The Christchurch City Council will this morning meet to discuss and vote on whether it will sign a fixed-price contract to build a controversial multi-use stadium.
In 2010 and 2011 the Christchurch quakes irreparably damaged AMI Stadium - formerly Lancaster Park.
The plan to create a covered multi-use arena was put forward by a Government panel in 2012.
That plan detailed how local and central government would foot the bill.
The projected cost was $470 million.
But that increased to $533m and in recent months the CCC announced the budget had blown out to $683m.
The $150m increase - blamed on rising international costs in materials and construction.
- sparked a public consultation last month and more than 30,000 people made submissions.
Of those, 77 per cent of people were in favour of meeting the extra costs.
A further 8 per cent supported a pause and re-evaluate approach and 15 per cent wanted a complete halt to the stadium's construction.
Councillors were given detailed information about the new fixed price contract and the design and construction submission this week.
At today's meeting, starting at 10am, they will vote on three options: to invest the additional $150m to enable the build to continue as planned and sign the fixed price contract; to pause and re-evaluate Te Kaha or to stop the project altogether.
Te Kaha Project Delivery Limited chairman Barry Bragg said on Tuesday that the fixed price contract had been "thoroughly reviewed" and independent legal advice had been sought.
The board recommended the council sign the contract.
"That figure includes sufficient contingency to cover any issues that might emerge during the build," he said.
"The fixed price means that if the council decides on Thursday it wants to proceed, ratepayers will be protected from any further cost increases."
Bragg said assuming the CCC borrowed the additional money, rates would need to increase by a net 1.24 per cent.
"Overall, building the arena will cost the average residential property $144 a year between 2025 and 2027," Bragg explained.
"After then, the amount they will need to pay will decrease slowly over 30 years as the debt is repaid."
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The report also revealed that if the CCC voted to stop the project there would be $40 million in "sunk costs that it will be unable to recover".
The CCC may then also be liable for further costs.
The report also looks at the implications of pausing and re-evaluating the project.
It states that with prices likely to continue to rise, a delay would "not bring the cost down".
It said the cost could only be reduced by "making significant changes to the arena's scope and size".
Te Kaha will have a capacity of 30,000 and will be used not only for sports matches but concerts, trade shows and expos.
Last year, the council decided to slash the stadium's capacity by 5000 to 25,000 in response to the rising cost - then did a U-turn after a public outcry.
Today's council meeting and vote will begin at 10am and will be live-streamed via herald.co.nz
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