Theatre will still go ahead

The prospect of a whopping rates increase won’t be enough to make Hamilton City Council chop money for a new theatre, councillors say.

Mayor Andrew King recently said city rates needed to go up 16.5 per cent, so council’s hoping a regional theatre rate will gather some cash from neighbouring councils.

Since Founders Theatre closed in March 2016, Hamilton and the wider Waikato have been missing a major performing arts venue.

Philanthropic foundation Momentum Waikato has taken charge and presented a $73 million plan for a new riverside regional theatre near the bottom of Hamilton’s main street.

If council came up with a maximum of $30m, Momentum Waikato agreed to contribute the balance – and that would mean political embarrassment if council backed out now.

‘‘There’s too much outside interest there,’’ councillor Siggi Henry said.

‘‘If we built it ourselves, it would definitely be on the chopping block. But because Momentum is driving this so hard-out, it’s hard to jump off.

‘‘We just have to find a way to finance it.’’

Several councillors had a similar view.

‘‘I think we would be justifiably crucified in the public opinion if we didn’t do it,’’ Cr Dave Macpherson said.

Cr Garry Mallett said it was hard to walk away from generous offers of money and property. City council wouldn’t own or operate the proposed theatre, he said, so it would be similar to the Meteor Theatre model.

Cr Geoff Taylor said council should instead cut nice-to-haves like the upgrade of Garden Place.

Theatre users won’t be just from Hamilton, council says, so it hopes to get $10m of its $30m contribution from its neighbours.

The idea is a regional or subregional rate collected by Waikato Regional Council – like the one used to fund the Avantidrome in Cambridge.

The regional rate plan for the theatre got unanimous support from the Waikato Mayoral Forum, general manager of venues Sean Murray said in a November briefing. But there were mixed views at regional council, Murray said, partly because its regional funding policy would spread the cost over a large area.

‘‘The debate is: is the new theatre more a sub-regional facility and not necessarily going to be a good service to the people of Taupo¯ or Coromandel or wherever?’’

However, King said he was sure they would get a result.

He has allowed money for the theatre in his proposed long-term plan budget, but elected members still have to debate his choices before a draft plan goes to public consultation.

Some councillors were concerned the theatre would use up most of the $80m King proposed for community assets and city development over the next decade. But the money would come from another pot, councillors heard.

Accounting advice was that it would be considered as a grant and come from council’s operations budget.

Cr Angela O’Leary pointed out that meant it would be paid for by rates, not using intergenerational debt to spread the cost. And Hamilton ratepayers would pay through both city council and regional rates, Cr Mark Bunting said.

Waikato Regional Council will consider in December whether to put a regional rate provision into its long-term plan, councillors heard.