To receive apologies for absence.

Apologies for absence had been received from Councillors AJM Blackshaw, DW Greenow, EPJ Harvey, RL Mayo, AJW Powers, and A Seldon.  Apologies had also been received from Miss E Lowenstein, an education co-optee.

To receive details of members nominated to attend the meeting in place of a member of the committee.

The following substitutions were made, Councillors: JW Hope MBE for AJM Blackshaw; MAF Hubbard for EPJ Harvey; JA Hyde for RL Mayo; MD Lloyd-Hayes for AJW Powers; and JLV Kenyon for A Seldon.

To receive any declarations of interest by members.

Review of Lease Restructuring with Hereford United (1939) Ltd

Councillor JLV Kenyon, Non-Pecuniary, member of Hereford United Supporters’ Trust.

Councillor NP Nenadich, Non-Pecuniary, former director of Hereford United and current Chairman of United in the Community Trust.

To receive the minutes of the meetings held on 24 November 2014, 2 December 2014, and 14 January 2015.

The minutes of previous meetings were received.

RESOLVED:  That the minutes of the meetings held on 24 November 2014, 2 December 2014, and 14 January 2015 be approved as correct records.

To consider suggestions from members of the public on issues the committee could scrutinise in the future.

(There will be no discussion of the issue at the time when the matter is raised.  Consideration will be given to whether it should form part of the committee’s work programme when compared with other competing priorities.)

No suggestions from the public were received.

To note questions received from the public and the items to which they relate.

Note: To ensure that the committee has sufficient time to consider the items, it is not intended that verbal questions will be received from the public at the meeting.  Please submit questions in writing no later than 4.00pm on Thursday 12 February 2015 to bbaugh@herefordshire.gov.uk; these should be relevant to the contents of report.

It was noted that Supplement 1 to the agenda contained ten questions received in relation to the item ‘Review of Lease Restructuring with Hereford United (1939) Ltd’, together with officer responses to those questions considered relevant to the report.

To consider lessons learned from the lease restructuring with Hereford United (1939) Ltd.

The Chairman explained that the purpose of this item was to consider lessons learned and ways to improve any future leases for the benefit of citizens and football in the county.

The Director for Economy, Communities and Corporate gave an overview of the report and appendices, drawing attention to:

a.       Appendix 1 (agenda page 33) was a scoping document for the review, focusing on: what happened in the lease restructure in 2013/14 and to identify any lessons; and the relationship between Hereford United Football Club (1939) Ltd [HUFC] and Herefordshire Council and its predecessors.

b.       Appendix 2 (page 35) was a briefing report prepared by officers in response to the scoping document.

c.       Full copies of the leases had been published as background papers to this item on the council’s website.

d.       Appendix 3 comprised plans of the ground indicating the extent of the leases under the original Hereford City Council leases, 2014 leases, and proposed 2015 lease.

e.       The scoping document posed a number of key questions (page 34) and the briefing report responded to those questions in turn (pages 38 to 40).

f.       Paragraphs within the briefing report relating to current status (page 35) were read out.

g.       The briefing report (pages 36 to 38) summarised the key terms of the former Hereford City Council negotiated leases, the reasons for the move to new leases in 2014, and the key terms of the 2014 leases.

h.       The Director said that HUFC had been very open about its financial situation at the time of the lease restructuring.  He emphasised that the development agreement was not a way to generate funds for the club, it was a means for the club and the council jointly to generate income for investment into facilities for the benefit of football.

i.        The Director said that the leases had been proven to be robust and effective, as demonstrated by the fact that the council had received all of the monies owed to it and the ground had been secured.

j.        It was acknowledged that the inclusion of a clause allowing the council to consider the termination of the arrangements upon a change of ownership could have been considered.

k.       The Director said that the council had not had the capacity to lead on the development of the surplus land at that time.  He added that, with the benefit of hindsight, he would not recommend that development rights be assigned to tenants of the ground in the future.

Initial points made by some committee members included: a clause to enable the council to veto a change of ownership might have avoided some of the problems; supporters should be praised for their efforts; and previous experiences, particularly those of Hereford City Council, should have led the authority to seek further advice.

The Director reported that:

i.        The council had taken independent advice through the process.

ii.       The club had been transparent about its financial position and, mindful of this, the council had evaluated  ...  view the full minutes text for item 53.

To consider the committee’s work programme.

The committee’s work programme was received.

RESOLVED:  That the work programme be noted.

The next scheduled meeting is Tuesday 10 March 2015 at 10.00 am

Tuesday 10 March 2015 at 10.00 am