Ratepayers lined up to foot bill for Eden Park revamp

The proponents of a $320 million revamp of Eden Park for the 2011 Rugby World Cup are looking to Auckland ratepayers to pay the lion's share.

Eden Park development committee chairman Rob Fisher said yesterday that $54 million was committed to the project and the committee would be looking locally to raise much of the remaining $266 million.

The $54 million included an undertaking from the Eden Park Trust Board to extend the ASB Stand to where the run-down Panasonic Stand is now, plus $20 million from the Government and $10 million from the New Zealand Rugby Union.

Mr Fisher said there was interest from the private sector for things such as corporate boxes and fund-raising sources like community trusts and lottery grants, but it "might end up" that local and regional ratepayers were asked to meet much of the shortfall.

He said Auckland would benefit "year-in, year-out" from the 47,500-seat stadium being expanded to 60,000 seats for the Rugby World Cup.

Research showed that last year's Lions rugby tour poured $53 million into the regional economy and the Rugby World Cup had an estimated benefit of $250 million, he said.

Until now, the committee had been focused on redesigning Eden Park for the Rugby World Cup and plumping for the "legacy" option, which went for permanent improvements instead of temporary seating for the tournament.

Mr Fisher said it was time to develop a funding strategy, saying the committee would like to "know where we are by the end of this year".

Auckland City Mayor Dick Hubbard said he wanted to get the parties together around the table to discuss funding and other issues with the upgrade.

Talks were also needed between the council and Government about infrastructure priorities for the Rugby World Cup, such as transport and a convention centre, he said.

The council has earmarked $100 million in its 10-year plan towards "international facilities" such as Eden Park and/or a convention centre.

Mr Hubbard said he did not want to put a figure on how much Auckland ratepayers should contribute to Eden Park, but refused to rule out making a contribution of $100 million or more.

One councillor, Neil Abel, said it was "fair and reasonable" for ratepayers to support the Rugby World Cup to the tune of about $60 million but not $100 million-plus.

ARC chairman Mike Lee said the regional body's role should be limited to improving public transport, saying the ARC was not in a financial position to contribute to Eden Park. The Rugby World Cup was an opportunity to make a "quantum leap" upgrading public transport, ideally providing electrified rail on the western line to Eden Park, he said.

Manukau and North Shore councils said they had not been approached to make a contribution to Eden Park and had no intention of giving money.

Mr Hubbard said that if Auckland City put lots of money into Eden Park it would be appropriate to change the governance structure of Eden Park from private to public ownership.

Asked whether that could lead to ratepayers owning a white elephant, he said: "We have absolutely no intention of lumbering anyone with a white elephant in any shape or form."

Eden Park is largely self-funding. It received a $10 million council loan in 1988 towards a $100 million grandstand and floodlight development.

The board received cheap interest for five years at a cost of $650,000 before the loan reverted to a commercial interest rate.

The Minister for the Rugby World Cup, Trevor Mallard, said he had not been approached by the Eden Park development committee for more money towards the revamp. The Government had given $20 million at the time of the bid to host the 2011 event, he said.

A spokesman for the New Zealand Rugby Union said it had not been approached by the development committee to increase the $10 million commitment it made at the time of the bid.


FORKING OUT

Auckland City ratepayer contributions:

* Vector Arena $68m.

* Art gallery upgrade $25m.

* New swimming pools $20.4m.

* Restoring Pah Homestead $5m.

* Town hall organ upgrade $3m.

* Blake Memorial $2m.

* Eden Park …?