New arena and coastal park plans win council approval
PLANS for a new indoor arena in Swansea has been greenlit after the council’s cabinet committed £110m to the scheme.
The main contractor is on site this week for the project which will also deliver a coastal park and – across the other side of Oystermouth Road – 36 apartments, 15 retail units and a multi-storey car park.
Leader of Swansea Council Rob Stewart said: “I think this is the most significant day that this or any other council has faced over the last 20 years in terms of investment and saving the city.
“We are really at a point now that if we don’t do something significant then Swansea’s future looks extremely uncertain.”
Labour cabinet members praised the concept and detail of the project, known as Swansea Central phase one.
“The full (cabinet) papers provide a very strong case to proceed,” said Jennifer Raynor, cabinet member for education improvement, learning and skills.
Delivering Swansea Central phase will cost £134.8m, and cabinet has previously earmarked the rest of the funding required. The council will claw back just under £23m from the City Deal for the region, and nearly £5m from the sale of the apartments. Further grants could also reduce the council’s contribution.
While the sums involved seemed large, said Ms Raynor, they were less than the council’s current school rebuilding programme and also provided ways of generating income.
Councillor David Hopkins said: “In 28 years of being a councillor I have never been so excited about a project as this.
“If we don’t go ahead with this project, we will never grow, we will never be a regional centre.”
Liberal Democrat leader Chris Holley welcomed several aspects of Swansea Central phase one while delivering the findings of a scrutiny group.
He said answers given at a scrutiny meeting by council leader Mr Stewart and senior officers “were quite reassuring”.
“The scrutiny board were quite pleased that the development will be going ahead,” said Cllr Holley.
Mr Holley added: “But we do have reservations about the funding and what the long-term consequences of this are going to be.”
The Labour administration has set aside money to cover the first six years of repayment costs, but beyond that, £7m per year will be required for around 40 years to finance Swansea Central phase one.
The current estimate is that car parking income, rent from the retail units and the arena will bring in £1.7m per year but this could rise and, according to Mr Stewart, end up offsetting most or even all of the million needed.
But maintenance costs of just under £1m per year will also need to be factored in.
Mr Stewart said that £120m of existing borrowing has been paid back since 2012, and that money for Swansea Central phase one had actually been borrowed from the Public Works Loan Boards last year – prior to the Treasury raising interest rates.
The Labour leader said the steps taken to cover borrowing costs for the first six years would mean no impact on core services or council tax.
Swansea Central phase one is estimated to deliver a £17m annual boost to the city’s economy, provide construction work for local firms, create 600 long-term jobs, pave the way for a second round of city centre development – called Swansea Central phase two – and encourage further private sector investment.
Contractor Buckingham Group is on site this week.