Queens Dock Project

[Sharon]

http://www.qd2.co.uk

The first major QD2 development will be the creation of a purpose built arena. The focus is firmly on providing a national entertainment arena for Scotland with superb sightlines and excellent acoustics, seating up to 12,500 and with the flexibility to create numerous seating configurations for concerts, ice shows, sporting and other spectator events.

The Arena design calls for a mixture of fixed tiered seats and flexible demountable seating systems so that a wide range of events can be accommodated: from the major international touring artists such as the Rolling Stones to children's events like Thomas the Tank Engine; and from ice shows to the majority of sporting events.

The Arena will not have a fixed stage. An event 'pad' under a steel grid system will allow shows to be configured to maximise the presentation to the audience.

Stages, when required, will be erected to the performers' requirements and the grid will accommodate the most ambitious sound and lighting rigs whilst keeping sightlines clear. When a more intimate atmosphere is required, capacity can be reduced without sacrificing either the ambience or the closeness of the audience to the performers.

The Arena will have full air-conditioning. A wide range of cafes, bars and restaurants will be created throughout the Arena to keep queuing times to a minimum while providing opportunities for visitors to eat before or after performances. SECC's objective is to create an outstanding visitor experience before, during and after each event.

Scotland's National Arena is being designed to become a world beating entertainment venue and making SECC unique in Europe by having a purpose built exhibition centre, conference centre and arena all on one site.

http://www.qd2.co.uk/images/PDFs/SECC%20KEY%20REFERENCE%20PLAN%20.pdf

[Sharon]

QD2 Facts and Figures (13/10/03)


QD2 FACTS AND FIGURES

- QD2 Development cost: £350 million

- Cost of Arena: £50 million + £10 million towards cost of enabling work

- Projected capital receipts: £60 million

- Economic impact of arena: £21 million

- Total economic impact of SECC: £105 million per annum

- Number of people attending concerts and events since SECC opened: 14 million

- Total jobs sustained by QD2: 806

- Total jobs sustained by entire SECC: 4306

- The arena will not have a fixed stage, instead there will be a flexible entertainment pad of 1,500 sqm.

- Construction begins in 2005

- Projected opening of Arena: 2007



TIMELINE:



2003

- Design study completed

- Apply for loaning approval of master plan

- Procure design team



2004

- Appoint design team

- Secure funding

- Apply for full planning consent

- Construction starts on 1st car park

- Site preparation works starts



2005 to 2006

- Car park complete

- Construction of arena



2007

- Arena opens

[brickwall]

"However, a further £131m could be pumped into the local economy if the proposed National Music Arena, a key part of the 2014 Commonwealth Games bid, secures its funding"

http://www.theherald.co.uk/news/news/display.var.1243231.0.0.php

Sorry to dredge up an ancient post, but does anyone have some inside knowledge on how things are going?

[Mori]

Should this no be in the Urban Developments section shazy?

http://www.skyscrapercity.com/showthread.php?t=252928

[Mori]

latest masterplan for the Arena.

[Sharon]

Looks a wee bit like a badly risen cake - the sort of thing my homebaking would produce should i ever do such a thing... that, or the wee space men from the smash adverts....

I look forward to the opening in 2007!

[Mori]

Looks a wee bit like a badly risen cake - the sort of thing my homebaking would produce should i ever do such a thing... that, or the wee space men from the smash adverts....

I look forward to the opening in 2007!

A subsided muffin i called it when i 1st seen the plans.

2009 maybe if it gets all the funding it needs, lets hope...should be a briliant new addition to the Glasgow Skyline.

I always thought of Gort comming out of it rather than the smash aliens.
KLATU BARADA NIKTU

[brickwall]

Is it something to do with the bid for the games that put things on further ice? Oportunity of more funding?
Enterprise companies seem to be footing a fair bit of cash and the cooncil a bit more. Anyway, we all know not to hold our breath until a spade goes in the ground.

[crusty_bint]

The new arena was to be part funded by the company (MGM?) who proposed the super casino at the SECC, now that it has gone to Manchester other funded sources need to be found. I wouldn't say that this casts too much doubt over the project as it was a scenario I'm sure the SECC, GCC and SEG took into when arranging the setting up the funding package... but the you do never know.

As for the design, I quite like it, it will act as a good counterpoint to the rest of the odd objects down that way i.e. Armadillo, Science Centre, BBC, Finnieston Crane and Rotunda. Really the only bad thing I have to say about the proposal is that they're keeping the elevated walkway, which I don't really understand - how much would it cost to replace/remedy?

[Mori]

http://www.theherald.co.uk/news/news/display.var.1300802.0.0.php

National Arena wins final £25m funding

The construction of the Scottish National Arena is set to go ahead after Scottish Enterprise Glasgow confirmed it had put the final piece of funding in place.

The organisation is to contribute £25m to the 12,500-seat arena, which will sustain 1400 jobs and play a major part in the regeneration of the Clyde waterfront.

It is also hoped the project will significantly strengthen Glasgow's bid to host the Commonwealth Games in 2014, and play a major part in attracting tourists to the city.

[Mori]

Latest plan for the SECC site.

[Mori]

Item 10 27th May 2010 ( 8 Pages)

THE SECC MASTERPLAN (QD2)

Purpose of Report:
To advise Committee of a proposal to provide temporary funding support totalling £40 million,
through either a purchase/buyback agreement or a fully secured loan, to Scottish Exhibition
Centre Ltd (SECL) to ensure that it has access to the finance required to complete the
construction of the new SECC Arena within the required timescale.
It is recommended that the Committee:-

(a) Agrees to provide funding support of £40 million to Scottish Exhibition Centre Ltd (SECL)
to allow the construction contracts for the SECC Arena development to be let

(b) Notes that the funding support will be provided either through a purchase/buyback or a
fully secured loan arrangement, whichever is the most tax efficient and financially secure
for all parties involved. (Option 6 in the report).

(c) Notes that SECL will meet the costs of the funding support from the proceeds of the
disposal of the West Car Parks when the residential property market recovers.

(d Authorises the Executive Directors of Development and Regeneration Services, Corporate
Services, and Financial Services to undertake due diligence to determine the most
financially secure tax efficient permutation, and report back to the Executive Committee
for final approval.

(e) Notes that all the land and property valuations have been assessed by CB Richard Ellis in
accordance with the Royal Institute Of Chartered Surveyors (RICS) Valuation Standards

(f) Agrees to lease the proposed multi-storey car park, on final terms to be agreed between
SECL and City Parking (Glasgow) LLP, and sub-lease it on identical terms to City Parking
(Glasgow) LLP.

[Mark N]

Is it still opening in 2007 ?

[Mori]

[Mori]

SECC Arena Funding.doc (3 pages)

SECC Arena: Provision of Funding Support

Purpose of Report:

To present to Committee the terms of the proposed funding agreement with the
Scottish Exhibition Centre Ltd (SECL) to allow the completion of the new Arena.

Recommendation:

The committee is asked to
(a) Approve the terms of the Purchase/Buyback proposals as set out in the
report; and
(b) Instruct the Executive Director of Corporate Services to submit the proposal
to SECL for consideration at its Board meeting in November 2010.

1. Background
1.1 At its meeting on 27 May 2010 the Executive Committee agreed to provide
funding of £40m to SECL to ensure it had access to the finance required to
complete the construction of the new Arena. The 2 options recommended for
further diligence were purchase/buyback or a fully secured loan. Officers
were instructed to identify the most tax efficient and financially secure
arrangement and report the terms back for final approval
2. Options Appraisal
2.1 Officers from the Council and SECL have analysed the legal, VAT, Tax and
accounting issues arising from both options. Core to the funding commitment
is the ability of the Council to recover it borrowing costs. Values therefore
need to be generated from the SECL assets and secured by the Council.
Secured Loan
2.2 Further diligence has clarified that the Council would require to charge a
commercial interest rate on any loan provided. Failure to do so would be
constitute a “soft” loan and mean a charge of circa £13m against the Council’s
accounts in year 1. SECL have also confirmed its ability to repay the loan in
the initial years would be limited and that rolled up interest payments would
present them with a significant financial challenge. Notwithstanding the fact
that the Council would take a security over the SECL assets, that security
would rank behind SECL’s funder for the Arena and HMRC. For these
reasons this option presents a high financial risk to the Council and is not
recommended.
Purchase/Buyback
2.3 This option is based on the principle that the Council would acquire ownership
of SECL assets, lease them back to SECL who would have the ability to buy
back their interest from the disposal/development values generated from the
West Development Site (WDS) (currently operating as a car park) as the
residential property market recovers.
2.4 This is the favoured option as it generates a rental income to the Council and
consolidates the site in the name of the Council.
2.5 The terms of the agreement encompass:
the Council will acquire title to the SECL land and buildings not already
currently owned by the Council (excluding the West development Site
(WDS) for £40m;
the Council will grant to SECL a 125 year ground lease of the area
outlined in red on the attached plan for £1 per annum;
the Council will grant to SECL a series of Occupational leases over the
SECC sheds with an overall annual rental payment equivalent to the
Council’s financing costs;
on disposal and/or development of the WDS by SECL, the Council will
allow SECL to re-acquire the sheds on an individual and/or collective
basis up to the value of the outstanding balance due to the Council at
that point in time;
the Council will take security over both the Arena and the WDS. The
Security over the WDS will obligate SECL to use any funds generated
from its disposal and/or development to re-acquire the sheds and repay
the outstanding sums due to the Council
SECL will complete the construction of the Arena;
2.6 Additionally, the disposal of the sites for hotel, office and multi-storey car park
uses by SECL will be by long ground lease to ensure that the land remains in
Council ownership.
3. Service Implications
Financial Implications
The Council will be reimbursed in full from a combination of the lease rental
and receipts generated from the West development Site (WDS). The funding
can be contained within the Council’s overall financial plans. Funding will be
provided to SECL in line with the cash flow requirements for the construction
contract.
Legal
The Council will require to enter various legal agreements with the SECL prior
to funding being released.
Personnel
None
Environmental
None
Service Plan
The proposal is in line with the DRS Service Plan, the Joint Economic
Strategy, the Tourism Strategy and supports the Commonwealth Games
Venue Programme
4. Recommendation
4.1 The committee is asked to
(a) Approve the terms of the Purchase/Buyback proposals as set out in the
report; and
(b) Instruct the Executive Director of Corporate Services to submit the
proposal to SECL for consideration at its Board meeting in November
2010.