The Dunedin City Council learned earlier this year its bid for $132.5 million from the Treasury’s National Resilience Plan to buy at-risk properties or sites to convert into flood mitigation systems in the suburb would not go ahead.
Council chief executive Sandy Graham said a new government fund, previously touted as a possible financing alternative, also appeared inappropriate for the council’s plans.
When the government decision to turn down the council’s application to the Treasury became public last week, Ms Graham said discussions continued with the government, including whether the council could apply to the new $1.2 billion Regional Infrastructure Fund (RIF).
At the start of this week, Regional Development Minister Shane Jones called for applications for the fund, detailing its intent and eligibility criteria for the first time.
Ms Graham said the council was still "working through the details and implications".
"However, the RIF eligibility criteria appear to exclude purchase of land, meaning council will need to consider how best to pursue any funding support for housing.
"We understand the fund will predominantly comprise loan and equity funding, rather than grants.
"Therefore, we would need to carefully consider the budgetary implications in applying for such funding.
"We will continue to work regionally to identify opportunities."
Now that details of the fund had been released, council staff would hold further discussions with councillors, ministers and the Ministry of Business, Innovation and Employment (MBIE) as "a suite" of potential projects was reviewed.
In a statement, Mr Jones said the fund would focus on either "resilience infrastructure" to improve a region’s "ability to absorb, adapt and respond to stresses and shocks", and "enabling infrastructure" to make sure regions were well connected and productive.
"We want to invest where it counts.
"That’s why RIF investments will align with these regional priorities, ensure there is regional co-investment and, where possible, leverage existing regional development investments."
In Budget 2024, Mr Jones announced the first projects to be funded through the RIF would be an initial $200m for flood resilience infrastructure, the minister’s statement said.
Of this total, up to $101.1m, along with co-investment from recipients, was committed to 42 flood resilience projects close to being started.
The projects had been identified by local authorities in the "Before the Deluge 2.0" report and were within the RIF criteria, it said.
Otago Regional Council science and resilience general manager Tom Dyer said the council’s continuation of the West Taieri contour channel resilience upgrade was among the 42 projects identified.
However, the council had no intention of applying for further funding at this time.
Central Otago District Council economic development manager Nick Lanham said staff would consider what work might fit the fund criteria and talk to other councils to get "a wider regional view".
Waitaki District Council chief executive Alex Parmley said the council would be considering applications to the RIF, but no final decision had been made.
A similar response was received from Clutha District Council chief executive Steve Hill.
A Queenstown Lakes District Council spokesman said the council did not have any specific proposals to put forward at present "although we’d welcome the opportunity to leverage the fund in the future".
"The RIF proposes a long-term funding model that will benefit from considered investment over time rather than any short-term projects, particularly given the funding basis is loans rather than grants."
An Invercargill City Council spokeswoman said the council intended to apply for funding.
"We are still working on the final details of the projects."
