The Otago Rugby Football Union (ORFU) has been given another extension to pay a $2 million loan to the Dunedin City Council, an Official Information Act request has revealed.
But the Otago Daily Times' request to the council for all available documentation related to the loan has been declined, "on the basis that to release the information would be likely to unreasonably prejudice the commercial position of the ORFU or the council".
The council's response has made a connection between the loan and the future of Carisbrook, or the new stadium in Awatea St.
The 10-year loan was drawn down in 1997 to rebuild the Railway Stand at Carisbrook and the ORFU has been making interest-only repayments.
Questions have been raised about the ORFU's ability to be an anchor tenant at the Awatea St stadium, considering its inability to repay the loan and its $1.5 million loss for the last financial year.
Council governance team leader Nina Darling said in her response to the request for information about the status of the loan that the council had decided not to release non-public minutes from the council's finance and strategy committee meeting of March 17, when the issue was discussed.
But she could say the council and the ORFU had "reviewed their arrangements in connection with the union's current and future location".
"Those arrangements included a review of the terms of the loan of $2 million from the council to the ORFU, which expired on November 30, 2007.
"The council has agreed to extend the term of the loan on the same conditions until June 30, 2009.
"By this date, it is expected that matters relating to the future occupation of Carisbrook and the new stadium will have been resolved."
The ORFU has indicated it no longer wants to own Carisbrook whether or not the new stadium goes ahead.
