Council to take on $30m debt for North Harbour Stadium

North Harbour Stadium's $30 million of loans will be taken on by the North Shore City Council in a bid to help it compete for sport and entertainment events.

But in agreeing to a ratepayers' bail-out of the landmark Albany stadium, the council last night voted to impose financial controls to avoid any further calls.

Since opening in 1997, the stadium has been run by a trust, and chairman Reno Wijnstok sought an interest-free loan so it could repay bank loans as soon as possible.

Although it makes a profit, he said, the trust could not afford to repay loans when they fell due and loans were accruing interest at 8.75 per cent.

Councillor Gary Holmes said taking over the stadium's loans now would save more than $8 million interest over a 30-year loan period.

"Why would we not want to do that to save the ratepayer money?"

But Andrew Eaglen said the council would have to borrow to cover the move and it would mean higher city rates up to 2018.

"I don't believe we have a mandate for doing it."

The council also agreed to forgive its own loans to the trust, though it wants the trust deed and lease agreement changed to let it vet any more borrowing by the trust.

It also wants to increase lease charges if the trust's finances improve.

Mr Wijnstok acknowledged councillors' reluctance to continue to accept legal obligations as guarantor to stand in for the trust and make repayments.

He said profits went into keeping up standards to allow the stadium to compete for events against the Auckland Regional Council's upgraded Mt Smart Stadium and Hamilton's modern Waikato Stadium.

Trustees felt that the trust deed and lease agreement must allow development of an international stadium of regional importance.

Mr Wijnstok told the Herald the request was a "catch-up".

The trust had set out to build a stadium with $6 million from the council but had been saddled with large loans to pay off, instead of the significant council support enjoyed by stadiums elsewhere in the country.

It was now a "terrific asset", with a replacement value of $60 million.

Mr Wijnstok saw a bright future for a "boutique stadium" serving a wide range of events.

There was a prospect of hosting a quarter-final in the Rugby World Cup in 20011.

"The stadium is probably the busiest in the country in terms of the number of activities," said Mr Wijnstok.

"We have made tremendous progress in five years with our events calendar and the function centre."