TRAFFORD Council confirmed their £4 million loan support for a redeveloped Lancashire County Cricket Club hotel, amid accusations that the scheme presented too great a risk.

The Labour Group came out in opposition to the deal during the authority’s meeting on March 26, questioning why the council was stepping in when banks had decided not to lend the club money.

Setting out the report, Cllr Myers said: “The existing 68-bedroom lodge is way past its sell by date and will be replaced by a branded, franchise hotel providing 150 quality rooms for guests.

“It’s estimated that these guests will add a gross value added of £2.3 million to the local economy.

“In addition to the short term construction jobs that will be created by the development, the hotel will provide 76 new jobs for people in Trafford.”

Labour leader, Cllr Andrew Western said the report was ‘like a bikini’.

“What it reveals interesting. What it hides is vital,” he said.

“It raises a series of questions about why we would take the risk when a bank itself considers the risk too high.”

He added: “This is a council who at its budget meeting saw Conservative members stand up, time and again talking about the need to live within your means, yet here we are financing a loan.”

He added that LCCC had already secured test cricket and that there was no imperative for building the hotel on those grounds.

Cllr David Acton added: “I believe that the public will think that it’s quite strange that we will possibly borrow money, or take it from reserves and hand that over for a commercial enterprise whilst at the same time we’re having to cut a lot of the services within the budget.”

Lib Dem leader Cllr Raymond Bowker said the deal was a ‘good business venture’.

Council leader Sean Anstee said that the loan was a separate issue from the budget cuts and that the £4 million could not have been used to support services affected by austerity measures.

“I want us to be a council that is supporting growth in our economy and creating jobs,” he said.

“This investment would be worth £12 million for the borough.

“This is going to generate a return for the council, year on year and it’s going to cost Trafford tax payers nothing."

Regarding the perceived risk, Cllr Myser said KPMG had deemed the loan risk ‘very low’.

Councillors voted to back the loan, 35 for and 23 against.

Cricket club loan. Key points:-

Ten year loan from Trafford Borough Council.

Club will pay council a £40,000 arrangement fee.

To provide the loan, the council will borrow £4 million from public works loan board, but money may be available from reserves or cash flow.

Deal will provide a net income to council of £105,000.

Council gets naming rights to LCCC cricket school and 50 days a year for community and educational use.

LCCC will provide:-

A member of staff to support and mentor Gorse Hill Studio projects.

Conference facilities to the council for three days a year free of charge.

100 complimentary tickets for each cricket match, to be given away or sold to residents to generate money for the council.

Hospitality table for ten guests of the council during an international cricket match.