11 Feb 2009

Regional council confirms funding for Dunedin stadium

6:20 pm on 11 February 2009

The Otago Regional Council has voted to confirm provisional funding of $37.5 million for the planned development of a new stadium for Dunedin.

The plan is to replace Carisbrook with an enclosed multi-purpose stadium that promoters say could stage everything - from sports events to rock concerts.

On Monday, the Dunedin City Council voted 10-5 to continue with the $198 million Awatea Street stadium development.

The regional council's contribution comes with several conditions, including that the city council be responsible for $85 million of funding for the project.

It also wants an assurance of a capital contribution of $15 million from the Government or other sources to make up for a shortfall in private sector capital funding.

The cost of the stadium is now $10 million more than when it was first mooted.

The project is already $7.7 million over budget. Dunedin City Council chief executive Jim Harland says the total shortfall could be as high as $35 million.

Carisbrook Stadium Trust chairman Malcolm Farry says the funding commitment from the Dunedin City council will inspire investor confidence in the project, and enable the trust to get better prices from contractors.