AUCKLAND CITY COUNCIL

MEDIA RELEASE

21 September 2007

Council committed to Eden Park

Auckland City Council last night agreed it will make a conditional funding commitment of around $30 million to the redevelopment of Eden Park to ensure both the success of the 2011 Rugby World Cup and to deliver enduring benefits for the city.

The council also earmarked $20 million for stadium design, and amenity and transport improvements that will make the stadium a “better neighbour” for nearby residents and provide long-term benefits for the city.

The council has been discussing a conditional funding package with the government and the Eden Park Redevelopment Board. The package is made up of three components.

The first component is a direct contribution of about $21 million toward the stadium redevelopment. The council will only provide this funding if the Auckland Regional Council (ARC) makes a matching contribution as both the Rugby World Cup and the enhanced Eden Park stadium will provide major benefits to the whole Auckland region.

The second component is the write-off of about $9 million in existing debt owed to the council by the Eden Park Trust Board. This will help to ensure the long-term viability of this important facility. This debt will not be written off until the ARC makes its matching contribution of $21 million.

The final component is the contribution of $20 million towards stadium design, and amenity and transport improvements in the immediate vicinity of the park. These are aimed at improving both the aesthetics of the stadium and its usefulness for the local community and the city.

All three components are also conditional on the design quality of the redevelopment, as well as various governance arrangements and the trust board’s financial viability post construction.

Councillor Richard Northey, chairperson of the Economic Development and Sustainable Business Committee, says that the council recognises it has a role to play

“We want to contribute to the redevelopment to ensure the revamped stadium is sensitive to, and appropriate for, its neighbourhood.

“We are also conscious that this is an opportunity to ensure the stadium maximises its value for a range of major events. Events like the Rugby World Cup are a chance for Auckland to shine on the world stage and to reap major benefits to our reputation, quality of life and economy,” he says.

“Additional jobs, investment and overseas visitors as well as the buzz during and after the Rugby World Cup are all worth making a contribution towards.”

Mr Northey added that due to the clear regional nature of the benefits from this asset, the council felt that the ARC should also make a financial contribution.

Mayor Dick Hubbard says that he is confident the outcome will be a splendid result for Auckland, with the council’s ratepayers contributing appropriately to a stadium that will benefit the city now and into the future.

“We have signalled in our long-term plan that there’s a need for significant investment in international facilities,” says Mayor Hubbard.

“The Rugby World Cup and the development of the stadium will underscore the council’s support for major events in New Zealand’s only true international city.”

Ends

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