Eden trust asks for loan holiday
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.