The report recommended a timely decision be made on endorsing the business case and moving to the next design and fundraising phase in order to apply for $3.5 million in funding from the Lottery Grants Board Significant Projects Fund, which closes on March 15 this year.
"A decision on whether to proceed with the next stage of the project is therefore required before that date if application is to be made and funding sought," the report said.
It added that the council had been informed by The Giblin Group, which was tasked with creating a Revenue Generation Strategy, that based on previous funding decisions, it was likely that the facility incorporating a velodrome would meet this test, but it was almost certain that a facility without a velodrome would fail the test.
No other external funders had been identified that could provide such a significant contribution.
The council consulted on the original velodrome proposal as part of the 2015/25 Long Term Plan process and feedback on the proposed investment in a velodrome was largely supportive, the report said.
It noted there had been community concern that the cycling-specific focus was too narrow, and submitters wanted a facility that was more versatile and able to meet a wider range of prospective users.
The business case design was said to cover that off with scope to host not only cycling, but also basketball, futsal and volleyball - codes it said were poised to grow should an appropriate facility be available.
The council will debate tomorrow whether or not to proceed with the next stage of the project, or conduct more consultation and analysis, which would put the Lottery Grants Board funding at risk.
The final vote will be made at an extraordinary meeting on March 8.