WORK could start again on Oxford United's new stadium by the end of the month following yesterday's historic events at the Town Hall.

United and Oxford City Council finally put pen to paper to seal the deal which will allow club owner Firoz Kassam to build a hotel and multiplex cinema in return for finishing the U's half-built ground.

Workmen downed tools at Minchery Farm in January 1997, but Kassam said yesterday that he hoped they would be back on site in "days rather than months".

"They should be there very soon," he said. "I don't want to specify, but I see no reason why they should not be there by the end of the month.

"We have a contract proposal with Barr Construction, we are agreed over the cost, and it is just a matter of getting it all signed. They are on stand-by and need two weeks notice to move in.

"I would like to express my thanks to everyone who has helped to get us here - but it is now down to me to deliver what I have been promising!"

However, Kassam, who revealed that the stadium will cost just over £13m to complete, warned that there were still obstacles to overcome.

"It is common knowledge that there are problems to work on," he said. "But we have agreed with the council to resolve those issues in the next few days."

The potential banana skins are:

A judicial review set for March 13 which will determine whether the council was right to award planning permission for Kassam's proposed multi-screen cinema and hotel.

A Thames Water claim for compensation for breach of a restrictive covenant on the stadium and also the hotel and multiplex sites. The covenant states that the land must be used for recreational purposes only.

A claim for compensation over loss of rights of way by Minchery Farm resident Les Wells.

A covenant which prevents United from selling anything other than Morrells beer at the new ground.

Despite this, City council leader John Tanner said he was thrilled. "It has been a little longer coming than we both hoped," he said. "But we are now home and dry. I hope there will be nothing now in the way of getting the ground completed." Under the terms of yesterday's agreement, Kassam will pay £900,000 for the freehold on the new stadium site. United were originally to have paid the council £2m for a 125-year lease.

The council will also give Kassam eight acres of land at Minchery Farm on which to build his hotel and leisure development. In exchange, it will receive a 20 per cent stake in the company set up to own and run the stadium.

Kassam, however, must finish the stadium before he is allowed to build the multiplex. He will be allowed to start work on the hotel straight away, but the land on which it stands will only be transferred to him when the stadium is up and running.

Story date: Saturday 05 February

Converted for the new archive on 30 June 2000. Some images and formatting may have been lost in the conversion.