Velodrome receives $1m, with conditions

13 May 2011
Waipa district councillors have agreed in principle to grant the Home of Cycling Trust $1million towards a joint Waikato/Bay of Plenty proposal to establish a national cycling centre of excellence in Waipa - but have attached four conditions before the money will be provided.
The Trust initially requested $3.5m from Waipa District Council, spread over three years, but revised the request to $1m in its submission to the council's draft Annual Plan. The submission was heard in a public meeting on Thursday, May 12.
Councillors voted 12/1 in favour of the submission at the council's Strategic Planning and Policy Committee meeting.
The grant will be reviewed at the council meeting in June before the 2011/2102 Annual Plan is formally adopted.
The four conditions are:
1. Receipt and consideration of the due diligence report commissioned by the Waikato Regional Council.
2. Before any funds are made available to the Home of Cycling Trust the Waipa District Council needs to be satisfied that any rate requirement levied by Waikato Regional Council for the benefit of the Home of Cycling Trust does not adversely differentiate Waipa district ratepayers from other ratepayers in the Waikato region.
3. The cost of borrowing to service the grant does not impact on existing Waipa district ratepayers.
4. The velodrome development is rateable.
The conditions are aimed at ensuring the project and its economic benefit to the district and wider region are viable, while limiting any potential rating impact on Waipa ratepayers.
Council finance staff presented a forecast calculating the cost of the $1m loan alongside additional revenue that would be received in rates and building consent fees as a result of the proposed centre.
The model estimated the average yearly cost of servicing and repaying a $1m loan would be $83,250 per annum over 20 years. New revenue from rates from the cycling centre would be $81,100 per annum. An additional $62,000 would come from building consent fees.
The model was based on the cycling centre having a rateable value of $28m and 25 new homes being built in Waipa as a direct result of the cycling centre. Staff noted the model was a conservative one, and said no consideration was given to other economic and social benefits the proposal may bring to the district.
More than 1340 submissions were received on the velodrome proposal. There were 1161 in support of the council providing funding, 158 opposing the council providing funding and 21 neutral submissions.
Councillor deliberations will conclude this week (Tuesday, May 17). Council staff will amend the draft Annual Plan to include the committee's decisions. The amended Plan will be discussed again at the Strategic Planning and Policy Committee meeting on June 14, before being referred to the full Council meeting for adoption on June 28.
A summary of decisions and minutes from the draft Annual Plan deliberations meeting will be available in late May on the council's website
For more information, please contact:
Ross McNeil
Ph: 07 872 0056 or 027 572 0056
Page reviewed: 18 Apr 2017 1:07pm