by Gerry Warren

gwarren@thekmgroup.co.uk

The city council is expected to provide Kent County Cricket Club with another big loan – on top of the £4 million it has already lent.

The club says that delays in securing a hotel operator for the site are threatening the progress of the redevelopment and it is asking the local authority for a further £1.5 million.

It has come cap in hand to the council again because of the authority’s ability to borrow money at preferential rates – the benefits of which can be passed on to the club.

The request will be considered at a special meeting of the council’s executive on Thursday (January 5), where a report by the finance officer and chief executive will recommend approval of the loan.

The redevelopment includes improved facilities for players and spectators, a conference centre, bigger physiotherapy unit, shops, and a hotel and fitness centre.

The first phase of the work has been funded largely from the proceeds of sales of land for housing and the first loan by the city council.

But the club says that the economic downturn has resulted in it not yet being able to sell the designated site to a hotel developer.

So it is seeking a further loan of £1.5 million for a maximum of three years, or sooner if a sale is completed.

In the report to the executive, council finance officer Ian Cooke says there will be no cost to the council unless there is a default.

He concludes: "The council has supported the first phase of the redevelopment work and it is essential for the club to undertake the next phase as that contains some of the facilities which will provide year-round business.

"Loan finance from the council is more effective for the club than other options and, given recent years’ accounts, the saving in debt interest will be helpful to the club."

Council spokesman Rob Davies told the Gazette: "The council is proud that the base of the county’s cricket club is here in the city and is very keen to see it develop and be successful, both on and off the field.

"The club provides significant sporting, cultural and wellbeing benefits to the district, and the council wants to see those continue.

"It is important to stress that this is a loan that will be repaid, not a grant.

"And while the report makes it clear that there is a risk in providing this loan, we believe there are enough safeguards in place to recommend going ahead with it to help cement the club’s position in the city for years to come."

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