Tauranga City Council has decided to honour a "gentleman's agreement" and write off debt totalling $37,000 racked up by the Pacific Hope medical missions ship.
Marine Reach Ministries had been paying about half the normal fee for its berth at Sulphur Point's Bridge Wharf.
The discount was never ratified by the council and followed informal discussions last year in which Mayor Stuart Crosby acted as an intermediary between Marine Reach and council staff. Mr Crosby was the patron of Marine Reach.
"The outcome of this was an informal agreement between the council and Pacific Hope to locate partly on the berth, with the remaining length of the boat tied to mooring piles," councillors were told yesterday.
It was agreed to write off the $37,000 debt to the end of this month and to allow the discount to continue to April 30 - approaching the time when the ship's refit was due to be completed. Based on past payments, the total discount will reach nearly $48,000.