advised that if the Cabinet agreed to support the proposal it would then do its

best to ensure its success. However it should be noted that the planning function was entirely independent. It was possible that the proposal would be called in (by the Government Office for the South East) because of the effect on the green belt. Every effort would be made to adopt a constructive/optimistic approach to the proposals. Members of the Cabinet discussed the presentation and made a number points including:-

 

• Council Officers would always be as helpful as possible in facilitating development in accordance with the Local Development Framework.

• Concern was expressed over the second recommendation of the

Overview and Scrutiny Committee with regard to the phasing of the

proposals. It was felt that to build the stadium first would have more risk associated with it as the other parts of the proposal contributed to the financial viability and income stream.

• It was noted that if agreed it would be a highly complex contract arrangement and that the risks to the council needed to be kept at a minimum.

Commissioners indicated that they were in favour of the proposals that had been put before them. There was a wish to see Slough Town Football Club housed within the Borough and Commissioners very much welcomed the youth development plan proposed. There was concern about imposing any

restrictions with regard to the phasing of the project as this was felt to be a matter for the Slough Town Football Club. It was proposed that the report and presentation from Slough Town Football Club be noted that recommendation

( in the report be supported with the addition of the checks and balances being put in place in accordance with the first recommendation of the Overview and Scrutiny Committee and all outstanding pre-contract issues outlined in paragraph 4.44 of the report being resolved within 3 months. It was

proposed that recommendation © as outlined in the report be agreed and that a new recommendation (d) be agreed making it clear that the transaction would be on the basis of a disposal by way of 125 year lease.

 

Resolved –

(a) That the contents of the report and the presentation from Slough Town Football Club be noted.

( That the terms proposed for the transaction contained in appendix C

 

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be approved and that the Assistant Director, Property Services be

authorised to complete a formal agreement on these terms, subject to officers being fully satisfied that sufficient checks and balances are in place to protect the interests of the Council and Council Tax payers and in particular that all outstanding pre-contract issues referred to at

paragraph 4.44 of the report are resolved within 3 months from the date of Cabinet and subject to any alterations or amendments

required to make commercial sense or to protect the Council’s

interests.

© That STFC’s proposals must provide options for (i) the West Wing arts centre and theatre to be retained as existing and (ii) for the West Wing’s re-provision as part of the new stadium. A decision on these options will be taken a future Cabinet at the same time as STFC’s formal offer and extent (if any) of any under value is considered.

(d) That the transaction be on the basis of a disposal by way of a 125 year lease."

[Staines-upon-Thames Rebel]

So its moving forward? - with the councils usual level of caution.