The next phase of Cardiff's International Sports Village is likely to be delayed due to a £55 million funding gap, council leader Rodney Berman has admitted. The ambitious £600 million scheme includes an 8,000-seater arena and a Las Vegas-style water feature, but developer Orion Land and Leisure has informed the council that funds are insufficient to complete these alongside other commitments.
The council has now taken back responsibility for building the arena and water feature, planning to fund them through additional land sales within the site. Berman stated that while the timescale will be affected, the projects will still be delivered. Orion has been given three months to finalise its proposals for phase two, which includes an ice rink.
However, developers have raised concerns that the property slump makes raising money difficult. Rhys James of DTZ noted that two to three years ago, land would have generated significant revenue, but now competition from Cardiff City's new Leckwith ground may affect demand for retail areas.
Former council leader Russell Goodway questioned whether spending £40 million on an arena or large sums on a fountain could be justified with public funds. He said the advantage of private sector involvement was that such sums could be handled privately. Council corporate director Tom Morgan acknowledged the credit crunch had slowed progress but highlighted the site's achievements, including £50 million spent on infrastructure.
