Council loan to kickstart £26m Salford stadium

SALFORD City Council is teaming up with landlord Peel Holdings in a joint venture to realise the £26m 15,000-seat stadium.

The scheme, delayed by the recession, will be home to the Salford City Reds rugby league club in time for the 2012 season.

The council’s cabinet has today approved plans to form a joint venture company with Trafford Centre owner Peel.

The council will fund the construction of the facility through loans, which will be repaid through land sales, retail lettings and corporate hospitality income and car parking revenues.

The project will transform land at Barton by the M60, with Peel and the city council pooling their land-holdings to create a single, 70-acre site.

Outline planning permission for the land had already been granted for a stadium and retail use.Detailed plans are expected to be submitted by the end of May.

Funding will also include a grant from the North West Development Agency to prepare the land for development.

Work to prepare the site for development is expected to start next month, once the legal agreements to bind the joint venture company have been signed.

Salford City Council leader, Cllr John Merry said: “This development would be another landmark of Salford’s regeneration, adding to an already impressive line-up nearby of the Lowry and MediaCityUK.

“The partnership approach we’re adopting also means the city will be part-owner of a major sporting and community asset.

“Sport is a big business these days and making suitable, state-of-the-art facilities available for a successful club will bring economic benefits to the city.

“Our plan is about supporting sport in Salford and I believe it is the right thing to do.”