Plans for a new stadium in Dunedin have suffered an unexpected blow, with the city council's chief executive recommending councillors either abandon it immediately or wait for the possibility of a Government bail-out.
In his report to councillors, chief executive Jim Harland says the project faces a shortfall of up to $35 million.
He says it is already $7.7 million over budget because of additional costs incurred acquiring land for the stadium to be built on.
The report advises councillors that there are a high number of uncertainties in the development.
Mr Harland says the major areas of risk relate to future private sector funding, and whether any Government support will be forthcoming.
The council meets on Monday to evaluate the planned stadium's future, having already spent about $50 million on the project.
Meanwhile, Mayor Peter Chin says he has yet to receive a response to a letter requesting Government funding for the stadium.
The letter, signed by Mr Chin and Otago Regional Council chairman Stephen Cairns, requested an undisclosed sum from Finance Minister Bill English.
Mr Chin says he sent the letter in December.