From the way i read it in the Echo, the club will receive none of this £3million. It goes straight to the council as its half of the money we would have to pay them for the development of FF.
Spot on - this is not Sainsburys giving RM a cheque for £3m. It is Sainsburys guaranteeing the first £3m of a total £6m that the applicants agree to cough up to the council as part of the Section 106 agreement.
The original 106 agreement stated that this amount should be paid upfront. The special meeting that has hastily been arranged for next week (conveniently the day before our next trip to the High Court) is asking the council to agree to vary this agreement to the following payment schedule:
It is proposed to re-profile the S.106 contribution towards the town centre as follows:
£500,000 On commencement of the stadium
approx July 2010
£500,000 On commencement of the supermarket
Sept 2011
£2,000,000 On the opening of the supermarket
Sept 2012
£3,000,000 5 years after practical completion of the retail park OR
On completion of the redevelopment of
the London Road Sainsburys site
whichever is the sooner
March 2017
Also the following has been said in a report to the Development Control Committee which is of interest:
In simple terms, the applicant states that the current arrangements are not financially viable and likely to lead to the loss of the scheme. Currently the cost of delivering all the necessary elements of the scheme leads to an estimated negative asset value of around £10,000,000. Such a negative value is not considered sustainable and not acceptable to SSL.
In the circumstances, the applicant has asked the Council to consider a reformulation of the Town Centre Regeneration Contribution. Without this change the scheme will not be deliverable in its current form; particularly given the cost of other acquisitions which have been necessary to deliver other elements of the scheme, e.g. the Prospects College site.
Should the variation to the S.106 agreement as described below be agreed and the SSL board approve the financing of the scheme, officers have been assured that the remaining planning issues associated with the redevelopment of Root’s Hall and St. Mary’s Court and the development of the Fossett’s Farm elements will be speedily pursued.
And the final recommendation to the committee is as follows:
Recommendation
Members are recommended to:
DELEGATE to the Head of Planning & Transportation or Group Manager of Development Control & Building Control AUTHORITY TO VARY the S.106 agreement associated with the planning permission reference 06/01300/FUL in accordance with section 7 of this report.
So in my eyes that means if the council say no the whole deal is dead in the water(Roots Hall,FF etc) If they say yes then Sainsburys will 'speedily pursue'
the deal for Prospects and the surrounding areas (I'm guessing this is why the deal was put on hold last week).
Then we just have to find the taxmans money,pay the players,pay the trust, pay the PFA and try and stay in League One!
