Otago regional councillors need to be "generally satisfied" as to the "overall viability and achievability" of Otago Stadium when they make their decision whether or not to fund the Otago Stadium at an extraordinary meeting tomorrow, chief executive Graeme Martin has advised.
Mr Martin outlined two recommendations in a nine-page report to be considered by councillors - the first, for the council not to agree to fund the stadium, and the second, to confirm funding provided the Dunedin City Council and the Government agree to meet the remaining funding shortfall of $43 million.
A deadline for that assurance should be February 20, as the decision had a "direct bearing" on the regional council's next Long Term Council Community Plan, which had to go through an audit and public consultation process and be in place by June 30, Mr Martin said.
The regional council agreed provisionally in June 2008 to contribute up to $37.5 million to the stadium, provided a list of nine conditions were met by the Carisbrook Stadium Trust (CST) by February 2.
Councillors "must take a responsible trustee" approach to the use of council funds and be "generally satisfied" as to the overall viability and achievability of the project as well as its risk profile and benefits, he said in the report written before yesterday's Dunedin City Council meeting.
Mr Martin said several conditions had yet to be met, listing 13 "critical project risks" councillors should consider, including:The guaranteed maximum price providing a "material level of security on costs" but not an unqualified guarantee.
The private fundraising component of the project involving a loan of $24.89 million, plus a $15 million underwrite without interest or repayment provision being offered.
Third party agreements with University of Otago and Otago Rugby Football Union not finalised (when report written).
Community Trust of Otago funding being $3 million lower than first indicated.
No clear Government response on applying any state funding to the stadium project.
Capital and operating projections report was neither up to date nor independently reviewed.
Business plans were unavailable to determine operating viability of Otago Rugby Football Union as key hirer.
Before tomorrow's meeting, as well as having access to non-public information from stakeholder group meetings and CST, councillors also had meetings with the university, football union and CST project delivery personnel.
