Green light for Blues 'sports mecca' dream for city bringing hope to Birmingham

A 48-acre land sale between Birmingham City FC and the city council in Bordesley has been given the green light. Councillors have, as expected, backed proposals to sell the 48 acre former Wheels park to the Blues in a landmark multi million pound deal, rumoured to be in the region of £50 million.

The council officer leading on the project, Philip Nell, director of property and investment, said he hopes the final documentation for the deal will be signed within a fortnight. Even now, however, the council says it is officially unable to confirm the identity of the purchaser and Birmingham City FC have not commented.

But we can confidently confirm that Blues are behind the buy. The site is destined to be the site of a longed-for 'sports quarter' with a new Blues stadium at its heart. A meeting of the city council's cabinet committee (property) held Thursday March 28 supported the proposed deal.

READ MORE:Birmingham City FC buy Bordesley Green Wheels land 'to create super stadium'

In a private session confidential details of the arrangement were discussed before councillors emerged to confirm the go-ahead. As exclusively revealed by BirminghamLive earlier this week, the move by Tom Wagner and the team at Knighthead will see them move onto the site once it has been decontaminated and prepared as part of a 10 year vision for the club. It demonstrates their commitment to the city, and provides a massive fillip to the beleagured council as it battles with its financial crisis.

Cabinet membeer Cllr Majid Mahmood, born and bred in east Birmingham, expressed his delight that the land was being released for a project that will "act as a catalyst for the economic regeneration of one of the most deprived parts of the city, creating 3,000 jobs as well as skills and training for local people". He added: "This deal will also trigger huge interest locally, nationally and internationally."

Council leader Cllr John Cotton said afterwards of the deal: "I think this is a brilliant step for the city. We are still seeing record levels of investment in Birmingham and this deal demonstrates that. This site is vital for the future of East Birmingham. The area (around the Wheels site) is troubled by high unemployment and a lack of opportunities - this gives a great chance to create something special."

Mr Nell added: "I cannot comment on recent media reports (about the buyer) but this site is integral to our ambitions for improving the health and wealth outcomes of thousands and thousands of people in our city. We will be pushing the social, environmental and economic opportunities this offers with the purchaser as we move forward."

He said the council was "in the final stages of agreeing documents on the sale... and looking to transact with them in the next week or two."

Cllr Robert Alden (Cons, Erdington) referred to media reports of the deal and said: "The council must be Blues fans because Villa fans will be horrified to learn that the curse placed on St Andrew's might no longer impact Blues fortunes going forward.

"Assuming the newspaper reports are correct, it is important the council engages with the purchasers very proactively from the beginning around access to the site," he said. Potential improvements might be needed to the train lines into Adderly Park station at the top of the site and other public transport networks, he said.

Cllr Alden also sounded a note of caution, adding that safeguards might be needed in case the current owners sell up and the land ends up in non football hands. "What has happened elsewhere is clubs get taken over and their ground ends up owned by someone who isn't a football club...this is all very hypothetical but that might be something we need to take away and safeguard against."

Negotiations between the club's owners and Birmingham City Council have been going on for months, according to insiders. We are told discussions briefly foundered amid concerns over the city council's financial plight - it declared its de facto bankruptcy last year - and impatience from the owners to get a deal done.

"Initially there was talk of a joint venture approach, where the council retain an equity interest," said one insider. "However, that later moved to a full disposal approach."

There were some hiccups in the delicate discussions, according to one insider, with input needed from the council's lead government commissioner Max Caller and West Midlands Mayor Andy Street among others to reach a final resolution, which we understand was achieved in January.

The club's owners are said to envision creating a football-led sports complex circling a new stadium, a Midlands version of Manchester City's Etihad. The formal council recommendations agreed today were:

• Approve the disposal on a freehold basis of council owned land at Bordesley Park, together with additional council owned land interests. (These additional areas are set out in a separate, unseen appendix)
• Delegates the approval of the final sale terms to the Assistant Director of Investment and Valuation
• Authorises the City Solicitor (or their delegate) to negotiate, execute and complete all relevant documentation
• Notes that the purchaser will reimburse the City Council’s reasonable and proper surveyor and legal costs.
• Notes that upon disposal, the city council will continue to consult with the Department for Levelling Up, Housing and Communities (DLUHC) on options to apply the Levelling Up Fund (LUF) grant awarded for Bordesley Park for future remediation, reclamation, and acquisition.