What next for plans to give Cardiff Arms Park a facelift?
It is one of the most historic grounds in world rugby, but what is happening with plans to redevelop Cardiff Arms Park?
Well, professional rugby region the Cardiff Blues, which lease the ground from Cardiff Athletic Club (CAC), want to enter into a new 150year lease with the rights to redevelop the prime site in the centre of Cardiff – providing that rugby remains at its heart with an 11,000-seater stadium.
The current lease expires in 2022, so both parties are keen to get a new lease agreed.
CAC is made up of the sporting sections of rugby, hockey, bowls and cricket. Its rugby section, Cardiff RFC, also plays at the ground with the Blues.
What do Cardiff Blues want to do?
Under chief executive Richard Holland, they have been looking at a number of development options for the Arms Park, which could be expanded if a deal can be done to bring in the site of the current Holiday Inn.
Until they get a new lease agreed with landlord CAC, they cannot get into more detailed business cases, for what are effectively two options:
An up to £150m indoor arena for 15,000 spectators, with flooring technology that would see a rugby pitch installed for games, but replaced for events such as concerts and conferences;
A new stadium built at 90 degrees to the existing and ageing Arms Park arena at a cost of potentially up to £25m – funded by commercial developments around it, including residential and office schemes.
But any deal will need CAC membership backing. While there have been constructive discussions between the Blues and the CAC management committee, any deal would be subject to approval at an extraordinary general meeting (EGM) of CAC, which the Blues had hoped could have been held before the end of the rugby season in May.
There are effectively four elements to a deal, which would need to signed off by both parties, before it can go to an EGM.
Members are expected to be given in-depth details on the terms of the proposed new lease, as well as the Blues providing information of their redevelopment options, a month before any EGM.
So, with the summer holidays close upon us, any EGM could now drift into September.
What needs to be agreed can be broken down into four elements: An option. This is effectively giving the Blues three years to bring forward their development plans to trigger a new lease.
It is understood that the Blues would pay £85,000 a year for this option to CAC. New ground lease. Once that option is exercised, the Blues would enter into a new 150year lease with CAC.
The deal would see the Blues paying a one-off instalment of £8m to CAC, which would then have to agree a distribution model to its four sections, of which rugby is by far the largest in terms of members.
The sections would have to use the