Watford Hornet's £32m stadium makeover

The project, which is scheduled to start at the end of the season, will see improvements for fans and corporate customers, the players' tunnel and dressing rooms relocated, a new East Stand built, the corners between the existing East Stand and Vicarage Road and Rookery Ends filled in, with capacity increased to between 22,000 and 23,000.

Central to the financing and viability of the scheme is a deal with Origin Group, a company specialising in the development of affordable housing for key workers.

Origin will pay £19m towards homes for staff from neighbouring Watford General Hospital. The development will "bolt" on to and "wrap-around" the existing structure and will be the first piece of the jigsaw in the Watford Health Campus project, freeing up land currently used on the hospital site for key worker housing.

In return for leasing the land at the rear of the Rookery, Watford will receive £4 million from Origin, leaving £9.5 million to be found to pay for the stadium redevelopment. The club has ringfenced £3 million of the revenue they will receive this year, and over the next two years, and chief executive Mark Ashton has said the remainder will be raised with "sensible, long-term bank loans or equity".

Graham Simpson said he was delighted with the redevlopment plan and described it as "momentous" in terms of the history of both club and town.

He said: "I think it is a big marker in the ground for Watford to take us into the 21st Century and create a sustainable club, which is the most important thing we must do as a board."

The chief executive allayed fans' fears that the redevelopment cost might impact on manager Adrian Boothroyd's ability to strengthen the playing squad.

He said: "The fans are right to say it will affect Aidy's budget. It does because it helps us give him more money in the long-term and in the short-term it doesn't affect him at all. This is about securing the long-term future of the club."

The announcement brings to an end an 18-month wait for supporters, eager to hear what the club's plans were for its home of 84 years since the chief executive first mooted the redevelopment in the Watford Observer.

Proposals are broadly in line with details released by Mark Ashton in the past, in his quest to turn the club into a "profitable 365-day-a-year business".

The redevelopment plan, subject to planning permission being granted, is a four-phase process: n Phase one: Corporate facilities in the Upper Rous will be enhanced and the club "are about to purchase" some land from the hospital to construct a new entrance to the stand.

A far-reaching overhaul of amenities in the Rookery with new bars, kiosks and concourses.

n Phase two: Relocation of the tunnel, changing rooms, matchday control and media facilities from their current location in, or near to, the East Stand to the south-west corner between the Lower Rous and Rookery.

Construction on key worker housing.

n Phase three: A further expansion of the corporate facilities in the Rous.

n Phase four: The new East Stand will be built.

Mr Ashton said: "The whole thing has been put together to give minimal disruption. It is quite difficult because it is by no means a conventional rebuild of the stadium. A lot of the pre-works will be done in the close season and a lot of the other works will actually be done during the season.

"The big disruption will come when we develop the East Stand but we're trying to minimalise that by moving everything out to leave us with a shell that we can take down."

While the redevelopment work may be scheduled to happen within the confines of the stadium, it may yet stretch across Vicarage Road.

Watford purchased the freehold to the Red Lion in Vicarage Road earlier this month and, although reluctant to discuss the club's plans for the pub, the chief executive said: "That area we would see as a further enhancement of facilities for core supporters in the short, medium and long-term."

Mark Sinderbery, chief executive of Saracens rugby club who share the ground, said he had been kept fully briefed by the football club over the past 12 months and that he was happy to see the plans finally announced.

He said: "The stadium is in desparate need of modernisation. At Saracens we are excited by it. It's an exciting project to be undertaking and we understand that from a supporters' position there will be significant improvements."

But some neighbours of the ground were not so pleased.

David Rees, of St James Road, acting chairman of Vicarage Village Residents Association, said: "We are probably not best pleased about the new development but I need to see the plans to comment fully. But it does seem to be a good idea for the hospital. The price of property around here is prohibitive for staff. I'm surprised that they can find space for these new properties.

"There's always room for improvement here. The worst thing about the area is the traffic. It's an absolute nightmare along Vicarage Road and Wiggenhall Road. It's mainly the traffic round here that's a problem and I can see that getting much worse with the redevelopment of the ground."

Philip Boyce, manager of Watford Printers Ltd who are based on Vicarage Road, thinks the redevelopment of the ground will make a great improvement to the area. He said: "Hopefully we won't be affected too badly while the building work is going on but it's for the benefit of the club. I'm very conscious of what goes on at the club as a business because this affects me, but this will be good for the community."

Geoffrey Mallord, president of North Watford Allotment and Garden Society, said the removal of allotment space is a worrying development. He said: "The ground behind the football stadium is ground that was given to the people of Watford many years ago and it belongs to the people of Watford. As allotment holders, we are against any taking away of allotment ground. We do not like to see any allotments disappear."