Council reveals finance model to back Everton stadium plan

Everton FC’s move to Bramley Moore Dock has taken a major step forward after Liverpool City Council backed the formation of a special purpose vehicle to lease the stadium from a funder and in turn sub-lease it to the club.

A report will be presented to the council’s cabinet on 31 March recommending the council progresses heads of terms to create the SPV.

The Bramley Moore Dock proposal is for a funder to acquire a 200-year head lease on the stadium land, which it will let for 40 years to the SPV. The SPV will be set up, owned and controlled by the council. The SPV will sub-let the stadium to Everton. The club will then have the option to acquire the stadium at the end of the 40-year period.

Earlier this week, Everton and Peel Land & Property agreed heads of terms on the Bramley Moore Dock site, which forms part of the £5bn Liverpool Waters scheme.

Under the proposed finance structure of the SPV the council will not provide any finance for the new stadium, which is anticipated to cost in excess of £300m. The club will be responsible for funding the stadium build.

Everton will pay an annual security fee to the council. The support provided to the club will not impact future borrowing needs and involves no financial outlay for the council.

The proposed stadium sits within the council’s plans to drive regeneration in the north Liverpool dock area, plans that include the recently launched masterplan for the Ten Streets area.

Mayor of Liverpool, Joe Anderson, said: “Creating this financial arrangement is a small step in a long journey for the club, but it is the first step. The proposed new stadium will be a landmark for the city’s spectacular north Liverpool waterfront and a powerful statement of intent for the club and the city of Liverpool that will resonate globally.

“From the city’s perspective, the stadium would complement and accelerate the regeneration plans already in place for north Liverpool, much like the way our partnership with Liverpool FC in the Anfield Project did for their stadium expansion.”

Everton chief executive Robert Elstone added: “We are delighted that we have been able to agree heads of terms with Peel, giving us control of the Bramley Moore Dock site and allowing us the time we need to complete the substantial further work required to be able to confirm the project’s viability.

“We can now move forward into the next phase with much greater confidence. It is vital we have clarity on cost and we have to recognise that the stadium will be significantly more expensive at Bramley Moore Dock. To get that certainty, and ensure the stadium is affordable, we need to confirm stadium design, capacity and configuration. And to do that, we need to talk to fans, partners and all stakeholders in the project. We’re committing to that consultation.

“We’re keen to stress not only the scale of the work ahead but also the remaining risks and uncertainties. Significant hurdles remain, not least the preparation and submission of a detailed planning application. Receipt of a successful planning approval at some point early next year will be the most significant step towards bringing the stadium to life.”

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Only Liverpool could take one of the most beautiful waterfronts in the world, throw a load of money at it and make it look worse. That’s some going.

By Loganberry

It’s Peel actually, they own the land.

By Man on bicycle

Fantastic news , great to see the North Docklands being brought back to life. this will have a knock on effect for that particular area that will compliment Liverpool Waters .
#jobs #investment #Business #waterfrontcity

By Scott

@Longanberry ?
Bore off- have you seen that area at the moment ?
wasteland scrapheap

By Scott

One of the most beautiful waterfronts in the world?! It’s this sort of exaggeration that makes the city an easy target for mickey takers. A new stadium there can’t fail to do anything but improve what is a desolate and frankly unsightly area.

By Vision expressed

Not true really. The quality of modern design its difficult to add much quality to existing skylines – by continuing to develop, it was always going to look worse.

By Rooney

Make it look worse? have you ever actually been there, really? or are you just one of these constantly cynical and unhappy humans?

Towers and development is what’s needed. It’s not a beautiful waterfront little more than a quarter of a mile north from the liver buildings. It’s disused derelict docks and warehousing and dilapidated buildings.

You sir may not be in reality.

By Jk

Was referring to the awful stuff surrounding the three graces. but can’t see how filling in a dock and building an average football stadium will make the place any better. Don’t forget that if LCC had got their way in the 80’s Albert Dock would’ve been filled in and turned into a car park. You have been warned…

By Loganberry

A bit of jealousy creeping in there, we know it’s going to look amazing and by the sound of it, so do you. @Loganberry

By John.

I was referring to the skyline, as I believe was the original commentator. Of course new development will make it nicer ‘on the ground’.

By Rooney

Brilliant News. Regenerate this whole area of Liverpool as I imagine there will be numerous spin off schemes such as retail and housing. @ Loganberry please have a drive down Regent Road and not let your kopite bitterness cloud your judgement. I suspect your lot will give us some laughs over the next few years!

By Sean

It’s never been closer, they’ve already secured investment on a number of towers and a new link road leading into the site leading to a new cruise liner terminal and Isle Of Man ferry terminal which sounds like they’re just waiting to be signed off.

Other plots have now come to light, and a large state of the art football stadium on their land now looks likely, and if all that comes off, our skyline is going to be second to none. All of that with a couple of ships in, viewed from a beach or promenade is going to take us to another level. It’s an exciting time although others may tell you otherwise, personally I’m buzzing.

By Scott

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