Decision details

To approve a loan of £450,000 to facilitate further development of the water-based pitch at the St Margaret’s Pastures site, alongside a S106 funded grant of £350,000.

1.    Approval of an annuity loan of £450k to Leicester Hockey Club repayable over a 25 year period at 5% interest.

2.    Approval of the making of the S106 Grant Agreement and the Loan Agreement as detailed in paragraph 3.12 of the report.

3.    Note: existing delegated powers will be used to vary the existing lease and deal with the agreed surrender and new lease.

4.    Add the total £800k scheme to the capital programme.

Mitigates risks for the Authority linked to alternative bank loan and lease options.

Provides a number of benefits including inclusivity for Leicester children in sport.

The below options have been considered in which have culminated in the Executive Decision recommended:

Option 1 (recommended Option). Agree the loan and maintain ownership and control of the improved asset. Secures £350k S106 funding for hockey facilities at St Margaret’s Pastures.

Option 2. Decline the loan and allow a 99 year lease with a bank loan that places onerous risks on the Council.

Option 3. Abandon the Skate Park project at this site with abortive costs. Risk the future of inclusion of children in providing improved hockey facilities in the City. Lose £350k S106 funding.