Agenda item

Cabinet Member: Finance

Forward Plan Ref: 2021/241

Contact: Steve Jorden, Corporate Director Commercial Development, Assets and Investment Tel: 07770 867896

Report by Corporate Director - Commercial Development, Assets and Investment (CA11).

The information in this case is exempt in that it falls within the following prescribed categories:

3. Information relating to the financial or business affairs of any particular person (including the authority holding that information)

and since it is considered that, in all the circumstances of the case, the public interest in maintaining the exemption outweighs the public interest in disclosing the information, in that a negotiation is ongoing and would prejudice the position of the authority in the process of that negotiation and the Council’s standing generally in relation to such matters in future, to the detriment of the Council’s ability properly to discharge its fiduciary and other duties as a public authority.

The annex containing exempt information under the above paragraph is attached.

Oxford United Football Club (OUFC) have approached OCC and requested that OCC transfer c.18 hectares (44.48 acres) of land for the development of a new 18,000 capacity football stadium with ancillary leisure and commercial facilities to include, hotel, retail, conference, and training/community grounds.

The Cabinet is RECOMMENDED to enter into negotiations as requested by Oxford United Football Club (OUFC) and with Oxfordshire County Council’s current tenants to enable the use of Oxfordshire County Council (OCC) owned land for the development of a new football stadium, subject to planning permission.

If Cabinet decides to proceed it is RECOMMENDED that

a)           Officers ensure that any proposal by OUFC is consistent with the Oxfordshire Fair Deal Alliance’s priorities, by achieving the following objectives for the use of the OCC’s land:

                   i.          maintain a green barrier between Oxford and Kidlington and improve access to nature and green spaces;

                  ii.          enhance facilities for local sports groups and on-going financial support;

                iii.          significantly improve the infrastructure connectivity in this location, improving public transport to reduce the need for car travel in so far as possible, and to improve sustainable transport through increased walking, cycling and rail use;

                iv.          develop local employment opportunities in Oxfordshire;

                  v.          increase education and innovation through the provision of a sports centre of excellence and facilities linked to elite sport, community sport, health and wellbeing;

                vi.          support OCC’s net zero carbon emissions pledge through high sustainable development;

b)           Officers enter negotiations and agree a deal that achieves community benefit, meet OCC’s aspirations and complies with The European Union (Future Relationship) Act 2020 and is in accordance with S.123 of the Local Government Act 1972.

c)           Cabinet agrees delegated authority to the Corporate Director, Oxfordshire County Council – Commercial Development, Assets and Investment, in consultation with the Portfolio Holder for Finance & Property, to agree financial terms and to instruct OCC Legal Services accordingly.

Cabinet had before it a proposal to enter into negotiations as requested by Oxford United Football Club (OUFC) and with Oxfordshire County Council’s current tenants to enable the use of Oxfordshire County Council (OCC) owned land for the development of a new football stadium, subject to planning permission.  Before considering the proposal, Cabinet heard from a number of speakers.

Councillor Andrew Gant, Wolvercote and Summertown, noted that there was a great deal of public interest in this proposal.  However, there had been no time for meaningful engagement and he asked Cabinet to delay a decision for perhaps two months to allow for full public engagement.  He noted that the proposals included a commitment that the project would be consistent with the Fair Deal Alliance’s priorities.

Councillor Gant asked that the Council work with the football club to ensure provision and promotion of Active Travel options to access the site.  He also suggested that they discuss key issues with Cherwell District Council as the planning authority and report back on their position.

There were aspects of the proposal that were welcome.  The site was more accessible than the current stadium and there were assurances that the facilities for local sports clubs would be safeguarded.

John Hill questioned whether Oxford United Football Club Limited should be considered suitable to undertake a multimillion development at Stratfield Brake.  If the building of a new United stadium by this Council was thought to be of sufficient priority over other pressing needs, then he believed that the only realistic option in the time scale suggested was to bring in a national commercial developer and for the Council to build the stadium in partnership.

The Council would then own the stadium and it was likely that it would have to meet some of the running costs itself.  Whether this was a good use of scare resources was a matter for debate.  He believed that the Council should not be too strongly focused on the end date of United’s lease as it was commonplace for football clubs to share grounds and this option was available if United decided to leave the Kassam stadium.

Councillor Ian Middleton, Kidlington South, spoke as a member of the County Council, District Council and two parish councils affected by the proposals.  There were varying views locally on the proposal and there had not been enough time to judge the overall public mood.

He was concerned that the proposed development was on Green Belt, which had already been eroded.  The land in question had been acquired by the Council to prevent sprawl.  There was already a lot of development in the Kidlington area.  He supported calls to provide more time for engagement and emphasised that the leasing structure at the site was complex involving multiple partners.

Councillor Nigel Simpson, Kirtlington and Kidlington North, stated that he was a season ticket holder with the club.  He could see the benefits from the sporting side but was also aware of residents’ concerns regarding traffic, parking and loss of green belt.  He believed that if it was done right it could be a great opportunity but it would have to be done right.

He was aware that the current rugby club facilities at the site, for example, needed a large injection of money to bring up to standard.  He emphasised that there were no designs in place yet and the question at this stage was whether the Council wanted to engage in talking to the club about options.

Councillor Calum Miller, Cabinet Member for Finance, thanked speakers for their contributions.  Oxford United Football Club approached the Council on this about a year ago and he thanked officers for their work so far on bringing this proposal.

He had received representations from a variety of interests since the proposal was announced last week.  There had also been an opportunity to brief Cherwell District Council’s Executive.  He had heard the advice against rushing a decision on this and the warnings around the complex financial structures of football clubs and the complex leasing structure at this site.

Councillor Miller noted the recurring themes of concern around the scale of the development, traffic and parking as well as replacement facilities for the clubs currently on the site.  He believed that the principles outlined to which the project would have to adhere were right.

The recommendation from officers was to authorise them to enter negotiations on a lease – it was not, as had been stated by some, a decision to grant a lease.  Nevertheless, he agreed that it was better to take time to conduct a public engagement exercise and come back to this issue at the March Cabinet meeting.  In recognition of the timeline involved, officers could continue exploratory discussions with OUFC and current tenants.

Cabinet Members supported this proposal on the basis that there were a lot of issues to consider and a holistic view of the use of the site was required.  Local communities should not feel that decisions were being thrown at them with undue haste.

Councillor Miller put the alternative proposal and it was agreed.

RESOLVED:

a)        Officers should hold a 4-week Public Engagement Exercise amongst residents and stakeholders to receive their feedback on the proposal and on the principles/objectives proposed to guide any future Oxfordshire County Council (OCC) negotiation with Oxford United Football Club (OUFC) as set out in paragraph 23;

b)        Officers should progress exploratory discussions with OUFC and with OCC's current tenants and, as appropriate, their sub-tenants regarding the proposal from OUFC to enable the use of OCC-owned land for the development of a new football stadium, subject to planning permission.

c)        Officers should report the outcomes of the public engagement exercise and of the exploratory discussions to Cabinet on 15 March 2022 with a recommendation on whether to commence formal negotiations and, if so, with which objectives.