Sure is,I mean they could have given me the four million,rather than squander it.

Yeah that'll happen.

Invest, it's [iinvest[/i.





Anyway look at what the Council HAS wasted money on (not that this is wasting obviously): Big screen, Cog logo (WTF was all that about?!



), fountains near Britannia House (any point?).

They're finally learning how to spend money wisely.

Hmmmmmmmmmmmmm

views on Hull Truck Theatre

[iLabour councillor Phil Webster said the council was not a "cash cow" and the theatre [size=150"needed to start planning to stand on its own two feet."[/size He added: "The first port of call is always Hull City Council and I don't think that's right or fair on the people of the city."[/i

I hope it happens, i'd hate Rovers to lie on thier second SL application in a row.........

What a waste of money when this city is struggling financially and 6.5m for a north stand!!! Who did they get to price that up?

You may want to look over the finer points of the 'loan' again

Announced on the day that the government pulled the plug on regeneration work on Orchard Park.
Diana Johnson to ask the Council about possible funding .
What will Minns say? Sorry we are spending £6.5m for a stand at Craven Park. Unbelievable in these times of recession that this has been sanctioned by Minns and his cronies.

You was asked to use the stadium as well as it was built for ALL 3 teams but you refused so dont start bleating about it.

ITS A FRIGGING LOAN!!!

Nothing suprises me with Minns....this is the bloke who allows the council to spend £800 a MONTH on flowers for the Guildhall...WHY???????

So you take on a 6million loan as well as your over Debts...........tell the midget to give us a ring and we can give you tips on how to make a profit.

he's been trying but he just can't find a flower seller who charges more

Is it, though? From whom to whom? Prudential borrowing fund to the council? Which would mean that the council take on the asset title and debt, plus the risk of Rovers defaulting on interest and capital repayments. Or is that incorrect? I've asked the question on the Rovers board but no one seems able to articulate where the assets, liabilities, interest, rental and capital repayments belong.

So the council meeting £4.2million of the cost is a loan? Your Club`s debts are well documented and they then ask for a loan running into millions?
Maybe Hull FC can ask for a loan of millions for paying transfer fees for top players then?

As far as I understand it you have it right.
Putting it simply it has cost the council £0 and 0pence in capital.
The funds are released using the building and the rents due as security putting it very simply unless I have it wrong.
One thing I do know it that the funding for this has nothing to do with HCC's other financial problems and if this had not got built that would not change 1 iota.

Why can the council use the players as security?

Thanks for your reply, but that wasn't really the question. I might have misunderstood, but the council are borrowing £4m from a prudential borrowing fund, which as I understand it is usually from the Public Works Loan Board, ie central government. Someone is paying for that initial central government outlay. Who might that be? Who will own the stand, Rovers or the Council? The council are taking all the risk here of Rovers defaulting on repayments. Presumably if Rovers are repaying both interest and capital over 30 years that will be, say £200k a year, or a portion thereof if they are sharing with Hull training etc. At £200k additional cost each year, you'd assume the breakeven attendance figure will have had to rise to at least 11k.

whilst they do need their ground improving now is simply not the time in the current financial meltdown.when people are being made redundant cash would be better spent on regenerating local industry and benfitting ALL the city not just a few thousand rovers fans.and lets be honest here,they dont sell out their games that often anyway.
it should at least be put back til the current recession ends

sado

no suprises there you only have to look at where this council spend the money .most of it is spent in preston rd and east hull

The 'stand' aside the council has pulled the plug on all capital works to fund people moving from their own private homes into low cost private homes...mmmm...wish they paid for me to move!!!!!!!!!

gollom on humberside tonight said rovers will pay somewhere in the region of £55k a year ''rent'' for the new north stand over a period of 25 years.plus 2 other institutes will have some sort of building space/offices,which they will pay the same.at the end of the 25 year(?) period,around 9.3 million will have been paid from all 3 institutes(inc rovers).

Indeed. We only have the notorious Councillor Phil Webbo's assurances (on the notoriously hysterical message board of the Wail) that the council will use this prudential borrowing thing. Who are the "3 bodies" that will pay rent to cover the loan?

I'm guessing that the funding will be funded in a similar way to a "buy to let" second home. Ie, a person buys an additional property to the one in which he lives via a mortgage. He then lets it out to a tenant to live in, who pays rent, the danger being that the tenant defaults leaving the owner with a mortgage shortfall. Or, the interest rate on the loan increases to a level where the rental repayments are no longer sufficient to cover the debt.

This type of "risky" lending was one of the contributors to the recession and why the banks took such a massive loss.

Has anyone got a more reliable official council confirmation of the actual structuring of the funding?

As far as I undrstand it the return is only slightly higher than the origional outlay.
I could be wrong but I belive the stand is council owned until it is payed for.
The 55k amount plus partners money quoted by our little welsh friend only equates to £4.1mil so a zero interest amount seems about right (Although he said it was £9.4mil which I am struggling to understand as that would mean each party would be laying out £125.333.3p a year).
Can someone confirm my maths are correct?