Tagg's Trust AGM speech - 3 option

[IndoMike]

There is no proposal from us to sell SSP. There is no planning application for change of use. Therefore the land would be valued as a sports ground.

Ok. But I'm still confused. If we buy SJP for (say) 750k, what is the point if we can't sell it on as building land? So I return to my original question: where would the money come from to buy the land and build a stadium near the C & F? Relying on the possibility of future transfer fees received doesn't seem a very solid financial plan and no bank would lend us millions on that basis.
Imo we just don't have the capital to fund your project.
Another problem is access. I was last driving past the C & F about 3 years ago. Assuming nothing has changed it's a nice drive but a glorified country road. I just can't imagine it's suitable for a considerable amount of traffic coming from Exeter.

 

[rightwing]

Ok. But I'm still confused. If we buy SJP for (say) 750k, what is the point if we can't sell it on as building land? So I return to my original question: where would the money come from to buy the land and build a stadium near the C & F?

We, or more likely a developer would apply for change of use in a planning application. The enhanced value of that change of use ( plus the enhanced value from bringing the whole site together by buying the St. James Centre) would create the financing for the new stadium.

 

[IndoMike]

We, or more likely a developer would apply for change of use in a planning application. The enhanced value of that change of use ( plus the enhanced value from bringing the whole site together by buying the St. James Centre) would create the financing for the new stadium.

So the chronology of this is what?
1. We buy the land at a price commensurate with that of land reserved for sports activities
2. Then we ask for the land to have its certificate changed to building land
3. And then we sell to a builder at several times the value we paid for it.

Do you think the council would go along with that? Or have I missed something?

 

[Martin Lawrence]

I believe the club currently has the resources to finance the deal. Or it could do it from future transfer dealings.

All the money in the bank is committed to paying contracted players over the next few years. Not sure there would be enough wriggle room to purchase a building yet.

Julian Tagg and Keith Mason did say that the club is committed to purchasing the building. However this is likely to be reliant on another windfall. Fingers crossed.

 

[rightwing]

So the chronology of this is what?
1. We buy the land at a price commensurate with that of land reserved for sports activities
2. Then we ask for the land to have its certificate changed to building land
3. And then we sell to a builder at several times the value we paid for it.

Do you think the council would go along with that? Or have I missed something?

Many organisations make a lot of money out of change of use. However it's a gamble by them when they initially buy the land that the change of use would happen. I well remember when St. James Park was sold to Beezer Homes. Part of the deal was that we would try and persuade the Council to grant planning permission for several hundred houses on "white land" near the Met Office site i.e. land where there is anticipated housing development in circa 10 years time. If that had happened Beezers would have built us a stadium as part of the overall deal. However the Council refused to grant that planning permission so I persuaded them to use the threat of compulsory purchase to buy the ground back after Beezers wanted a much higher figure than what they paid for SJP.

The Council can only run with the conditions that apply at the time, so could very well go along with the sale at that lower value.

 

[IndoMike]

Many organisations make a lot of money out of change of use. However it's a gamble by them when they initially buy the land that the change of use would happen. I well remember when St. James Park was sold to Beezer Homes. Part of the deal was that we would try and persuade the Council to grant planning permission for several hundred houses on "white land" near the Met Office site i.e. land where there is anticipated housing development in circa 10 years time. If that had happened Beezers would have built us a stadium as part of the overall deal. However the Council refused to grant that planning permission so I persuaded them to use the threat of compulsory purchase to buy the ground back after Beezers wanted a much higher figure than what they paid for SJP.

The Council can only run with the conditions that apply at the time, so could very well go along with the sale at that lower value.

Well precisely , RW. So we're back to square one and the question is still relevant : how do we pay for the new stadium at the C & F? Too many "ifs and buts".
It's good to plan for the future but sometimes reality gets in the way.

 

[DB9]

All the money in the bank is committed to paying contracted players over the next few years. Not sure there would be enough wriggle room to purchase a building yet.

Julian Tagg and Keith Mason did say that the club is committed to purchasing the building. However this is likely to be reliant on another windfall. Fingers crossed.

So in reality the money is committed?

 

[Oldsmobile-88]

RW
Why would ECC sell the freehold ?

 

[WXF]

There is no proposal from us to sell SSP. There is no planning application for change of use. Therefore the land would be valued as a sports ground.

Quite. And we could include some kind of an anti-embarrassment clause so that should we sell the ground for a lot more money, the Council would get some of the profits, though of course they’d likely have to change the land use restriction on the site for the club to make lots of money, so would be in a strong position anyway. Owning the ground would put right one of the great wrongs of the past.

 

[WXF]

RW
Why would ECC sell the freehold ?

So a cash strapped local authority could spend money on other capital projects.