Contracts for the sale of commercial elements also haven’t been signed.
The report says, “Until legal agreements can be concluded, a risk remains that the Investment Fund could look to alter the terms of the proposed deal. This could include a reappraisal and increase or reduction in the Capital Land Receipt to the Council. Should the Capital Land Receipt reduce from that set out in the March 2016 this would have significant effects to the overall financial position of the Project”
Commenting on the need to appoint a new builder the report says, “Council instructions to GLL have been very clear in that any revised Construction Cost from their Building Contractor re-procurement must meet the existing approved March 2016 budget. However, until GLL have received final revised Building Contractor cost submissions there remains a risk that the Construction Cost could differ from that presented in the March 2016 Executive Report”.
Despite these issues, the Council says, “Stadium and New Leisure Facility built and operational by late 2018”.
The report does not say whether – in the light of the continuing high risk level of the project – a contingency plan has now been developed which might still see some sort of investment in a new stadium undertaken.
Around £12 million, of the original Section 106 developer contributions to the stadium project,are still held by the Council.