Ultimatum over £44m stadium plans
THE City of York Council faces an ultimatum following the report published today on the York Community Stadium.
Next week the council’s executive committee will decide between two options – approve another £7.2m to fund the increase in projected costs or go back to the drawing board, putting plans back by several years.
If they choose not to go ahead, the £4.2m which has been ploughed into the scheme so far will have to be written off.
Greenwich Leisure was appointed as preferred bidder for the project, which would see an 8,000 seat stadium built at the Vangarde Retail Park for football and rugby league games.
The stadium would be home to the city’s football and rugby league clubs. York City FC currently sit 23rd in League Two, and facing relegation out of the Football League, with 11 games left. Rugby league club York City Knights, which is in the sport’s third tier, was formed in 2003 although there has been a rugby club in the city since 1868.
Last July, plans for the stadium were delayed yet again, as delays to signing contracts held the project back.
The cost of the Community Stadium scheme has gone up, to £44.2m.
The council will need to invest a total of £14.4m in the scheme, up from the £8m estimated in its 2014 forecasts. £1m will come from the Venture Fund, with the rest from prudential borrowing.
£15.3m has been allotted to the project from the Vangarde retail development, while York City Football Club and the Football Stadia Improvement Fund will contribute £2m.
The long-awaited project faces a decision from an executive meeting on 17 March, followed by a full council meeting on 24 March. If approved, the council will have to increase borrowing by £5.4m.
The report published today recommends that the authorities go ahead with the plans, citing increased revenue, of £500,000 every year, from the retail site, as well as five restaurants and a 13-screen cinema development that are also planned for the site.
The new stadium and leisure complex is forecast to contribute £3m in business rates over a 13-year period, according to the report.
If plans go ahead, construction is due to complete by winter 2017, with the site fully operational by 2018.
Cllr Chris Steward, Leader of City of York Council, said: “We have made clear we are fully committed to delivering the Community Stadium and Leisure Facility project. In 2015 significant budget overruns emerged and officers have worked hard to address these.
“Through these proposals we anticipate the site will be completed by Winter 2017, which will provide a wide-range of significant benefits for the city, including for the city’s football and rugby league teams.”
A £2m athletics track has already been delivered in partnership with the University of York. it will be officially opened next month.
