Southend United development fails due diligence
A property development that is linked to the sale of Southend United Football Club has not passed a due diligence check.
In a public letter, Southend-on-Sea City Council leader, Daniel Cowan, said plans for hundreds of new homes at Fossetts Farm, to the east of the city, were not in the authority's or taxpayers' interest and should not proceed.
The Labour leader gave developer Citizen Housing until 21June to respond to new proposals that the council believed were financially viable and did not put public money at risk.
Tony Cox, leader of the Conservative group and previous council leader, said: "Up until I left office there wasn't any red flags identified.
"The statement appears to be in direct contradiction to the leader's statement last week and I will be seeking an urgent meeting with officers on Monday."
The developer has been contacted for comment, along with Southend United.
The Custodians of Southend United (COSU) - the consortium that planned to take over the football club - declined to comment.
The consortium, led by Australian businessman Justin Rees exchanged contracts with long-time owner Ron Martin in December, but the takeover has still not been completed.
Mr Martin had planned on moving the club to a new stadium, to be built at Fossetts Farm, while the prospective buyers wanted to renovate its existing home at Roots Hall.
It was proposed that up to 1,300 homes could be built on the land at Fossetts Farm, which could see £20m in funds released for the stadium improvements.
COSU warned recently it "cannot see a path forward without" the property deal.
'On the table'
In the letter, Mr Cowan wrote: "We have also made it clear our involvement is contingent on COSU acquiring the club. In short, if COSU walk, so will we and we will not return for future negotiations."
He said the new proposals suggested to Citizen Housing were similar to those "agreed in 2021 minus the stadium".
The councillor added: "The terms we have set out are workable, achievable and deliver on the aims and demands of COSU and the council.
"This may feel like a negative update but I believe this is the most positive to date. No more time will be spent on unworkable schemes and a scheme that can work is now on the table to be considered by the current owners of the football club."
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