Eden trust asks for loan hol­i­day

Central Leader - - News - By Heather McCracken

Eden Park bosses want a break on loan re­pay­ments dur­ing the $240 mil­lion sta­dium up­grade.

Auck­land City Coun­cil will de­cide to­day whether to ap­prove a prin­ci­pal re­pay­ment hol­i­day un­til April 2011.

The board would con­tinue to pay in­ter­est but skip the prin­ci­pal re­pay­ments to solve a cash­flow cri­sis dur­ing the re­de­vel­op­ment.

Of­fi­cers rec­om­mend ac­cept­ing the deal that would re­duce the coun­cil’s cash­flow by $2.8m over the next two and a half years.

A re­port by coun­cil busi­ness ad­vi­sory man­ager Gareth Stiven says the loans would still be re­paid in full, but more than two years be­hind sched­ule: “As the board will con­tinue to make in­ter­est re­pay­ments at com­mer­cial rates, the over­all fi­nan­cial im­pact on coun­cil is neu­tral.”

The Eden Park Trust board owes the coun­cil $6.8m.

The change will com­pen­sate for loss of in- come be­cause of the clo­sure of the south and west stands.

The coun­cil’s fi­nance and strat­egy com­mit­tee was to de­cide on the pro­posal at a meet­ing to­day.

The coun­cil is not con­tribut­ing any money to the re­de­vel­op­ment, but plans to spend more than $60m on cap­i­tal projects around the park and on cup ac­tiv­i­ties.

Auck­land Re­gional Coun­cil has pledged $10m to­wards the sta­dium up­grade, while the gov­ern­ment is to con­trib­ute $190m.

Newspapers in English

Newspapers from New Zealand

© PressReader. All rights reserved.