BRADFORD Council is being asked to approve a £12million loan to boost the Odeon redevelopment project, after a new report stated the scheme was “not financially viable” without its support.

The authority’s Executive group, which is due to meet on Tuesday, has been asked to approve the loan in principle, alongside giving backing to other bodies “willing to co-fund” development, in order to allow the restoration to proceed.

While the decision has yet to be confirmed, the Council’s portfolio holder for regeneration said delivering a new Odeon would be a “jewel in the crown” for the city.

In September, plans were announced to re-open the derelict cinema as a major live music venue, with NEC Group International signing a 30-year lease as the preferred new operator.

The scheme was costed at £19.8m, with hopes that the venue would open in 2020.

A new report going before the Executive states: “Continuing discussion has concluded that the development, estimated at £20m, is not financially viable without some form of funding from the Council.

“Bradford Live has requested loan capital from the Council, with initial estimates of £12m, which would be repaid through lease payments made by NEC.

“The Council has identified the need to ascertain the optimum legal and and financial arrangements to secure the Odeon’s development whilst complying with its obligations in law.”

Councillor Alex Ross-Shaw, the Council’s executive member for regeneration, planning, and transport, said: “Delivering the Odeon as the country’s largest mid-size venue outside of London, attracting nearly 300,000 people to the district a year, would be an absolute game-changer for Bradford.

“Bradford Live have done fantastic work in securing NEC Group as an operator, and now we are all working round the clock to secure the necessary funding to deliver this fantastic project for Bradford.

“At the launch of our proposed budget on Monday we made clear that with the central government grant to Bradford ending completely by 2020, we have to deliver more growth if we’re to be the successful, confident, and prosperous district we know we can be.

“We already have a number of fantastic city centre regeneration projects in the pipeline, including the National Rugby League Museum in City Hall, our city centre markets proposals, and quality office development with One City Park, but delivering the Odeon would really be a jewel in the crown not just for Bradford, but for the wider region as well.

“We announced measures to boost growth alongside our budget and the Odeon is an example of using our assets to deliver regeneration to the district. The Council borrowing element of the project will be paid back by rent and business rates from the Odeon, so it’s not taking any money away from public services.”

In addition to the proposed loan, the Council and Bradford Live are also exploring a number of other options to co-fund the project, including a bid to secure £4m from the Northern Cultural Regeneration Fund (NCRF), an application for £1.8m from the West Yorkshire Combined Authority, and proposed bid for £2m from the Heritage Lottery.

Lee Craven, director of Bradford Live, said a decision on whether the Odeon would be chosen by the Leeds City Region Enterprise Project as its lead project to potentially benefit from NCRF funding was due today.

On the Council loan, he said he was unable to comment until after the Executive had met to discuss the issue.

On the overall project, he said: “It’s a question of getting these various funds in place. There are lots of pieces to the jigsaw, and they’re all important.”

Earlier this month, Imran Hussain, Labour MP for Bradford East, said he had secured a meeting with Matt Hancock, Minister for State at the Department for Digital, Culture, Media and Sport, to discuss funding for the project.

The meeting is yet to take place, but Mr Hussain said yesterday: “The Odeon has great potential to be a real boost for Bradford and I am pleased that it has had some strong support, not just from the NEC Group who’ve agreed to operate the Odeon for 30 years in a solid vote of confidence in the venue, but from ministers too, who have readily agreed to meet with me to discuss the development in greater detail.

“When up and running, the Odeon could bring thousands of additional visitors and millions of pounds into Bradford, creating many jobs in the process and acting as a catalyst to regenerate the city and bring prosperity to the North. So, it makes strong business sense for Bradford Council to invest in the project to move it forwards, and I look forward to the day Odeon lights up again.”

Si Cunningham, chairman of Bradford Civic Society, described the potential loan as “an investment in Bradford’s future.”

He said: “I wholeheartedly support any efforts to trigger the Odeon redevelopment, and if that means a commercially secured Council loan, I see it as money well spent.

“This isn’t some flimsy speculative scheme, we’re talking about a solid proposal with an internationally-renowned operator on board and experienced developers already on-site.

“The venue itself will be magnificent, but there is also the very obvious potential to rejuvenate the surrounding streets with bars, restaurants, and hotels. So much has already been invested in making this happen, we can’t afford to be timid when the finish line is in sight.”

Jeanette Sunderland, leader of the Liberal Democrat group on the Council, said: “The Council set aside £10m a year to spend on acquiring assets. As a Liberal Democrat, I would acquire assets for the benefit of the whole community. If we use some money as a loan to bring the Odeon back into use and get a commercial rate in return, that is not a problem.

“I would rather see that as opposed to spending £4m on a car park which has only raised £120,000, not enough to pay the expenses of the Executive.”