Tuesday, 6 March 2012

Stadium - Inox will not be putting up any money

A few days ago, I posed some questions to the boss of Inox, the group behind the Stadium for Cornwall development proposals. In particular, I asked where the money would be coming from if not from Inox and I also asked that members of council and of the public should be able to judge for themselves by being able to read all the communications involved in the project to date.

I've now had the following reply from Rob Saltmarsh:

Dear Councillor Folkes,

Thank you for your email and apologies for the delay in coming back to you.

As stated in my letter, Inox remain fully committed to helping deliver the stadium project. I do believe that Inox could potentially secure third party private investment through the development vehicle, Cornwall Community Stadium Ltd (CCS Ltd) and this is our preferred funding option, albeit it will depend on the level of revenue and rental income that the stadium can generate.

The parties have discussed a range of options with the consultants for the stadium project and each has provided their thoughts on the matter, as to how the stadium may be funded. The consultants have in turn prepared a range of options and modelling scenarios based on this feedback (and indeed have suggested their own options). None of these options have been formally agreed in any shape or form.

Inox’s position remains that we do not intend to invest directly into the stadium. From the way the story has been reported I think perhaps the distinction between Inox facilitating third party funding and CCS Ltd delivering the stadium, may have been lost in the Part 2 Scrutiny paper (which, for your information, I have not seen).

Without sounding evasive, I feel it is reasonable to request a degree of confidentiality at this stage of the process, whilst the financial modelling and discussions remain ongoing with the partners of CCS Ltd and other third parties. I hope this will not be construed as sinister dealings behind closed doors, but is simply part of the preparation work that goes into any development project, before a deliverable option is found.

Many thanks for your interest and please don’t hesitate to contact me if you have further queries.

Regards,

Rob Saltmarsh

So it appears certain that Inox will not be investing in the stadium themselves, but they will be seeking third party investors.

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