Agenda item

B Report of the Director of Finance and Support

1.      This Council is supported in entering into a development agreement with Homes and Communities Agency (HCA), Northampton Town Football Club Limited (NTFC) and a development partner to facilitate the development of land at Sixfields for a scheme involving uses that will

(a)   not conflict with preserving and enhancing the commercial vitality of the Town Centre,

(b)   will ensure that the stadium itself continues to be used for Association Football and other uses described under the existing Lease referred to at 3.1.1 and

(c)   will ensure that replacement athletics facilities are built to UK Athletics Competition Standard for track and field, within Northampton prior to any redevelopment of the existing facilities.

2.      The principle is supported that this Council should agree, under the terms of a development agreement with the parties referred to at 1 above, to the transfer of its freehold interest in part (but not the whole) of the Sixfields Stadium, prior to physical development taking place on that land.  However, the transfer of any part should only occur in circumstances where the Council is first satisfied that there are sufficient legal safeguards and financial guarantees to protect the Council’s position.

3.      The principle is supported that the investment returns to each party to the agreement should be based on their respective capital contribution to the scheme.  The contribution by NBC and HCA will be in the form of freehold land and it is accepted that the actual value of the land will be determined by reference to the overall profitability of the development scheme.

4.      The authority to approve the detailed terms of a development agreement consistent with the principles set out in this report is delegated to the Director of Finance and Support, acting in consultation with the Portfolio Holder for Finance.

5.      Support is given in principle, for NTFC’s aspirations to improve the facilities at Sixfields Community Stadium and the requests of NTFC are noted for this Council to invest, in the retained Stadium complex, any value generated by the transfer of Council owned land.  However, whilst the Cabinet will consider such request it nevertheless resolves not to fetter its discretion as to how it might spend any proceeds arising from its participation in any development agreement.

6.      The Rugby and Northampton Athletics Club is added to the list of consultees as set out in paragraph 4.4 of the report.

Councillor Pam Varnsverry addressed Cabinet and confirmed she was the Councillor for the ward and was in support of the Club and the proposals for the stadium.  She had been advised the account for the 50% of the Rugby and Northampton Athletics Club’s rent to be set aside for maintenance was still in the process of being set up but she was optimistic that things could only improve.

Councillors Clarke left the meeting after having declared an interest.

Councillor Perkins as Portfolio Holder for Finance and Support presented the report to Cabinet.  He was seeking Cabinet’s authority to proceed with the details negotiation of a development agreement affecting land within the Council’s freehold ownership at Sixfields Stadium Complex presently let to Northampton Town Football Club Limited (NTFC) in combination with other land owned by homes and Communities Agency (HCA) and to agree, in principle, the Council’s approach to obtaining value for its property interests.  He confirmed that this was not an agreement but a framework for a development of an agreement.  The framework would be transparent so the public would know how the Council dealt with negotiations.

Councillor Church welcomed the focus on the Athletic Club facility and confirmed that it was also about improving the town as a whole.  He did agree that the Club should be referred to in the list of consultees so when the project moves forward they would be satisfied that they were receiving the correct facilities.  Therefore he proposed that this be included as a condition.

Councillor PD Varnsverry appreciated that this was the start of the process but noted that this was a great improvement and seconded the proposal.

Councillor B Hoare congratulated the Club for looking after the whole age range for sports and noted there was a great desire for Northampton to move forward.  The economic climate factored into what could be delivered and there was a number of people who wanted the same outcome and move forward with some hope.

Councillor Woods noted the recommendation in the report that the Town Centre area needed to be improved but so did the Sixfields area and this was a good opportunity to do so.  The Football Club had advised of their aspirations for a better stadium and the replacement of athletics facilities and noted that they had an excellent school development program and welcomed the paper.

RESOLVED

1.      That Cabinet supports this Council entering into a development agreement with Homes and Communities Agency (HCA), Northampton Town Football Club Limited (NTFC) and a development partner to facilitate the development of land at Sixfields for a scheme involving uses that will

(a)   not conflict with preserving and enhancing the commercial vitality of the Town Centre,

(b)   ensure that the stadium itself continues to be used for Association Football and other uses described under the existing Lease referred to at 3.1.1 and

(c)   ensure that replacement athletics facilities are built to UK Athletics Competition Standard for track and field, within Northampton prior to any redevelopment of the existing facilities.

2.      That Cabinet supports the principle that this Council should agree, under the terms of a development agreement with the parties referred to at 2.1 above, to the transfer of its freehold interest in part (but not the whole) of the Sixfields Stadium, prior to physical development taking place on that land.  However, the transfer of any part should only occur in circumstances where the Council is first satisfied that there are sufficient legal safeguards and financial guarantees to protect the Council’s position.

3.      That Cabinet supports the principle that the investment returns to each party to the agreement should be based on their respective capital contribution to the scheme.  The contribution by NBC and HCA will be in the form of freehold land and it is accepted that the actual value of the land will be determined by reference to the overall profitability of the development scheme.

4.      That Cabinet delegates to the Director of Finance and Support, acting in consultation with the Portfolio Holder for Finance, authority to approve the detailed terms of a development agreement consistent with the principles set out in this report.

5.      That Cabinet supports in principle, NTFC’s aspirations to improve the facilities at Sixfields Community Stadium and Cabinet notes the requests of NTFC for this Council to invest, in the retained Stadium complex, any value generated by the transfer of Council owned land.  However, whilst the Cabinet will consider such request it nevertheless resolves not to fetter its discretion as to how it might spend any proceeds arising from its participation in any development agreement.

6.      That Cabinet will consult with the Rugby and Northampton Athletics Club during this process.