INDEPENDENT NEWS

Eden Park to get facelift funds

Published: Fri 24 May 2002 12:20 AM
MEDIA RELEASE
May 23, 2002
Eden Park to get facelift funds
The Auckland City Council will make funds available so that improvements can go ahead at Eden Park.
The council has decided not to review a decision made in February to lend the Eden Park trust board $2 million. This is in spite of the fact that Eden Park will no longer host World Cup rugby matches.
The Finance and Corporate Business Committee gave approval for the board to redraw money paid back under the terms of council’s $10 million loan set up in 1999.
The board asked for the additional funds to put towards to the $4 million cost of reconstructing the No 1 field at Eden Park.
The chairperson of the Finance and Corporate Business Committee, Councillor Douglas Armstrong says, "Irrespective of losing the World Cup sub-hosting responsibilities, the fact remains there is still a need to reconstruct the No 1 ground. Auckland City has a responsibility to ensure that we have sporting venues of an international standard if we are to compete with other New Zealand venues and internationally.”
The original $10 million loan to the Eden Park Trust Board was drawn in July 1999. Since then the board has, according to the terms of the loan, repaid nearly $2 million of principle and interest, and it is this amount that the board wants to redraw.
Councillor Armstrong says the interest payable on the redrawn loan is at a rate of 0.45 per cent above the 90-day bill rate and the loan is more than adequately covered by security.
"The trust's record of repayment is excellent. All payments have been made in full and on time. In addition, the trust board has consistently repaid more than the minimum repayment requirements stated in the loan agreement."
Councillor Armstrong also says the fact that $2 million is being lent to Eden Park will not have any impact on the council's ability to consider other applications for council funding.
"There is adequate funding in the council's loan pool to enable the council to consider other applications for assistance," he says.
ENDS

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