Agenda item

Cabinet Member: Finance

Forward Plan Ref: 2023/173

Contact: Vic Kurzeja, Director of Property, vic.kurzeja@oxfordshire.gov.uk; Susannah Wintersgill, Director of Communications, Strategy and Insight, susannah.wintersgill@oxfordshire.gov.uk

Report by Chief Executive (CA7)  

The Cabinet is RECOMMENDED to

(a)            Note the feedback from the stakeholder engagement exercise undertaken in April and May 2023 (set out in Annex 2) and the public engagement exercise undertaken between 9 June and 23 July 2023 (set out in Annex 3).

(b)            Agree to proceed with a freehold sale of the land located to the east of Frieze Way / south of Kidlington roundabout known as the Triangle, based on the heads of terms which are being negotiated with Oxford United Football Club (OUFC).

The freehold sale of the land would be subject to:

·                 the receipt of planning consent and the production by OUFC of a net zero carbon plan, fully costed with clear timescales and outcomes, from design, construction and full operation of the stadium

·                 restrictive covenants to ensure that the land remains limited to use for stadium and sport purposes in perpetuity.

(c)             Agree that any capital receipt arising from a freehold sale would be used for the benefit of the local community.

(d)            Delegate authority to the Director of Finance, in consultation with the Cabinet Member for Finance and Property, to negotiate and agree the final heads of terms, which would be substantially in accordance with the details set out in Annex 5 (exempt).

(e)            Delegate authority to the Director of Finance, in consultation with the Head of Legal and Deputy Monitoring Officer, to conclude negotiations with the club and complete all necessary legal documentation for the sale.

(f)              Delegate authority to the Cabinet Member for Finance and Property, in consultation with the Director of Finance, to write to the club to outline requirements relating to the net zero carbon plan (set out in b above) and details of the restrictive covenants.

Final decision on whether Oxford United Football Club can acquire council-owned land at the Triangle to develop a new football stadium. Report on the feedback from the public engagement exercise undertaken in June and July 2023.

Cabinet had before it a report regarding the approach by Oxford United Football Club (OUFC) to the County Council (OCC) requesting that the Council transfer, by way of a 250-year lease, c.18 hectares (44.48 acres) of land, known as ‘land at Stratfield Brake, Kidlington’ 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.

Councillor Kieron Mallon, Chair of the Place Overview & Scrutiny Committee presented the Committee’s report and recommendations in these proposals.

The Chair then invited a number of speakers to address the Cabinet on the substantive report and recommendations.

Councillor Calum Miller, Cabinet Member for Finance, introduced the report.

The Chief Executive presented the report and referred to the various views that had been expressed on the proposals.

During discussion, members made the following points:-

·       The need to pay particular attention to whether freehold or leasehold terms be agreed in view of the financial and reputational risks to the Council

·       The need to lock in the covenant to ensure the ongoing use of the land for the purposes set out in the report

·       The importance of environmental considerations in the development of the new site

·       The roles of the Football Club and the land under consideration as Community assets

·       The social value of football in bringing generations and communities together

·       The need to take account of the large volume of correspondence and representations received on the proposals

·       The need to consider local traffic considerations

·       Concerns about the residual green belt and biodiversity of the adjoining land

·       The need to demonstrate the benefits to be realised from the proposals in line with the Council’s strategic priorities

Councillor Miller, Cabinet Member for Finance, thanked all those involved in the compilation of the report and the speakers who had attended the meeting to express their views.  He referred to the background to the proposals arising from the need for Oxford United to find an alternative site from 2026 and the extensive work on the technical proposals and community engagement that had been undertaken which had led to the recommendations presented to this meeting.

Members then considered the detailed recommendations in the report and, in particular, whether to proceed on the basis of entering a leasehold agreement with the Football Club. Following discussion, Cabinet agreed to make amendments to the recommendations in the report.

Councillor Miller moved and Councillor Bearder seconded the amended recommendations and they were approved.

RESOLVED, 8 voting in favour and 1 abstention to:-

(a)            Note the feedback from the stakeholder engagement exercise undertaken in April and May 2023 (set out in Annex 2) and the public engagement exercise undertaken between 9 June and 23 July 2023 (set out in Annex 3).

(b)           Accept the report from the Place Overview and Scrutiny Committee.

(c)            Agree to proceed with a leasehold disposal of the land located to the east of Frieze Way/south of Kidlington roundabout known as the Triangle, based on the heads of terms which are to be negotiated with Oxford United Football Club (OUFC).

The leasehold disposal would be subject to:

i.            The receipt of planning consent

ii.          The production by OUFC of a net zero carbon plan [fully costed with clear timescales and outcomes, from design, construction and full operation of the stadium]

iii.         A clear and detailed set of proposals that show how OUFC will meet the commitments made to date to meet the Council’s strategic priorities to the satisfaction of the Cabinet Member for Finance and Property

iv.         Obtaining a best value assessment of the leasehold disposal in accordance with the requirements of s123 Local Government Act 1972

v.          Restrictive covenants to ensure that the land remains limited to use for stadium and sports purposes for the term of the lease

(d)           Delegate authority to the Director of Finance, in consultation with the Chief Executive and the Cabinet Member for Finance and Property, to negotiate and agree the final heads of terms

(e)            Delegate authority to the Director of Finance, in consultation with the Head of Legal and Deputy Monitoring Officer, to conclude negotiations with the club and complete all necessary legal documentation for the leasehold disposal

(f)             Delegate authority to the Cabinet Member for Finance and Property, in consultation with the Director of Finance, to write to the club to outline requirements relating to the net zero carbon plan, a clear and detailed set of proposals and details of the restrictive covenants set out in (c) above.