Wrexham Village Q&A
The proposed 'Wrexham Village' development has aroused great debate amongst Wrexham fans and, as a Board, we would like to answer several of the questions which have been commonly raised.
Wrexham FC (2006) Limited ('WFC' Ltd) is the company that runs the Football Club and which owns the freehold assets such as the stadium and training ground.
It has always been the intention of WFC Ltd to develop the land adjacent to the 'Kop' end of the ground and 'outline planning' permission has already been granted.
The original intention had been to sell the land to a property developer; indeed there was a deal agreed in principle to do this but this has subsequently been withdrawn by the Developer.
WFC Ltd over the past nine months has been working closely with Glyndwr University in planning and designing student accommodation on this land.
The Board has brought in local specialists to work with the University on this development and, as a result of this consultation, Wrexham Student Village has been created.
The Board has taken the decision that, in order to maximise funds from the site, WFC Ltd should undertake the development itself rather than giving the development profits to a third party.
As a result of this decision, substantially more funds will be retained within the club in direct contrast to just simply selling the land.
In order to raise the necessary funds, and to keep the development separate from the Football Club, a new company called Wrexham Village Limited has been created.
In addition, in order to ensure that funds 'flow' back into the club, a 'group structure' will be formed by which Wrexham Village Limited will own 100% of WFC Ltd.
The Board believe that by undertaking this development they are laying the foundations for the long term future of the Football Club.
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What percentage of the development money will be used for football purposes and what percentage will be taken as dividends by the shareholders?
All development profits will be retained for the benefit of the Football Club. For the avoidance of doubt this means 100%.
As has already been stated by the Board, all monies raised from the development will initially be used to pay off the club's debts and provide working capital to the club, with the balance to be invested in a new 'Kop' stand. Assurances on this have already been given to Wrexham Borough Council.
Who or what will pay the interest when the club borrows money from the Bank for the development?
Wrexham FC (2006) Limited will be debt free as a result of the development. For the avoidance of doubt, the club will have no loans or borrowings at any point. In any event it would be extremely unlikely whether a Football Club could raise the necessary funds in the current economic environment.
Wrexham Village Limited will pay all the interest attributable to the building of the student accommodation.
As the development is a speculative one, do we run the risk that The Racecourse may fall into the hands of a Bank?
The Board disagrees that this is a speculative development as the club is fortunate that there is a ready and willing customer in Glyndyr University, who have given their full support to the development. Indeed, Glyndyr University has a critical need for student accommodation.
If the club does not immediately undertake this development, Glyndyr University will build the student accommodation itself and the club will have missed a 'golden opportunity' to at long last free itself from the clutches of the 'Dismal Jimmy' syndrome.
WFC Ltd effectively becomes a property development company through this deal. How are the club's footballing activities protected?
Wrexham FC (2006) Limited is not the developer. Wrexham Village Limited is undertaking the development and will pay for a Performance Bond (an insurance policy to ensure that the development is completed).
The only impact on club footballing activities is a positive one, in that the club's debts are paid off, working capital is introduced and a new stand is built.
What measures has the Chairman, Geoff Moss, put in place to safeguard the club and ground as part of his deal to sell the club to a 'property developer'?
Firstly the club is not being sold to a property developer as it is developing its own land. Geoff Moss will retain a 25% shareholding in the Club and will be responsible for the Academy and running the 'footballing' side of the business.
The Board has brought in local business people of 'good standing' who are experts in their respective fields to undertake this development and so invest in the Club's future.
Wrexham Village Limited is entering into a legal agreement with Wrexham Borough Council to ensure all the club debts are paid and that funds are set aside for the development of a new stand.
Wrexham FC (2006) Limited will be a 'debt free' business and have an injection of much needed working capital as a result of the development. Wrexham Village is committed to building a new 'Kop' stand.
What happens to the stadium and the training ground at Colliers Park?
Both will remain in the ownership of Wrexham Football Club (2006) Limited and will not be at risk as a result of the development.
The Board has already earmarked areas of the stadium that they would like to improve for the comfort of fans.
Will the shareholders take any profits from the development before the new 'Kop' funding is approved?
The Board confirms that it will take no development profit before the new Kop funding is approved, or indeed after, and this will form part of the legal agreement with Wrexham Borough Council.
Where will the Club Shop be situated if, and when, the 'Dickens Garage' gets sold off?
This is an opportunity to explain to fans that Neville Dickens has not made any charge for the use of his former garage as the Club Shop and Offices. It is proposed that the Club Shop will move into part of the ground floor space constructed as part of Phase 1, and move back to facing the Mold Road at the end of Phase 2.
What funds will be released to manager Dean Saunders in order to address the club's lowest ever league position?
First and foremost, the club has been extremely fortunate to retain the services of Dean Saunders and he himself has made it quite clear that this only happened through his personal friendship with the Chairman, Geoff Moss.
The Board will provide the maximum funds at its disposal, but not at the expense of putting the club into debt.
What are the timescales for all the various stages of the development?
Phase 1 to be completed by 2010.
Phase 2 to be completed by 2011.
The 'Kop' stand to be commenced within two years of completion of Phase 2.
What are the risks, financial and otherwise, of any stage over-running? Will the proceeds of the land sale be contingent on anything (e.g. the 'Developer' has to sell a certain number of units)?
The biggest risk is for the student accommodation development to be delayed and not being able to meet the student demand from Glyndwr University. In such circumstances there is no doubt that the University will build its own.
As mentioned above, there will be a Performance Bond put in place to ensure completion of the development.
What is the club doing about the parking lost as a result of the development?
New temporary parking has already been created at the front, side and rear of the Club Shop whilst Phase 1 is undertaken. The club, via the Supporters' Association, has already obtained an agreement for matchday parking with Glyndwr University which is currently underutilised. The University has also identified additional land for parking.
The Board has also offered to fund a residents parking scheme within the immediate vicinity of the ground in association with Wrexham Borough Council.
