$2m still needed from CODC for hospital rebuild

THE Government’s $1 million grant to the Maniototo Hospital rebuild has not changed the amount required from other funders, and a $2 million pledge from the Central Otago District Council is still required, hospital leaders say.

Prime Minister Jacinda Ardern last week gave $1 million to the hospital during a stop on her rural tour of Otago.

Former Labour leader Andrew Little had pledged the money before the election, but hospital leaders were unsure if it would come through, and were thrilled about the funding, Maniototo Health Services Ltd (MHSL) manager Geoff Foster said.

Before the Government donation, MHSL had $6.3 million, comprising $2.5 million from hospital reserves, $2 million from the Central Otago District Council — to be either repaid by Maniototo ratepayers or funded through Maniototo land sales — and $1.8 million from Maniototo fundraising and grants, including a $500,000 Otago Community Trust grant.

The hospital rebuild is expected to cost about $7 million.

The Government’s grant did not change the amount required from other funders, Mr Foster said. This was because the final price of the rebuild was not yet known, and the hospital needed money for contingencies and any overruns.

‘‘We’re still working through our final figures. But we still require the full contribution from the council.’’

The Maniototo Community Board (MCB) last week decided to extend the lease on the farmland it owns which could help fund the Maniototo Hospital rebuild, while it decides what to do with the land.

Maniototo farmer Mark Harris leases two farms, one for $6500 a year and the other for $18,000.

Both leases expired on March 31 this year and will now continue until March 31, 2019 under the same terms and conditions.

The land had been identified as a potential source of income to help fund the rebuild of the Maniototo Hospital, and it was intended to ‘‘put a process in place’’ to determine the future of the land, involving a ‘‘request for proposals’’ for either sale or lease of the land, a report from Central Otago District Council property officer Tara Bates to the community board said.

At last week’s meeting, board members said they were confused about when the hospital needed the money and what would happen if it called on the funding before a decision about the fate of the properties had been made and the board had enough money for the grant.

Mr Foster did not want to comment about communication from the council about the issue, saying only that the board had been told the council would get in touch with the board about the $2 million grant.

Otago company Stewart Construction started work on the development yesterday.

The residential part of the hospital is expected to be ready by April next year and the medical centre and community facility with Xray facility and specialist appointments shortly after that.

It has not yet been decided what will be done with the original hospital building.