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Executive to consider stadium business case

Andrew Gilbert

Andrew Gilbert

Posted on 15 March 2019

Work to build the new stadium in Workington will move a step closer next week, if Allerdale Borough Council’s Executive agree the detailed business case.

Executive members are due to consider the report which recommends how the stadium will be procured and financed, as well as details on how it will be managed in future years. 


The Council was approached by Workington Town Rugby League club and Workington Reds football club, to investigate the possibility of building a new stadium for them both. 


The plans include an 8,000 capacity stadium on the current site of Borough Park, hospitality and conference facilities, and a 3G training pitch on nearby land. 


Having considered a number of options, it is recommended that the council uses an investor/developer route to build the stadium. This means that the council will use a developer to both finance and build the stadium, with income for the developer guaranteed by the council with income from all parties. This developer option is possible because the plans include space for NHS facilities and office space for 300 Sellafield staff on long-term leases.   
By going down this model, the council avoids having to borrow any money to pay for the stadium. It would also allow the council to use the £6m which had already been set aside in the capital budget for the project to go towards other key council initiatives instead, such as the Maryport regeneration scheme, bringing empty homes back into use, or to finance the council’s commercial ambitions. If a decision is taken not to borrow the £6m, then this could result in a saving of over £400,000 a year in revenue costs from 2021/22.  


The investor/developer model also means the council can utilise the skills and experience of the developer which it does not have inhouse. 


Whilst the council would need to pay for fixtures and fittings in year one, this approach also means the stadium should achieve a break-even position.  


This all means there would be no increase in Council Tax required to fund the stadium over its lifetime. 


Whilst the new stadium would be home to the clubs, it would also be a facility for the community to enjoy. The training pitch will be available for groups to use, and there are plans in the future to completely redevelop the riverside area and open it up for recreational use.  


The report therefore highlights many of the health benefits associated with the stadium. It is, for instance, expected that the number of young people taking up sport and joining the clubs’ as youth members will increase. As 30% of children do less than 30 minutes of sport activity a day, it is hoped the stadium would go a long way to help address health issues, such as obesity, in the area. The stadium will also encourage more adults to take up sport and, with NHS facilities onsite, see the value of activity in helping recover from injury and illness. The new stadium therefore builds upon the success of the nearby leisure centre by improving the health and wellbeing of the residents of Allerdale. 


The stadium is also seen as important in giving local businesses a boost by bringing people into the town centre, and making the area more attractive to invest, and will build upon the recent approval of a hotel, café and restaurant close to the site. It is estimated that over 350 jobs will be created during its construction, and 400 directly employed on the site once built.  


The facility is also estimated to bring more than £2.9m into the local economy every year. As it will also be the home for festivals and events it will give local businesses a boost by attracting visitors to the area. Estimates suggest that a 2% increase in visitor numbers as a result of the stadium, would bring an extra £9.5m into the local economy.   


The stadium plans are also key to the council’s successful bid to be a host for Rugby League World Cup games in 2021, which will give an additional boost to the economy, promote sport in the area as well as leave a lasting legacy.   


Councillors are also being asked to agree the future governance arrangements of the company running the stadium. It is proposed that the council would retain a controlling interest in the company, with the clubs also taking an active role in the joint management board. However, it is proposed that final details of how the company will operate would be agreed once the procurement decision on the selection of the developer is made. 

Due to ecological constraints, any required piling work can only happen between January and February 2020. However, work to demolish Borough Park would begin before this once agreement on interim arrangements between the two clubs is complete. 


Over the past few months, plans have been developed which include an assessment of suitable sites and the appointment of consultants to develop the designs. A planning application is currently being considered and is due to go to the Development Panel soon.  


The Executive meet at 10am on Friday 22nd March 2019, in the Council Chamber at Allerdale House in Workington. The full report can be found on the council’s website, www.allerdale.gov.uk and following the links to the council’s meetings.