One report casts doubt on the number of cyclists who will use the facility. Photo / Thinkstock
One report casts doubt on the number of cyclists who will use the facility. Photo / Thinkstock
Two reports have found discrepancies in the Home of Cycling Trust's proposal for a Waikato velodrome.
One is an economic assessment putting the annual benefit to Waikato at $4.9 million - less than half the $11.5 million earlier identified.
The second report, to be considered by the Waikato Regional Councilon Wednesday, casts doubt on the number of cyclists who will use the facility, which could lead to on-going financial support being needed to cover costs.
Regional councillors will on Wednesday consider the Covec economic impact assessment and the Sapere report comparing the velodrome proposal with other indoor velodromes, along with 1026 public submissions, at a full council meeting.
At issue is whether the council will contribute $6 million needed to get the proposed velodrome started.
Lead agency Sparc has set a deadline for the Home of Cycling Trust to secure 80 per cent, or $22.8 million, of the money needed for the project.
It will enter discussions with short-listed bidders Auckland and Palmerston North if the Waikato/Bay of Plenty bid does not deliver. Sparc is contributing $7 million towards the indoor centre.
Covec's economic impact assessment, commissioned by the Waikato Regional Council, found discrepancies between its economic assessment and the initial report by APR Consultants on behalf of the trust.
Covec put the significant differences between the two economic impact assessments down to the Home of Cycling Trust commissioned report ignoring income tax, GST and other leakages from the regional economy when working out the flow on effects.
It also said that there was an incorrect assumption that carded athletes earned $60,000 a year, when the majority received much less.
APR's estimated $11.5 million economic benefit for the indoor velodrome and Bike NZ headquarters was also much higher than Taupo's and Manawatu's bids, which were $1.04 million and $1.51 million respectively.
The Sapere report found the proposed location of the velodrome between Hamilton and Cambridge was a deterrent, as most people would have to travel to get there.
