Banks upbeat on Eden Park bill

Eden Park's development is costing $256 million. Photo / Supplied

Auckland City Mayor John Banks is quietly confident of keeping an election promise not to put a cent of ratepayers' money into the $256 million upgrade of Eden Park.

Council officers are poring over a business plan from the guardians of Eden Park asking Auckland ratepayers to underwrite a $40 million shortfall for the redevelopment predicated on the Rugby World Cup.

Mr Banks said the word was that the business plan was robust and the Eden Park Trust Board would be able to raise enough money from sponsorship and membership programmes, topped up with a loan the board can service, to meet the shortfall.

This would be a political relief for Mr Banks, who does not want to break an important election promise while campaigning to be the first mayor of the Super City.

At the 2007 local body elections, he received strong support for a promise not to put a cent of ratepayers' money into the Eden Park upgrade and to limit council spending on street and other works around the sportsground.

Trust board chairman John Waller was confident of the business plan, containing 10-year projections, and hoped it would find favour with the council.

At the height of the waterfront stadium debate in 2006, the trust board undertook to raise $65 million for a $320 million design it was then promoting by way of a $17.5 million loan and $47.5 million from sponsorship sales and other sources.

"Eden Park has a sustainable business plan and will not require ongoing operating support or subsidisation from central or local government," Eden Park development committee chairman Rob Fisher said at the time.

The board had to ask Auckland councils to underwrite a $40 million shortfall because, Mr Waller said, "the banks won't lend because the park can't service it".

Yesterday, he said work on selling corporate boxes and finding sponsors to meet the shortfall was accelerating.

In February, Auckland's mayors agreed to underwrite the $40 million to allow completion of the redevelopment after the Government said its $190 million contribution was final.

Contributions from the NZ Rugby Union, ($10 million), Auckland Regional Council ($10 million) and ASB Community Trust ($6 million) complete the funding package.

Auckland City finance general manager Andrew McKenzie said officers had received the business plan from the trust board and asked for some further information.

He said officers were to report on the business plan to this month's finance committee and make as much of the plan public as possible.