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.

  • LNER Community Stadium York

“Make it York” tourist organisation heading for £1 million loss.

Faces closure within weeks unless bail out agree by York Council

A report to a York Council meetings shows its “Make it York” subsidiary could post a £1.2 million loss during the present financial year.

It means that the Directors of the, wholly Council owned, tourist business could be forced to wind up the organisation within the next few weeks.

The Council is being asked to step in and provide a substantial financial subsidy. The proposals include plans to;

  1. Waive the requirement for MIY to make a revenue return to the council in 20/21 in respect of trading activity across the city centre
  2. Defer the first two quarters rent due from MIY in 20/21 for use of premises on Museum Street and Silver Street offices
  3. A loan facility from the council of £300k to be accessed by MIY only if necessary
  4. provide a letter of guarantee to MIY with access to a maximum of £1m over the next 2 years should it be required.

MIY normally produces a net income to the Council of around £35,000. The company is responsible for tourist information services in the City, runs the Shambles market, organises special events like the Christmas Fair (cancelled this year) and promotes the City as a business destination.

Private sector membership of the organisation has collapsed in the wake of the coronavirus pandemic with the hospitality industry being one of the hardest hit. Redundancies at MIY are expected.

The immediate hit on the Councils budget will be the loss of income from the Shambles market. This will be in the order of £474,000. That figure may grow substantially if the organisations recovery plan is not successful during the next few years.

MIY is the second tourist organisation to seek taxpayers help. The Council agreed to provide a further £55,000 subsidy for Welcome to Yorkshire at its last meeting.

MIY balance sheet (click)