Further support in principle has been confirmed by the Central Otago District Council for the proposed Roxburgh Gorge and Clutha Gold cycle trails.
Council business development manager Jonathan Gadd presented a report to the district development committee this week, highlighting options in relation to the trails.
The trails were among 13 to receive initial government funding from 54 concept trails nationwide as part of the New Zealand Cycle Trail Project.
If both trails were approved for construction, $5.8 million of government funding would be provided towards the estimated total construction cost of $8.5 million.
Mr Gadd recommended the committee support both proposed trails in principle, which included an agreement to underwrite their annual maintenance costs until a time when that was no longer deemed necessary.
About $60,000 was needed to complete a feasibility study for the Roxburgh Gorge Trail, and Mr Gadd recommended the committee also agree to provide up to $45,000 of the cost.
A full feasibility study and business plan for the Clutha Gold Trail was almost complete, so did not need the council's help.
The committee members resolved to approve all Mr Gadd's recommendations.
The council's backing would provide some confidence for the Government at this stage, although actual requests for maintenance or feasibility costs would have to be formally presented to the council.
It was estimated maintenance for each trail would be between $50,000 and $150,000 a year.
Mr Gadd said it was unlikely any costs would have to be realised before the 2011-12 year.
Both trails were intended to be self-sustaining in the long run, and would contribute an estimated $3.5 million in annual gross domestic profit throughout Central Otago, Mr Gadd said.
The Otago Central Rail Trail generated as much each year, and provided about 75 equivalent full-time jobs, he said.
"The addition of 100km of cycleway linking directly to the Otago Central Rail Trail has the potential to double the user numbers of cycle trail riders to Central Otago, as well as creating new opportunities for walking, and will benefit all communities along the existing and new trails," Mr Gadd's report stated.
He proposed rates should be at a district level if the council agreed to provide financial support.
Underwriting of $150,000 would raise the district rate components by about $12 a year for the 12,330 ratepayers.
Committee member John Lane questioned whether the rate increase should be district-wide, as the trails were not within the Cromwell or Maniototo wards.
Mr Gadd said benefits would flow throughout the district, and without financial help from all ratepayers, supporting both trails would not be sustainable.
He said without the council's support, it was unlikely either trail could progress to construction.
"Central Otago has the opportunity to obtain nearly $6 million in government funding to assist in the construction of the two trails. This will not happen without the assistance requested now and the ongoing support and expertise of council officers and elected members," Mr Gadd said.
ALONG THE RIVER
• Roxburgh Gorge Trail: 33km cycleway along the true right of the Clutha River between Alexandra and the Roxburgh dam, linking at either end to the Otago Central Rail Trail and proposed Clutha Gold Trail.
• Clutha Gold Trail: 73km cycleway along the true left of the Clutha River between the Roxburgh dam and Lawrence, linking at Roxburgh to the proposed Roxburgh Gorge Trail.
