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If the New Zealand Sports Hall of Fame is to leave Dunedin, city councillors wish it well for setting up at its next home.

Negotiations have been proceeding with a party outside Dunedin to establish a modern, interactive facility and hall of fame, and chairman Stuart McLauchlan said this week discussions had been going well.

Several councillors said they were saddened by the potential departure of the hall.

Cr Jules Radich said it could be good news for sustaining the collection of memorabilia, but a loss for Dunedin.

Cr Andrew Whiley said he understood the party in negotiations with the hall appreciated its importance and was well organised.

The situation was "sad for Dunedin, but great for them".

The hall has had a council-subsidised existence at the Dunedin Railway Station since 1999, showcasing memorabilia such as New Zealand’s first Olympics gold medal, won by boxer Ted Morgan in 1928, but it has operated within a constrained budget.

Doubts grew about the station’s suitability as a long-term home and the hall has been weighing options for the future.

All city councillors present at a meeting in September last year voted to stay out of an expressions-of-interest process for hosting the hall.

It is understood Cambridge, in Waikato, has emerged as the frontrunner.

Dunedin Mayor Aaron Hawkins said participating in the expressions-of-interest process would have led to the council "redeveloping the facility ourselves".

"It’s still my view that we should prioritise the adequate funding of our existing institutions over setting up new ones."

The council would have been comfortable supporting a community-led drive to develop a suitable facility.

Cr Lee Vandervis suggested the beginnings of such a drive had seemed to be under way, but council leadership had been inadequate.

"The opportunity to bring together Ron Palenski’s extraordinary sports hall of fame memorabilia and Sir Ian Taylor’s cutting-edge sports interactive technology along with significant seed funding from Sir Eion Edgar should have resulted in a world-class sports hall of fame highlighting New Zealand’s incredible sports achievements and Dunedin’s technical innovation."

Cr Carmen Houlahan said she would have liked to have seen a presentation by Sir Ian before councillors voted.

Cr Rachel Elder said Covid-19 had presented a huge challenge to all of Dunedin’s cultural facilities, affecting visitor numbers.

Dunedin was blessed with some of the best cultural and community assets of any city in New Zealand with the Otago Museum, Toitu Otago Settlers Museum, Dunedin Public Art Gallery, Olveston Historic Home and Forsyth Barr Stadium, she said.

The budget could not stretch to taking on the hall of fame, she said.

Cr Sophie Barker said losing the hall of fame would be a dent in the city’s heritage fabric.

She recalled a tight timeline for signing up to the expressions-of-interest process and said doing so would have been difficult.

Cr Barker, who has a background in tourism, had repeatedly asked the hall how she might be of assistance.

Cr Whiley said that, on reflection, the council should have taken part in the expressions-of-interest process.

He believed the council had not fought hard enough to keep the hall in the city.

Other pressures faced by the council last year related to rising rates and debt levels and keeping Dunedin Railways on track.

Cr Vandervis said the rail operation was essentially making losses annually even during the good times of passengers flowing from the lucrative cruise-ship market.

grant.miller@odt.co.nz