Community Stadium cost to taxpayers – £1.6 million a year.

A response to a Freedom of Information request has made the ongoing costs of running the Community Stadium clearer.

The cost of the project has escalated over the years. The scheme, in 2011, was intended to be self funding. The stadium construction would have been paid for by the developer of the neighbouring retail centre. A £16 million budget was set aside as part of a section 106 agreement.

However, it became clear in February 2021 that the Council would in addition have to borrow £16.5 million to fund the completion of the project.

The Council has made what is known as a “minimum revenue provision” (MRP) in its revenue budget of around 7% to cover interest and principal repayments on the borrowing.

This represents an annual liability of around £1.2 million.

To this must be added the running costs.

So the cost to Council taxpayers will be around £1.6 million in total this year. Most of the costs will be ongoing. By way of comparison, the contract for running all York’s libraries is £2.4 million a year.

The FOI response makes it clear that the budget does not make any provision for compensatory payments to GLL to make up for lost income during the lockdown. In other parts of the country COVID grants and loans to leisure contractors have been controversial. click

Of course, GLL do have liabilities. The Yearsley swimming pool, as a stand alone facility, has always been subsidised. The pool continues to provide a unique facility for fitness swimmers and must be sustained.

But elsewhere in the City the organisation has been criticised for losing contact with the needs of local communities. High admission charges at Energise – which lies in the middle of one of the poorest York neighbourhoods – remain an barrier for some potential users.

The Council seems to have left itself with insufficient opportunities to attract additional income from the stadium complex to help offset its investment and borrowing costs.

The project should be subject to an independent review.

One thought on “Community Stadium cost to taxpayers – £1.6 million a year.

  1. Roger Pierce says:

    At the meeting of the Planning Committee that approved this James Alexander project, I suggested that the income from the sports users would not cover the interest charges and running costs leading to a reduction in council services elsewhere. I further suggested that the next step would be transfer the stadium to the football club and, much later, to buy the stadium back from them. The cause, I suggested, was long-term decline in attendances in lower divisions and the loss of income from bringing-on players for sale to higher divisions. It would have been so much better and less expensive to buy the old ground and to upgrade and conserve it as a heritage stadium. It had a character all of its own which was more attractive because of its rarity. James Alexander was, I believe, hoping to capture the supporters’ votes. The project was doomed by his ambition. Let’s hope that his involvement is properly attributed.

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