Birmingham City Council forced to borrow more money for LG Arena revamp
Restricting the project funding to existing levels would fundamentally affect the commercial performance of the Arena and the visitor experience.”
The council will borrow £300,000, leaving the NEC to find a further £100,000.
The repayment costs of borrowing the money will be met by the NEC, in which the council has a majority shareholding.
Supporting the NEC at a time when the recession is hitting the conference trade continues to be a key priority for the cabinet.
The council has borrowed a total of £261 million since 2005 to re-finance the NEC and pay for building projects.
A council spokesman explained that AWM’s grant had fallen short by £165,000. The remaining £235,000 over spend consists of a number of “non-specific costs” but it was impossible to identify these, the spokesman added.
