Chesterfield Council's 2001 loan to Spireites paid off, Allen mortgage restructured
The Spireites have paid off a loan given to them by Chesterfield Borough Council 15 years ago.
Chesterfield FC stumped up £861,551 last week, clearing their debt with the local authority and subsequently restructuring the mortgage with club owner Dave Allen’s A&S Leisure.
The initial amount made available as a mortgage by Mr Allen to complete the Proact Stadium now stands at £2million and will be paid back over a 10-year period with a fixed interest rate of five percent.
Mr Allen now has the first charge levied on the stadium.
Huw Bowen, Chesterfield Borough Council’s chief executive confirmed: “Last week the council received a payment of £861,551 from Chesterfield Football Club.
“This payment means that the loan the council gave to the club in 2001 has now been repaid in full and the council has discharged its charge over the football stadium.
“The council is pleased to have played its part in helping Chesterfield FC to re-locate from Saltergate to its new home at Whittington Moor.
“Chesterfield FC is a very important part of the town’s offer and we will continue to support the club with its future projects and programmes.”
Club director and company secretary Ashley Carson added: “The club would like to thank Chesterfield Borough Council for their loan and I would like to thank them for the efficient way they have dealt with this.”
Chesterfield MP Toby Perkins praised the Spireites’ owner for the move and said the council should also be looked upon favourably by supporters.
“I was aware that Dave Allen was intending to cover it and am glad that he has once again stepped in and supported the club,” he said.
“For all the criticism that comes with being Chairman, he has been willing to contribute so many times and that should never be forgotten.
“It should also be remembered that Chesterfield Borough stepped in at a perilous time and I am glad that the club’s statement reflected their gratitude to the council, and I look forward to a continuing positive and constructive relationship between two important Chesterfield institutions.”
The 2001 council loan of £960,000 helped keep the club alive and was secured on the Proact Stadium with first priority over any other loan.
In 2013 Mr Allen told the Derbyshire Times that the council should write off the loan.
He said: “As far as I’m concerned, I think the council should write it off over a five year period,”
“But what I find difficult to come to terms with is that because of this loan of £960,000, the council have first charge on this football ground.
“I’ve got £8.7m in. If anyone is going to have first charge on this football ground, it should be me.”