Council Votes to Help Fund Establishment of National Cycling Centre in
28 September 2011
Waipa District Council has voted 8-4 in favour of supporting a $1 million funding request to help build the National Cycling Centre of Excellence near Cambridge. The intention to provide funding was signalled by the council in May, but a final decision could not be made until the Waikato Regional Council had finalised its position.
Mayor Alan Livingston said councillors had a full picture of the proposal, including the costs and economic and social benefits that would come to Waipa and its residents as a result of the centre being established in the District.
In making this decision, the council is satisfied that the funding conditions have been or will be met, Mr Livingston said.
The conditions were:
1. Receipt and consideration of the due diligence report commissioned by the Waikato Regional Council.
2. Before any funds are made available to the Home of Cycling Trust, the council needs to be satisfied that any rate requirement levied by Waikato Regional Council for the benefit of the Home of Cycling Trust does not differentiate Waipa District ratepayers from other ratepayers in the Waikato Region.
3. The net cost of borrowing to service the grant does not impact on existing Waipa District ratepayers.
4. The property is rateable.
Mr Livingston said that based on staff and athlete numbers provided by Bike NZ, the Waipa District stood to gain a major share of the economic benefits the centre would bring. This would include the rating benefits associated with Bike NZ staff and athletes making the district their home.
Waipa ratepayers would pay an average $4.84 per year over the 20 year loan term, with growth in the district reducing this figure over time. Additional rates from Cycling Centre staff and athletes relocating to the district would offset the cost of the loan to ensure no net impact on existing ratepayers.
In moving the recommendation to confirm the funding, Councillor Dennis Finn outlined the reasons for supporting the establishment of the Centre.
These included:
The Centre is supported by Government, with funding of $7 million.
SPARC's preferred location for this national facility is the Waipa District.
It will bring new people and business to the district.
It will add to Waipa's reputation as a hub of sporting excellence.
Less than 6% of the cost of building the Centre will come from Waipa ratepayers
The centre and its programmes will be accessible for the general public.
It will help promote cycling for health and wellbeing.
The release of funding will be subject to an agreement, which will include the timing of funding and the Trust having adequate insurance in place.
ENDS
For more information, please contact:
Ross McNeil
Group Manager - Planning & Community Relations / Deputy Chief Executive
Ph: 07 872 0056 or 027 572 0056
Email: ross.mcneil@waipadc.govt.nz
