Coventry City Council moves to secure future of Ricoh Arena
Tuesday 15 January 2013
Coventry councillors have voted unanimously to support a new loan arrangement for Arena Coventry Limited at a meeting of Full Council today (Tuesday 15 January).
The meeting - held in private because of commercial confidentiality - saw councillors support a proposal for the Council to intervene to safeguard the Ricoh Arena - a publicly funded asset that has helped to drive growth and create jobs since it first opened.
The move means the Council is effectively becoming banker to ACL, so that it can pay off its current loan arrangements with its existing bank. There is no net cost to the Council or Coventry taxpayers; the move will provide a modest surplus for the Council.
As a result, the interest that ACL now pays on its loan will go to the Council, some of it helping to support jobs and services, the remainder helping to service the loan rather than to the bank.
Cllr John Mutton, Leader of Coventry City Council said: "We have taken a decision that will benefit city taxpayers and secure the future of one of our most important and best loved public assets that brings great benefits to Coventry people. Not many councils would have done what we've done, but I've always believed that councils can - and should - be prepared to take bold and radical decisions when they are the right thing to do.
"It's up to ACL and the club now to find a way forward on the rent issue; we know that ACL is totally committed to doing this, and we hope the club's owners will be committed to doing so, too."
Cllr Lynnette Kelly, Cabinet Member for City Development said; "The Council is playing a facilitating role, assisting Arena Coventry Ltd to stabilise and prosper in the future, but without subsidising either ACL or CCFC from public funds, which would be irresponsible and inappropriate in the current economic climate."
No cash is being put into CCFC by the Council as this would be unlawful and inappropriate.
