Auckland Council’s Finance and Performance Committee has today agreed to take over a $40 million loan from ASB Bank to Eden Park Trust and to grant the organisation up to $9.8 million over a three-year period to fund a capital renewal programme for the stadium.
Under the terms of a loan guarantee with ASB Bank due to expire on 30 September 2019, the council had no option but to pay out on the guarantee or take over the $40 million loan in due course, and provision had already been made in the council’s budget for this.
Eden Park Trust has other facilities with ASB Bank, including a $7 million working capital facility and a $500k overdraft facility. Auckland Council also has a direct loan to Eden Park Trust of $6.5 million, dating back to July 1999.
“We are pleased to have reached a resolution for the Eden Park Trust Board which will allow them to carry out crucial maintenance work and enable the stadium to continue to host major international sporting events, concerts and community events.” - Finance and Performance Committee Chair Councillor Ross Clow.
Taking over all loan facilities and consolidating them with the existing Auckland Council loan into one facility provides the advantage of simplifying both the loan structure, security and other terms. The amount of the loan facility would be up to $53.5 million.
Although the council has no legal obligation to provide funding to Eden Park Trust, the stadium is a significant asset to Auckland which generates substantial economic benefit for the region and contributes to Aucklanders’ quality of life through the events and facilities offered. As a charitable trust which exists to provide facilities for sporting, recreational and cultural events for the benefit of the public, it is similar to other organisations that council funds.
The committee also agreed that the chief executives of Auckland Council, Eden Park Trust and Regional Facilities Auckland jointly prepare an operational partnering proposal to be completed by March 2020.
Other resolutions invited Eden Park Trust Board to report to the Finance and Performance Committee on at least a six-monthly basis to outline its performance and financial projections, and to initiate discussions with the Government to seek an amendment to the Eden Park Trust Deed to appropriately align the governance of Eden Park with funding.
