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[originallambrettaman]

Originally Posted by barney18680:1400834
Why does Mr Allam need to own the stadium in order to build the sport village? I believe the council has said he can build his sport village on the West Park site so why cant he just go ahead and build it anyway? Please don't think I've taken the councils side because at the end of the day I believe it will be run better in Mr Allam's hands but why can't he just build the sport village. In a way it might force the councils hand.
. Because he needs to own the stadium in order to raise the money to build the stadium.......I think, but now that's makes me wonder, how does AA intend to fund meltno?

The important thing is the land more so than the actually building on it (ie KC Stadium). In the case of Melton, the ERYC appear to be supportive in providing the land. Any developer, no matter how large needs to acquire finance in order to bankroll a development. This is done by securing the lending against the value of land and of course the value of the buildings as the construction work proceeds.
BTW, I think the KC Stadium is considerably overvalued by the council at a figure of £40M. They base this on the build cost when constructed. However, its current value should be related to its commercial revenues (ie rent received from HCAFC, HFC and HCC). From memory I am sure that the total rental income is only in the region of about £100k per annum. If anyone knows the actual figure I would be interested to know. Most of the value of the site is actually Walton Street Car park and the undeveloped areas of land. This is because it is ripe for development, however, again its current value is minimal whilst only used as a market and annual fairground.
With Planning Permission of course its value shoots up. The total current value of all the site based on its revenues generated will probably be in the region of £2-3M. However, with planning permission the site will be worth about £30-40M. That in a nutshell is the difference between a backward thinking Old Labour Council who own the site and an entrepreneur/businessman who wishes to realise its potential.

There's a couple of errors in there. Firstly, HCC didn't offer him the site around the KC, they offered him the wasteland immediately next to the stadium, but not Walton St car park, as they refuse to move the fair, so the site offered is way too small. To get round this, they tried to get him to consider using the Costello site for the sport village, with the KC remaining as it is. Secondly, there is no income from the stadium at all, it actually costs the council, as they rent offices at the stadium and pay considerably more rent than they receive.

 

[cityhullcityhullcityhull]

There's a couple of errors in there. Firstly, HCC didn't offer him the site around the KC, they offered him the wasteland immediately next to the stadium, but not Walton St car park, as they refuse to move the fair, so the site offered is way too small. To get round this, they tried to get him to consider using the Costello site for the sport village, with the KC remaining as it is. Secondly, there is no income from the stadium at all, it actually costs the council, as they rent offices at the stadium and pay considerably more rent than they receive.

I was basing my figures on the scheme proposed by Allam. I think its fair to say Mr Allam has not taken too kindly to the advice the Councilors have subsequently given to him regarding possible alternatives.
On the value of the stadium, all rental incomes have to be considered to determine its value. As I mentioned, I dont know all the facts, however does the rent not go to the SMC for the running of the facility? I am fairly sure that most of the rent is from HCC.

 

[merchantman5]

Why does Mr Allam need to own the stadium in order to build the sport village? I believe the council has said he can build his sport village on the West Park site so why cant he just go ahead and build it anyway? Please don't think I've taken the councils side because at the end of the day I believe it will be run better in Mr Allam's hands but why can't he just build the sport village. In a way it might force the councils hand.

I think that he needs the stadium to use as collateral for loans to build the sports village.I don't think the council have said he can have the land anyway as it includes the fairground. I see on the karoo news site that the council have been in talks with the Iceland to use the area for olympic training, shame we have very little olympic training facilities.

 

[barney18680]

That explains it. Mr Geraghty seemed to make out they offered Mr Allam all the land he wanted. This was obviously politician speak, or as I call it, bollocks.