Warning that rising costs pose threat to stadium

The project to build the 6,000-seater stadium on the outskirts of York has been the focus of intense speculation after political opponents voiced fears that a business case behind the proposals is deeply flawed.

While members of the Labour-run administration are adamant the scheme remains on course, the council’s own project manager, Tim Atkins, has admitted there is a risk that vital rents from both York City Football Club and the York City Knights rugby league team would not be secured.

The two sports teams would share the venue, and York City FC has already written to the council to stress it would no longer be able to operate as a full-time professional outfit if the stadium does not become a reality.

But in a council report, Mr Atkins has revealed that if the clubs refuse to occupy the stadium to provide a realistic income the “affordability target of the project may become unachievable”.

He added: “Bidders at this stage believe they can still work within these parameters without further financial input from City of York Council and can therefore meet the affordability target for the project. The risk is critical impact rated, as, if we do not meet the affordability target for the project we cannot progress.”

The frank admission has sparked fresh criticism from the council’s Conservative members, who claimed there is a greater need for transparency surrounding the scheme.

The Tory group’s leader, Coun Ian Gillies, said: “These comments highlight my long-held criticism regarding the continued lack of a professional business plan. The football and rugby clubs both have financial issues, and their ability to fund a commercial rent should have been established at an early stage. The fact that affordability targets are only now being mentioned gives cause for concern that the Labour administration is now looking for a withdrawal strategy.”

Mr Atkins stressed yesterday the plans for the community stadium are “progressing well” and two bidders hoping to build and operate the venue are due to formally submit their detailed schemes in February next year.

He maintained the council is confident the project will remain on budget but admitted the risk over the clubs “cannot be closed off” until agreements are finalised and signed, and added: “Until that point this risk has to remain ‘live’.”

York Council approved a business case last year which was heralded as a landmark to ensure the stadium becomes a reality. The scheme has, however, provoked controversy as it hinges on nearly £15m of investment from private developers behind a contentious expansion of the Monks Cross retail park, which was given planning approval in May last year. The council would also provide £4m to finance the £19.2m stadium with a further £350,000 coming from York City FC alone.

The cabinet member for leisure, culture and tourism, Coun Sonja Crisp, said: “The project is well on track and nothing Coun Gillies can say now or in the future to try and derail it will stop it progressing.

“There is an element of risk in any major project but I’m pleased to see officers continue to use their expertise to identify and manage effectively any possible risks to this development so that we can move it forward with confidence.

“We’re at an exciting part of the procurement process for the York Community Stadium and with each step the project takes, it makes Conservative opposition all the more pointless.”

A York City Knights spokesman declined to comment yesterday, while no-one was available from York City FC.