Council shortfall if $22m rugby land sale fails

A financial shortfall may scupper the Whangarei District Council's stated intent to hold expenditure 2009-2010 at $130 million, if the proposed $22.1 million sale of the Whangarei Old Boys' Rugby Football Club land falls through.
Warwick Syers, chairman of the WDC's finance and support committee, said at a committee meeting yesterday that proceeds had been factored into the 2009-2010 financial projections in the Long Term Council Community Plan.
"If the sale doesn't proceed, we will have a problem," he said.
The council had faced additional expenses from flood repairs and much lower income from development levies because of the recession.
The proposed sale was an opportunity to make up the shortfall but was by no means "a done deal".
Mr Syers later said  if the sale did not proceed, the council had other properties potentially suitable for sale.
"We have a rationalisation programme under way for council properties - it's an on-going process of selling what we don't need and buying what we do need," he said.
Other actions could include deferring capital expenditure "or we may have to relent on our policy of not incurring more debt and possibly borrow another $5-10m", he said.
 The offer for the 5.8ha block occupied by the Old Boys' Rugby Football Club has come from BWH Properties, a consortium headed by former Whangarei district councillor Wayne Hill of Hill Construction. Under the proposed agreement the council would relocate the club's buildings and have the right to all the earth removed  during site preparation for a shopping complex.
Cr Syers confirmed yesterday that the site would have to be lowered.
The earth would be used for site preparation for the lower harbour crossing.
Submissions closed on the proposed sale on July 24, with 54 against 30 in favour and three asking for changes to the proposal.
The final decision will go before the full council after a deliberation meeting.