Council to work with investor on £35m power plant that could save Sheffield Eagles

An artist's impression of the Olympic Legacy Park.

Sheffield Council today promised to work with an investor who wants to build a £35m green power plant in the city - and in the process save the Sheffield Eagles rugby team.

The war of words over the future of Sheffield Eagles has this week threatened to upstage even the blood and thunder of the rugby pitch.

Sheffield Eagles win the Challenge Cup at Wembley in 1998.

A Sheffield-based investor wants to build a rugby stadium, costing up to £7 million, in the Olympic Legacy Park, and a £35m green power plant nearby, which he says will help fund the club.

The Eagles say they face administration if investment does not come within the next month, and have accused Sheffield Council of a lack of support.

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Sheffield Eagles at the Don Valley Stadium before it was demolished.

Few details of the biomass power plant have been made public, but the site the investor has identified is allocated partly for housing and partly for business.

Yesterday the investor, who asked to remain anonymous, said he was running out of patience with the council and was considering taking his money to another city.

But, following inquiries by The Star, a telephone call from Simon Green, the council’s executive director of place, eased the investor’s concerns.

"I trust in the guy and I think we can work together," the investor said. "He's given me his assurances that we will get on with things.

How the new stadium in the Olympic Legacy Park could look.

"Sometimes you have to bang a few heads to get where you want to go. But you have to do it in a structure. The priority is to get the stadium off the ground."

Eagles director of rugby Mark Aston told The Star on Tuesday that the club would be 'dead and buried' within a month if the stadium deal did not go ahead. Mr Aston claimed a lack of support from the city had already put investors off the stadium project and placed the club in jeopardy.

The investor behind the latest stadium plan came on board in March, and put the power plant idea to the council in May. Prior to Mr Green's call yesterday, he said he agreed with Mr Aston's criticisms of the council.

"At the end of the day, we have got a business model that’s got built into it a plan to fund the Eagles. The idea with the stadium is it’s debt-free," he said.

Sheffield Council executive director of place Simon Green.

"We are talking about building an education centre for kids on energy. Putting in a picnic area. We have ticked every box under the sun. It’s not ticking it for the sake of it."

The investor, who has three other similar power plants, said he could make 'good margins' on the business, which would benefit the city. He proposes selling energy to Sheffield at 8.5p per kilowatt for the next 10 years - compared to 10.5p at the moment. This could save the council up to £2 million a year.

"I have not asked them to commit in writing," he said. "We understand there is a process to go through. But we are saying whatever it takes we will deliver. How can you object to that?

"I never even argued about the price of the land. We have all been in business a long time. If there is an investor wanting to come to Sheffield and spend £35 million on a power station and £6 million to £7 million on a stadium, and that’s doing something they made a mess of in a previous life with Don Valley Stadium, I would want to make sure these people were looked after."

Yesterday's discussions smoothed the waters between the investor and the council, and Mr Green said he was excited by the project - but stressed that it would have to go through proper planning procedure and could not just be waved through.

"We are continuing to talk to each other," he said. "There is no issue of talks having paused or broken down.

The Olympic Legacy Park community pitch without a stadium surrounding it.

"I know the investor quite well. It is not some out-of-town investment. Everyone has the needs of the city at heart and it's a case of how we get there."

Mr Green said there was no question of a hidden agenda over the proposed site for the power plant, part of which is allocated for housing and part for light industry under the city's local plan. But a change of use would have to be approved before a power plant could be built.

"If he wants to put a power plant on the land in question that's fine, but it will be subject to the usual covenants and regulations," said Mr Green.

"You wouldn't want us to change planning policy overnight and I think he knows that as well. And perhaps the Eagles have misunderstood the timeframe to get that through the process."

Mr Green admitted he was 'a bit peeved' at some of the comments made by the club.

"We are disappointed that it has come to this. We are disappointed at how they have reacted to the position we are in," he said.

"I can appreciate that when they are facing financial difficulties and there is a perception that a particular line of inquiry is closed they would react in a different way."

But he said there was no question over the council's commitment to bringing rugby league to the Olympic Legacy Park. A 4G pitch designed for rugby use will be built regardless of the stadium plans."We will hopefully find a way forward on what is an exciting project within an exciting portfolio of projects," he said.

Eagles CEO John Whaling said time was something the club did not have a lot of.

"To get to where we are now has taken the best part of four months," he said. "I'm disappointed with the speed at which it has moved."

Mr Whaling added: "If we can't get things sorted in the next three or four weeks we will probably have to go into administration and go into league one. We will be back at square one where we were 17 years ago."

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