Something just occurred to me.

I was just reading the cost of breeze block thread and the following popped into my head.

I'm sure we have been told that the profit from the HHP devlopment is going to pay for the grandstand. The suggested figures for all of this are:

HHP £57m;
Profit 20%;
Grandstand £10m.

(Obviously this does not factor in the variable costs of breeze blocks or the associated profits from the Millbay £150m development or the Civic Centre £20m.)

We have also been told that revenue from the retail outlets will be need to pay for the grandstand.

But why?

I can't see why this is essential when 20% of £57m = £11.4m which is a huge £1.4m greater than the cost of the grandstand.

Can anybody think of any reasons why the retail unit income needs to be allocated to the project, and hence away from the club?

because brent wants to pocket that extra million plus..? that would pay back what he has lent to the club, so he has nothing to lose on his philantropy

History will condemn those who have protected the reluctant one, whilst he boxes in the club and any chance of a bright future.

Village til the end.

Sir Francis Drake wrote:

I was just reading the cost of breeze block thread and the following popped into my head.

I'm sure we have been told that the profit from the HHP devlopment is going to pay for the grandstand. The suggested figures for all of this are:

HHP £57m;
Profit 20%;
Grandstand £10m.

(Obviously this does not factor in the variable costs of breeze blocks or the associated profits from the Millbay £150m development or the Civic Centre £20m.)

We have also been told that revenue from the retail outlets will be need to pay for the grandstand.

But why?

I can't see why this is essential when 20% of £57m = £11.4m which is a huge £1.4m greater than the cost of the grandstand.

Can anybody think of any reasons why the retail unit income needs to be allocated to the project, and hence away from the club?

To be fair the cost of the ministand should be weighed up against the profit from the profit making areas of the development. This could also apply to the Ice rink as it is also a contractual obligation.

Where has the £57M figure come from? Saw Graham Clark state it t'other day but it was always £50M up to now which seemed overblown as Kier have put a value of £40M on it. If the overall costs have risen 14% in last couple of months the development funding could really be struggling in present form

The other figure not worth the proverbial is the £10M "free" ministand build figure. There is a lot of costs associated with that figure which are due to the underground car park and need for the morlock standard facilities because of the land grab of ground floor.

I just rattled off figures I have seen quoted elsewhere. I assume that Graham must have seen £57m somewhere because it is an odd one to make up or guess. Any idea what better figures would be then?

At £1000 per seat the stand would be about £5m. Is that better? Split the difference: £7.5m?

Kier's Waste Management plan which went in with the planning stated their project cost as £40M and anything you can find online states overall scheme value as £50M. Graham may well be aware of updated figures or could be typo.

I'd say the £7.5M cost of stand build is probably about right but remember how much of the building is not for PAFC's benefit.

It could be £50m for HHP + £7m for the stand.

20% of £50m = £10m.

Leaving £3m...

Why don't you just ask James instead of wildly speculating?  

Sir Francis Drake wrote:

I just rattled off figures I have seen quoted elsewhere. I assume that Graham must have seen £57m somewhere because it is an odd one to make up or guess. Any idea what better figures would be then?

At £1000 per seat the stand would be about £5m. Is that better? Split the difference: £7.5m?

The £57m figure is the one quoted (see below) in the Cabinet Report (3rd September 2013) of the City Council as to the value of the development.

"The Council, having acquired the freehold of Home Park Football Stadium in 2011, and having leased
the Stadium to Plymouth Argyle Football Club Limited, has now been requested to assist the delivery
of a major improvement to the Stadium, in a £57.0m commercial development centred on the
adjoining privately-owned Higher Home Park."

To assist in other matters it is probable that the reported £40m contract for Kier's excludes the internal fit out of most of the buildings which would rely on other specialist contractors.

17 million for fit out? Really??

Graham, Thanks for clarifying source of £57M figure.

I could understand some of Odeon's fit out costs being outside the Kier £40M figure but would expect the vast majority of build costs to be in the Principal Contractor's contract.

There are of course all the "professional" fees to be added. The designs by BDP and the legal fees incurred by Akkeron and their team to get planning could have easily accounted for the extra £10M.

Be interesting to see whether the hike from £50M to £57M is due to subcontractors' tenders outweighing BDP's estimates in this time where the construction industry isn't cutting it's own throat for work.