A trade-off could see the Tauranga City Council get rid of its $60 million Route K debt in exchange for taking ownership of Turret Rd and 15th Ave.
The council and the New Zealand Transport Agency are trying to hammer out a deal in which Turret Rd and 15th Ave could switch from a Government highway to a council-controlled local road, including the Turret Rd bridge. If agreement was reached, the council would take over responsibility to four-lane the bridge, Turret Rd and 15th Ave to Cameron Rd as part of the $100 million Hairini Link project.
Route K's debt has steadily grown over the years to the point where it is now a significant part of the council's overall debt of $400 million. About $2 million was added every year because the revenue from tolls fell well short of the amount needed to service the debt on the road. The long rumoured trade-off was confirmed by Mayor Stuart Crosby when he was quizzed about comments made in a newspaper column. The council and agency was looking at all the options and there may well be a trade-off, he said.
His preference was for the Government to take on Route K and its debt and to assist the council to widen Turret Rd and 15th Ave if it became a local road.
But the agency had made it clear that it did not have the extra cash to take over a $60 million debt and the council was now "seriously considering" approaching Treasury for special funding.