Taxpayers will foot a massive bill to ensure the development of Salford City Reds new stadium goes ahead.

Part of the land earmarked for the new stadium is the subject of a covenant restricting its use to 'public open space and agriculture'.

And taxpayers will have to cover a 'compensation' payment by Salford Council to the holders of the covenant.

The land at Barton is owned by the council but the covenant is held by a 'third party' whose identity the council will not reveal.

As reported in the M.E.N the council is to borrow £20m to build the 'community sports' stadium.

The Reds will not be the only tenants of the 15,000-seat stadium. The council says for it to be viable other organisations must use it outside of match days.

The council owns 40 acres of the stadium site and partners in the project, Peel Holdings, owners of the Trafford Centre, 30 acres. The covenant covers approximately 19 acres of the site.

A council report says that part of the council's land is 'subject to a restrictive covenant which could prevent the proposed development taking place'.

But the council has used planning powers to 'appropriate' the land which allows 'the erection, construction or carrying out of building work...even if it involves interference with third party rights.'

Compensation

In return the 'third party' will be paid compensation.

Councillor David Lancaster, Salford council's deputy leader, said: “We’ve known about the covenant for some considerable time and are now working to resolve any outstanding issues with it.

“This is a normal part of developing any sites which have been assembled over a number of years and from a variety of previous owners.

“Clearly, I can’t pre-empt any of those discussions or negotiations as that would not be in the interests of our taxpayers.

“We have good legal advice on this and expect to reach a satisfactory outcome.”

The North West Development Agency has said it can provide £3m for preparation and infrastructure work for the stadium which is due to start this month and be completed by the end of September.

The council's ruling Labour cabinet gave the go ahead for the stadium this week despite some councillors expressing reservations about the council's financial commitment to the scheme.

The stadium will replace the Reds 109-year old Willows ground in Weaste.

It is scheduled to be finished for December 2011 and is vital for the Reds to retain their Super League franchise in time for the start of the new season in February 2012.