Velodrome cost soars to $22.9m
A velodrome and multi-use sports facility proposed for Taradale is now expected to cost $22.9 million – up from an earlier estimate of $15m.
The increased cost is outlined in a detailed business case for the project, commissioned by Napier City Council and due to be discussed by councillors at a meeting today.
The council is proposing funding a third of the cost of the facility and the new projections mean the contribution from ratepayers would increase from $5m to $7.7m.
But the project has a way to go before it is approved, with significant fundraising needed to secure the remaining two-third investment of $15.2m.
In a report on the project prepared for today’s meeting, council staff say one primary source of funding will be the Lottery Grants Board Significant Projects Fund, with an application pending for $3.5m.
The report said other sources of funding would include corporate sponsorship, other local authorities, gaming trusts, community and private trusts and community fundraising.
The project has previously been criticised as being predominantly a cycling facility which would benefit only a limit number of participants. But the council report said work on the project since it was first proposed, including public feedback, have modified the concept to make the design more inclusive to a range of activities.
‘‘Rather than a single-use velodrome with some capacity to host additional sporting codes, council is now proposing to invest in a regional indoor multi-use sport and recreation facility that incorporates a velodrome, located on land adjacent to Pettigrew Green Arena.’’
The inclusion of a velodrome as part of the proposal ‘‘is due to the need to provide the widest range of sporting participation opportunities for the widest range of age groups’’.
Because cycling was a growing sport, it was ‘‘almost certain’’ that a facility without a velodrome would not secure Lottery Grants Board funding, council staff said.
According to the business case, construction of the facility would inject $60m into the local economy and $3.6m a year would flow into Hawke’s Bay from visitors attending sports tournaments.
The facility would break even or generate a small surplus each year, with operating costs being off-set by rents from retail space within the complex.
While councillors are due to discuss the project today, staff have recommended they defer making any decisions until a special meeting scheduled for March.
The council previously set aside $500,000 to fund the preparation of the business case for the facility.
An artist’s impression of the multi-use sports facility, including a velodrome, being proposed by Napier City Council.