Salford council's bid to buy Salford Reds' AJ Bell stadium may be 'illegal'
Salford city council's plans to buy the AJ Bell stadium could be 'illegal', opposition councillors have alleged.
The Tory leader wants the two bosses to look into his claim that the city council would breach Section 5 of the Local Government and Housing Act 1989 if it was purchase Peel’s 50 per cent holding in the stadium. He told the Local Democracy Reporting Service : “It appears to us [the Conservatives] that the city mayor and/or the council is about to take steps or consider taking steps which would constitute maladministration.
“The report [to the cabinet, seen online on the city council’s website ahead of the meeting] also states that the asset value of the land may not currently clear all the debt,” said Coun Garrido. “If the city mayor and council were to proceed with this purchase it would need the injection of millions of pounds both to clear the debt and purchase the 50pc of the building owned by Peel.
“We do not believe that this is proper use of council taxpayers money nor should the council be adding to the debt already in existence indeed, we believe it would be a misuse of council funds whether from capital or borrowing.” Tomorrow’s cabinet meeting - which was due to consider the report - has been postponed because Mr Dennett is away at a MIPIM property conference in Cannes.
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