19 Nov 2008

Eden Park board granted more time over loan

8:07 pm on 19 November 2008

Auckland City Council has approved a request from the Eden Park Trust Board, allowing it to stop repaying the principal on a loan it received.

Eden Park is undergoing redevelopment ahead of the 2011 Rugby World Cup.

The board's loans from the council, amounting to $6.8 million, were due to be fully repaid by 2014, but will now be repaid in 2017.

The decision was made to assist cashflows during the stadium's redevelopment, because of income lost through work on the south and south-west stands.

The board will continue to pay interest during the 30-month principal holiday.

It is set to reduce council cashflows by $2.8 million but the council says that will be offset by increases over the remaining years of the loan.

The Finance and Strategy Committee was told there would be no impact on rates.