Bidders for U's old home

8:10pm Wednesday 9th July 2008

Comments (1)   Have your say »

DESPITE the problems of the property market, "a number of offers" have been received for Colchester United's old ground.

As the club prepares to move in to the new community stadium, Colchester Council is to discuss the sale of Layer Road tonight.

The cabinet is being asked to delegate to officers the power "to progress and complete the sale" of the ground, with refusal posing "a significant risk to the funding arrangements for the new community stadium".

The sale of the U's former ground for redevelopment into housing is expected to raise up to £3m towards the £16m cost of the new stadium.

A report from the authority's estates manager Gill Bellenie states that, without the sale proceeds, "the shortfall would have to be found from other CBC council sources".

"It is not a good time to be marketing any site, particularly one designated for residential use," her report admits.

"The sale could be delayed in order to wait for the property market to improve, but our marketing agent's research team advise that the property market is likely to stagnate or continue to decline for two years or more."

The council would be liable for any costs incurred if the sale were delayed, including annual estimates of £18,000 for security and £15,000 for empty property rates.

"Non-financial risks of retaining the empty premises, however well secured, would also remain," the report states.

The sale of the ground is being handled by estate agent Savills, with "a number of offers" received by a closing date for bids of June 20.

For commercial reasons, the council will not disclose the number or worth of the bids.