“Casino style bet” fails to pay off for SLDC


Councillors react in horror as worst case scenario for K Village rapidly develops

 

£100,000 of tax payer money lent to K Village may disappear after a “casino style bet” fails to pay off for South Lakeland District Council with the company running the site going into administration

 

Councillors have reacted in horror to news that K Village has gone into administration putting jobs and a £100,000 tax payer backed loan to the company in the balance. The loan was agreed by South Lakeland District Council’s Cabinet on the 11th December 2011 in lieu of legally binding contributions from the firm to town development.

 

At the time leading Conservative Tom Harvey voiced concerns to the local media saying

“£100k of the money is to come from K-village as part of the S106 development agreement when it was built, and K-village have essentially asked to defer their contribution. SLDC Cabinet members decided that its OK to spend taxpayers money in place of this and that K-village will indeed pay up in due course – lets hope they stay solvent” and that Tim’s team needed to be clear to tax payers ” and accept there is a decent chance of not recovering the money.”

 

At the time the loan was made members of the public were asking for the decision to lend the money to be “called in”, which would have lead to further scrutiny and may have stopped the loan all together.

 

South Lakeland District Councils opposition spokesman Ben Berry commented saying “This is a dire situation. We have jobs and businesses on the line and, due to a casino style bet on the firm, SLDC is set to lose £100,000 that it simply cannot do without. I just hope the administrators can find a suitable buyer who is able to work with existing businesses to rejuvinate the site.”

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