In the last progress report in February we explained that the growing impact of the credit crunch on housing and financial markets was impacting on the plans to build the new Brentford Community Stadium at Lionel Road and causing the project to slow down.
According to Brentford FC’s project manager, Brian Burgess, the target to build the stadium by July 2012 was no longer a realistic completion date, because the intention was to pay for the stadium with profits from selling new houses and flats to be built on Griffin Park, Lionel Road and the site of the existing Fountains Leisure Centre.
He also said that the stadium design was under review to see if the cost of meeting the club’s requirements could be reduced.
In parallel with this the club’s development partner, Barratt Homes, is reviewing the economic viability of the project in the current climate.
The current situation can be summarised as follows:
· The project to create a new stadium for Brentford Football Club, a leisure centre, hotel and community hub (including a health centre), together with over 1,200 new homes on three sites in Brentford offers one of the most exciting regeneration opportunities in London.
· The three partners: Brentford Football Club, Hounslow Council and Barratt Homes, remain committed to delivering this exciting project.
· The current economic downturn and severe drop in residential values has led to an economic environment wholly different from when the project was first conceived some years ago.
· Given the adverse economic environment, Barratt Homes are reviewing the scheme. All costs, revenues and economic assumptions are being reviewed in the light of the changing market conditions.
· This review also allows Barratt and Brentford Football Club to take on board early discussions with Council Officers and resident groups.
· Once this review has been completed, and it is clear in what form the scheme can progress, Barratt Homes and Brentford Football Club will liaise with Hounslow Council and other relevant consultees prior to submitting a planning application.
Brian Burgess has confirmed that the timetable for a planning application is now uncertain. “Until we can settle on a scheme that is viable for all parties we cannot commit to submitting a planning application” said Burgess.
“Its going to be a balancing act; on one hand the cheaper the stadium the quicker we might be able to get it funded and built, but on the other hand there is no point in the football club moving unless the new stadium gives bigger and better facilities which generate more revenue. Promotion to League 1 shows that the club is ambitious and we will need facilities to match that. Achieving a sustainable business plan for the club is our main objective and this is what we are looking at in detail.”
Details of the regular meetings of the Lionel Road Liaison Group, which includes local stakeholders, can be found on the project website www.brentfordcommunitystadium.com.
Background information
In order to create specific responsibility for this project the Brentford FC Ltd Board has set up a subsidiary company called Brentford FC (Lionel Road) Ltd, which has two shareholders:
· Brentford FC Ltd with a 99% interest
· Brentford Football Community Society Ltd (Bees United) with 1 ‘golden’ share, giving certain veto rights over the actions of Brentford FC (Lionel Road) Limited. In particular this golden share, which represents 1% of the issued share capital, gives Bees United the right to a veto over any issue or transfer of shares, the disposal of assets over a material level, the use of land for any purpose other than that of a sports stadium, the charging of assets, the implementation of any liquidation proceedings and the payment of any dividends. In addition Bees United have the right to appoint a minimum of one director to the board of Brentford FC (Lionel Road) Limited.
The directors of the company are Greg Dyke (Chairman), Brian Burgess, Chris Gammon (Company Secretary), Mike Power and Donald Kerr.
