Content

Salford City Council - Record of Decision
(Cabinet)
 
I,
Paul Dennett, City Mayor, in consultation with Cabinet and in
exercise of the powers contained within the City Council’s
Constitution do
hereby:
 

Consider the proposal put forward
within the report to acquire the City of Salford Community Stadium
either through the outright purchase of the Stadium asset or for
the City Council to take full control of the City of Salford
Community Stadium Ltd (Coscos) through the acquisition of Peel’s shares
in Coscos, on the terms set out within
the report.

 

Note
the impact of a decision to purchase on the Council’s debt
position in Coscos which will see its
priority debt position in Coscos
reduce, reflecting the value attributed to the stadium as part of
the purchase arrangement.

 

Agree
that any resolution to purchase must be subject to the completion
of the proposed new lease of the stadium and authorise officers to
continue to negotiate the terms of the lease and any purchase
agreements which will be subject to a subsequent Executive
decision.

 

To
note that specific financial and legal advice is still being
finalised in order to complete any financial and legal implications
advice which will determine which route to purchase is
preferred.

 

Note
the opportunities and risks associated with such a purchase in
coming to a decision.

 

Note
that a full and final report will be brought to Cabinet as an
Executive Decision in advance of the purchase which will request
authorisation for the transaction in accordance with the final
negotiated terms and for officers to complete the necessary legal
documentation.

The Reasons are:
 
To
support the achievement of the objectives set out in the
Council’s statement of intent approved by the Council on
20th March 2023, which were as follows:
 
1. To deliver demonstrable and
ongoing social value via Coscos, its
tenants and associated activities and any associated land
transactions, to contribute to the Council’s aspirations for
social value in the community as set out in The Salford Way
strategies.
2. To secure the ongoing
community use of the City of Salford Community Stadium, in keeping
with the strategic rationale for its original construction and the
remaining funding conditions associated with infrastructure grant
funding initially received.
3. To secure Best Value in the
use of public money in any associated transactions involving the
City Council, including consideration for any ongoing financial or
other support provided to Salford Red Devils RLFC and any potential
subsidy control implications of this.
4. To secure the
Council’s long-term interests in any future redevelopment and
regeneration of the Coscos site and
adjacent development land.
5. To build on the positive
legacy of regeneration and social value delivered to date via the
Coscos joint venture.
6. To support Salford Red
Devils RLFC and retain them playing in the City of
Salford.
7. To recognise and celebrate
the 150 year history and cultural contribution to the City made by
Salford Red Devils RLFC and the Salford Red Devils Foundation, and
to help develop a city-wide rugby strategy building on this
heritage. This important contribution includes the physical and
mental health and wellbeing in the City.
8. To support and encourage the
longevity of Salford Red Devils RLFC, and a sustainable financial
plan for the Club, evidenced by a compelling business and
restructuring plan to be developed by the Club.
9. To support Salford Red
Devils RLFC to get into a long term financially sustainable
position within a time-limited period.
 
Options considered and rejected were: To not continue with the negotiations for acquisition
of the Stadium.  However, this may not
secure the ongoing community use of the City of Salford Community
Stadium, in keeping with the strategic rationale for its original
construction and the remaining funding conditions associated with
infrastructure grant funding initially received.
 
Assessment of Risk:
There is a potential for significant risk in respect of the overall
deal on the Stadium.  However, the
current decision acknowledges the need for further due diligence
and legal and financial advice.  That
advice should help to manage and mitigate any risk associated with
the ultimate decisions on this matter.
 
The
source of funding is:
The
financial impact of the acquisition of the stadium will be
dependent upon a number of factors still to be finalised including
the model of acquisition and lease arrangements. The financial
impact, and source of any associated funding, will be set out
within the financial advice included in a further report prior to a
final decision being made.
 
Legal Advice obtained: Full legal implications will be
provided prior to any final decision on acquisition once all
negotiations have been finalised and due diligence
undertaken.
 
Financial Advice obtained: Full
financial implications will be provided prior to any final decision
on acquisition once all negotiations have been finalised and due
diligence undertaken.
 
Procurement Advice obtained:
N/A
 
HR
Advice obtained: N/A
 
Climate Change Advice obtained: N/A
 
It is
noted that at the Cabinet Meeting the following members declared an
interest in this matter:

·        
Councillor Bill Hinds

·        
Councillor Tracy Kelly

·        
Councillor David Lancaster
 
The
following documents have been used to assist the decision
process:
The
relevant documents contain exempt or confidential information and
are not available for public inspection

Contact Officer:  Iolanda
Puzio                                 
Telephone number:
 
The appropriate scrutiny to
call-in the decision is the Growth and Prosperity Scrutiny
Panel         

 

 

Signed:
  Paul
Dennett                           
       
Dated:     26.07.23                                                 
        
             
City Mayor
 

For
Democratic Services use only

 

This decision was
published on  26.07.23                                           

This decision will
come in force at 4.00 p.m. on 02.08.23               
                              
unless it is called-in in
accordance with the Decision Making Process Rules.
 
This decision was called-in on
2 August 2023.
 
A meeting of the Growth &
Prosperity Scrutiny Panel was held on 23 August 2023 to consider
the call-in at which it was decided that no further action would be
taken, and the decision therefore came into effect on that
day.