Council chief executive Clare Hadley confirmed Invercargill Central Ltd had requested the additional funds to make up a shortfall of cash.
She said the matter would be put forward for consultation in the council’s 2020-21 annual plan.
‘‘It would be fair to say that the way which the project is currently structured needs that funding to occur.’’
She added that if both the council and the community said ‘‘no’’, alternatives would have to be looked at.
A report presented to councillors said if the council did not invest more money, the project would not start in June, as expected.
Developers would need to consider seeking funding elsewhere or reduce the scope of the project, it said.
If, after consultation, the council decided to increase the funding, rates would increase 0.7%.
The report says the total forecast rate increase, incorporating all the matters to be consulted, was likely to be greater than 8.1%.
The rates increase forecasted in the long-term plan was 3.1%.
ICC finance and policy chairman Nobby Clark said an increase in rates
should be only be a last resort.
He asked for a report outlining how the $16million would be spent.
‘‘My understanding is ICC is a co-investor of this development, so it’s 50-50.’’
If there was a $21million shortfall, the council should only have to stump up $10.5million, he added.
Mr Clark said he would push the council to investigate other possibilities that would not affect ratepayers, including selling off assets or using invested money.
However, Mrs Hadley said those options too would require consultation with the community.
‘‘Any funding coming from the council comes from the ratepayers. So council would need to ask the ratepayers about their views on investing more money. Whether this money came from rates, selling an asset or any other possibilities that could be identified, would also need to be consulted with the ratepayer. ’’
Mrs Hadley said she was unable to comment as to whether the CBD redevelopment was in jeopardy as the council was ‘‘not delivering the project’’.
‘‘Delivering a project of this size always carries a number of risks.
‘‘Council is seeking to understand what the risks are and how to mitigate those.’’
Last year, property manager Gaire Thompson filed an injunction in the High Court at Christchurch, delaying the demolition which marked the start of the project.
Justice David Gendall dismissed the injunction in January but Mr Thompson still had the option to take other avenues, including a substantive hearing to determine whether the Invercargill City Council should have publicly notified amendments to HWCP Management’s resource consent.
Mr Thompson confirmed yesterday the legal process was ‘‘ongoing’’, but said he could not comment further as the matter was before the courts.
Invercargill Central Ltd director Scott O’Donnell declined to comment.
