{"id":27438,"date":"2018-11-26T00:00:00","date_gmt":"2018-11-26T00:00:00","guid":{"rendered":"https:\/\/cms.fiveaa.com.au\/uncategorized\/sma-boss-explains-why-they-had-to-borrow-42m-from-taxpayers-for-new-oval-hotel\/"},"modified":"2018-11-26T00:00:00","modified_gmt":"2018-11-26T00:00:00","slug":"sma-boss-explains-why-they-had-to-borrow-42m-from-taxpayers-for-new-oval-hotel","status":"publish","type":"post","link":"https:\/\/cms.fiveaa.com.au\/show\/sma-boss-explains-why-they-had-to-borrow-42m-from-taxpayers-for-new-oval-hotel\/","title":{"rendered":"SMA Boss Explains Why They Had To Borrow $42M From Taxpayers For New Oval Hotel"},"content":{"rendered":"

Adelaide Oval management has had to borrow $42 million in public money — rather than source it privately — to build a new onsite hotel because of its \u201ccomplex\u201d position as a subtenant, says the Stadium Management Authority.<\/h3>\n

The SMA\u2019s Andrew Daniels told FIVEAA breakfast on Monday:<\/p>\n

\u201cThe business plan does stand on its own two feet. The only challenge that we have is actually in the issue of security for the loan\u2026<\/p>\n

\u201cWe\u2019re a subtenant, we sublease from the government who themselves lease form the Adelaide City Council and the land itself is actually Crown land. The building is owned by the government. Effectively we\u2019re doing a 40-odd million dollar leasehold improvement to a facility that we lease on land that\u2019s owned by the government. It\u2019s not that money can\u2019t be sourced from the private sector, it\u2019s just that it\u2019s very, very complex because of those security arrangements.<\/p>\n

\u201cIt\u2019s been a tough negotiation as you would expect with the government. It\u2019s at full commercial rates. The taxpayers will be making the profit on the loan rather than the bank.\u201d<\/p>\n<\/blockquote>\n\n