Loan repayments for Huddersfield’s new leisure centre will top £1m a year.
Kirklees Council has used £18.79m from the deal with Tesco to part-pay the cost of the £36m leisure centre.
After questioning by Clr Kath Pinnock, who asked what the cost was to Kirklees on the balance of the sports centre, it was revealed it would be around £1m a year.
David Smith, director of Resources, said: “The financing of the £36m sports centre is part of our 2014/15 accounts. We have disclosed the payment of £18.79m from the exit agreement and the council has applied that towards the cost of the sports centre.
“The balance is funded through council borrowing in accordance with what members have agreed.
“At the moment we could take out a long term loan but it is probably advantageous to have a short term loan that offers us a better deal. At present the cost is around £1m a year.”
He explained that the £1m covered the principal and loan repayment.
Kirklees secured a windfall from the exit agreement it reached with Tesco, which bought itself out of a legally-binding deal to buy the old sports centre site off Southgate.
Council officers secured cash, an extra settlement so Tesco could exit the deal, plus the troubled-retailer gave the council extra land it had bought in the area to be developed.
Kirklees intends to clear and sell off the site, potentially netting the authority millions.
The comments were made in a meeting of the Corporate Governance and Audit Committee, where councillors received a Treasury Management report.
It was noted that Kirklees was transferring its account banking from the Co-operative Bank to Barclays, following troubled times at the Co-op.
Kirklees had invested £38.7m externally, receiving £229,000 back in interest payments.
