Published: 8:44PM Monday February 09, 2009
Source: NZPA
Source:
Dunedin's proposed new sports stadium to replace Carisbrook still has the backing of the Dunedin City Council, despite a $10 million increase in the price tag and less money from contributors.
The council on Monday voted 10 to five in favour of continuing with the contentious enclosed stadium near the city's university, but that is conditional on the Otago Regional Council, which meets on Wednesday, contributing $37.5 million to the now $198m project.
The cost has risen $10 million from $188m because of the increase in land costs and less money than expected from the sale of Carisbrook.
It included a cost of $165.4m for construction, based on a guarantee.
The city council has said the total project must not exceed $188m.
It would contribute $85m to the project, the University of Otago $10m, private sector funding of $45.5m and $10m from the Otago Community Trust.
Monday's meeting also heard of a shortfall in funding of $15m from the private sector and a $3m shortfall from the Otago Community Trust.
Meanwhile, the government has discussed the council's request for help to fund the new sports stadium but hasn't yet reached a decision, Prime Minister John Key says.
Key says depending on how it was funded, there was a shortfall of about $15 million to $30 million.
"We're taking on board their request and we're considering a package of wider issues," he said at his post-cabinet press conference.
"At this stage no decision has been reached about whether we will make any contribution or not."
He says other things have to be considered, such as ensuring the Rugby World Cup works well and the wider context of the development of Otago University.
"In the end, if government made a contribution it would be a modest contribution," he says.
Earlier, the meeting swiftly moved into a closed-door session as councillors heard from the Carisbrook Stadium Trust about commercially sensitive aspects of the project, the Otago Daily Times reported.
The meeting stated at 10:30am, and members of the public in a packed gallery were quick to make their feelings known.
"People are hungry, we're losing our jobs," a man yelled out, before referring to councillors as poodles.
In a report to Monday's meeting, council chief executive Jim Harland said funding shortfalls for the stadium could be as high as $35 million.
Stadium critic Councillor Dave Cull said the deficit is more like $70m than $35m and the project should be stopped.
"The desperate will always put it off in the hope that we might win Lotto," he said before the meeting.
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