Councillors at yesterday's long-term plan meeting voted against adding funding for the lights to the council's 10-year budget - for now, at least - amid concerns about a lack of information.
The decision followed a request from the Otago Cricket Association (OCA) for ratepayers to cover about $2 million of the cost over the next three years.
Most councillors voiced support for the project, citing economic and social benefits, but they were not prepared to pay without more information and more money from other partners.
That was despite a warning from Cr Neville Peat, who feared delays could cost the venue top-flight international cricket fixtures.
However, Mayor Dave Cull was blunt in his assessment of the ''half-baked'' proposal, saying it would be irresponsible for the council to fund it at this stage.
''We are being asked to provide almost all of this and I think that is excessive,'' he said.
Instead, councillors voted to include the proposal in the LTP budget as an unfunded item only, allowing the public to have their say on the proposal.
Council staff would now seek more information about costs and the impact on rates, while the OCA was asked to review its contribution and consider other potential funding partners.
An updated report could be considered by councillors by May, before the LTP was signed off, councillors heard.
OCA chief executive Ross Dykes declined to comment yesterday, saying he was yet to hear from the council about its decision.
Yesterday's debate came after the OCA approached the council late last year seeking help to cover the cost of installing permanent floodlights at the oval before the end of the year.
That would help the venue secure a larger slice of New Zealand Cricket's (NZC) inbound tour programme - featuring three tours each by India, England and Australia - over the next eight years.
The lights were expected to cost about $2.5 million, and would be bought initially by the association, which planned to fundraise up to $500,000 and borrow the rest.
However, the council would then be asked to buy the lights from the association over the next three years, and pay for their upkeep, while the OCA made interest-only payments and took a ''rent holiday'' from fees for the use of the DCC-owned ground.
The $2 million paid by the council to buy the lights would be used by the association to repay its original loan.
In return, the association would ask NZC to guarantee ''adequate'' international cricket at the venue over the next seven years, boosting the city's profile and economy.
Cr Peat told yesterday's long-term plan meeting the potential economic benefits of securing matches against Australia, India and England meant the investment was about ''more than just supporting cricket''.
Floodlights would position the University Oval as the only venue in the South Island capable of hosting day-night cricket, securing matches that boosted the city's visitor nights and tourist sector.
The city had ''missed a trick'' by not doing more to promote itself during the Black Caps' two one-day internationals in Dunedin in recent days, he believed.
The city now had only a ''narrow window of opportunity'' to complete the project before the end of the year and secure that advantage.
''Any kind of hesitation ... may count against Dunedin,'' he said.
However, Cr Peat won support from only Crs John Bezett and Andrew Whiley.
Other councillors agreed with Cr Richard Thomson, who said he was a ''cricket tragic'' but could not yet support the proposal.
He accepted lights were needed but did not agree the council should cover almost all of the cost.
More time was also needed to better understand the cost implications, and for others - including NZC - to consider a contribution.
NZC was promoting night cricket to boost its own revenue, so it had ''to invest in that, too'', Cr Thomson said.
Mr Cull agreed, saying a ''consortium of support'' was needed to fund the lights.
''The main beneficiary of lights is cricket and the broadcasters ... this whole proposal needs to be reshaped and put more of the cost where the benefits are likely to fall.''
