The council loan to help secure the future of a North Yorkshire football team has been approved but some councillors have made it clear they will not support any further cash being handed over.
The £150,000 for Scarborough Athletic FC has been unanimously approved by North Yorkshire Council (NYC).
It comes after its home ground was closed due to “serious and unexpected” structural issues.
Work is currently taking place to remedy the serious and significant structural defects which came to light ahead of planned resurfacing last year.
The club, which has been playing its home fixtures at Bridlington Town, requested a loan from NYC to support it financially over the next 12 months.
Cllr Simon Myers, executive member for culture, arts, and housing, said: “We are in the process of refurbishing the pitch used by SAFC, and it is hoped it will be ready by the start of the new season.
“We recognise it’s quite a peculiar set of circumstances, as SAFC is our tenant and this work has required them to play this season in Bridlington, which has caused a fall in revenue from ticket sales, hospitality, and so on.”
Speaking at a meeting of the council’s executive committee in Northallerton on Tuesday (February 17) he added: “We are very anxious that the club owned by its members continues to thrive and provide opportunities for young people in Scarborough through its programmes, and generally contribute to the well-being of the town.
“The proposal is for a loan of up to £150,000 to help the club over a difficult cash flow situation.
“We have every confidence that they will repay this and that it will only be used if they need it.”
The loan is set to be provided at commercial rates, however, if repayments are made in line with the loan agreement (both interest payments and the loan principal), the council said a grant would be provided to SAFC as a “contribution towards the interest payments”.
Concerns about the loan were raised by the leader of the Green and Independents group, Cllr Kevin Foster, who emphasised that the loan should be a “one-off” and that “if there are more problems, I don’t want to be back here in two years and saying it’s another £150,000”.
Cllr Myers replied that it was a “realistic” loan and that the council was “not making any commitment to fund the club long-term, it’s to help them get over this hump and it’s there if they need it”.
Officers added that the authority would be continuing its extensive discussion with the club, including about financial due diligence.
