Mrs Chadwick said the council dealt with the financing matter confidentially due to commercial sensitivities involved in negotiations under way at the time, but could now confirm a decision to support Mountain Bike Events Ltd for Crankworx Rotorua for the next five years (to 2021).
The amounts are the same agreed to for the three years to 2017.
The council's underwrite for 2015 was $94,000 and for 2016 $39,000 with repayment to be made through profits once the event becomes self-sustaining. Mountain Bike Events has not yet made any repayments.
"I'm confident council's continued support will be a great investment," the mayor said.
"Given the economic benefits more than doubled in the second year, I'm very confident about the ongoing success of this event, along with the benefits it will bring given the worldwide exposure it gets."
Mrs Chadwick said councils had an important role to play in helping to secure events which brought economic benefit and ensuring their success.
"It will be up to Rotorua to make the most of the opportunities this creates to ensure we maximise our investment."
But Rotorua Residents and Ratepayers Association secretary Reynold Macpherson said the association was "alarmed that up to $1 million of rates is now to be gambled on Crankworx".
He said in his view the claimed benefits were "little more than vague estimates".
"We are worried that the council is using rates as corporate welfare."
Meanwhile, other opportunities also needed to be identified and actioned, Mrs Chadwick said.
"The local economy is performing above the national average, unemployment has been dropping and sectors like tourism and retail are doing extremely well with business operators feeling very positive. It's important we keep building on that increased activity.
"Rotorua is a place of interest for businesses and investors from outside the district and people looking to move to the regions. Our population passed 70,000 during 2016 which is a reversal of a decade-long decline pre-2014 so we're a growing, as well as thriving, district," she said.
"However, that's not to say there aren't any challenges or that there's not more to do. With growth and progress come pressures - on infrastructure like roads, on housing stock and accommodation and on service and hospitality sectors so we need to front these."
Early 2017 will see the council "setting a direction aimed at continuing Rotorua's progress", the statement said.
"We need to make sure we're focused on maximising Rotorua's strengths and identifying and acting on opportunities and we'll ask for the community's input in defining those.
"We'll also continue with projects already under way, such as working with our lakes communities on wastewater schemes and ensuring adequate ongoing central government investment in roading."
Encouraging the development of residential and commercial zoned land in Rotorua will also be on the 2017 agenda.
"Council will continue collaborating with government agencies, businesses, developers and the community to deal with challenges and work on projects and initiatives and we'll use new ways to have important conversations with our stakeholders. I'm looking forward to another year of progress for Rotorua."
More about Crankworx (supplied by Rotorua Lakes Council)
What did Council agree to in terms of funding and underwriting Crankworx Rotorua?
To provide $75,000 a year plus underwrite the event, capped at $500,000 spread across 3 years (2015 to 2017).
Council recently agreed to extend its financial support to 2021 ($75,000 a year) and to continue to act as underwriter for that period (capped at $500,000 over the five years).
Any drawdown of funding is to be repaid through profit arising from the event in future years.
How much of the underwrite has been called on in the past two years?
$94,000 in 2015 and $39,000 in 2016
How much has Mountain Bike Ltd paid back to Council?
Nothing to date but repayments will be made once the event becomes self-sustaining.
Why was council decision regarding ongoing support for Crankworx made in confidence?
This was due to commercial sensitivities relating to other potential funders and negotiations under way at that time. While details regarding other funders remain confidential, council is now able to release its decision regarding ongoing support for Crankworx, which was made in October.
Who else is funding Crankworx?
Other funders have committed but will make their own announcements at the appropriate time.
