You've seen the company house records for the developer? He has very little to his name. It wouldn't be simply a case of getting in a new developer if one failed. That would bring significant extra cost and time.
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Als antwoord op @CllrAnnMarieB @jonnycope
Jonny in business you don't lend to companies on these terms, with this little to back it up. I don't know why you expect Woking's council tax payers to accept risks that large banks won't touch — when we're about to hit an unemployment crisis.
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Als antwoord op @A_J_Kirby @CllrAnnMarieB
Will the banks not touch it? Any evidence for that? Terms seem pretty standard to me, what is unusual? This is how developments are secured. Any risk would be because of Goldev itself not the terms. But given the security and their history, risk seems low to me.
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I guess the proof of the pudding is that the Council provided the loan, not the banks. As for the risk? A major property development of flats next to a football stadium. Not what I would call a prime development and asset values likely to fall in the coming recession...
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Als antwoord op @media__type @jonnycope en
I'm a Woking fan and grew up in the town, but this doesn't sit easily with me. Council taxes are already exorbitant with declining levels of services, and yet the council is now significantly exposed to loans for a variety of commercial development schemes...
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Als antwoord op @media__type @jonnycope en
and this one in particular is for a major increase to the capacity of a stadium for a club that has no history of league football and rarely has seen crowds of more than 5,000 over the past 30 years. £250m is a huge sum of money for a development of this size...
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#Woking have a large catchment area so have big potential as a club. £250m is the level of the revolving facility so constitutes the maximum commitment. There are some potential issues on this proposal but I just don’t see the deal structure as one.1 antwoord 0 retweets 0 vind-ik-leuks -
Potential has been cited for 30 years and yet attendances rarely break 2,000 for a home game. Look at AFC Wimbledon. Bigger club & history of league football building an 11,000 capacity stadium and 600 homes, and there has been a gargantuan effort to fund that, not a council loan
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Als antwoord op @media__type @jonnycope en
Then finally, this: https://nao.org.uk/press-release/local-authority-investment-in-commercial-property/ … The NAO flagging the risks in Feb 2020 of councils playing the commercial property market - £6.6 billion spent on commercial property from 2016-17 to 2018-19 – 14.4 times more than in the preceding three years with SE England skew
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Als antwoord op @media__type @jonnycope en
I won't bang on, but I think there are serious questions to examine here in general on whether councils should be taking on such exposure on behalf of their residents. Woking is by no means the biggest borrower, but as the NAO notes, there are significant risks here
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Agree some LAs are very exposed and Woking undoubtedly has big borrowings but I would say it’s a plus it’s assets are in the borough whereas many have invested in speculation across the country.
Het laden lijkt wat langer te duren.
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