Council to consult on Jade Stadium funding
8 March 2007
Christchurch City Council will consult with the public on funding the future development of Jade Stadium.
The Council today supported the proposal to develop Jade Stadium by Vbase, the company which manages the stadium. An amendment to the Council’s 2006/16 Long Term Council Community plan is required and this will go out for public consultation on April 5 as part of the Annual Plan process.
The proposed $60 million upgrade includes replacing the three stands on the eastern side of the stadium with a new stand which will increase the stadium’s seating capacity to between 40,000 and 45,000. The old stands need replacing and New Zealand hosting Rugby World Cup 2011 is a catalyst for the redevelopment.
The Council’s General Manager Roy Baker said the $60 million upgrade would have basically no impact on rates.
Under the funding arrangement proposed, Vbase would borrow $40 million from the Council at commercial rates. Council and Vbase would work together to secure the remaining $20 million from Central Government, the Lotteries Commission and other sources. In the meantime Council would underwrite the $20 million funding gap so that the development could proceed and be completed in time for RWC 2011.
Vbase Chief Executive Bryan Pearson said Vbase was totally confident in its ability to take on and repay the $40 million debt to Council.
Mr Pearson praised the calibre of the project consultants, headed by Athfield Architectus, for their ability to deliver a stadium of international quality at a relatively modest cost.
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