The planned Otago Stadium has received a boost at today's extraordinary Dunedin City Council meeting, with confirmation the Government's $15 million contribution will come as a grant.
However, the grant would come "with the expectation that the stadium will be completed and available for the Rugby World Cup 2011", Mr McCully's letter said.
The new details came before councillors began working their way through a 10-point list of recommendations, including one asking councillors to decide whether or not to approve the signing of a guaranteed maximum price (GMP) contract with Hawkins Construction.
A vote is expected shortly.
Councillors also heard Stop the Stadium's application for an injunction to stop the signing of the construction contract would be the subject of a High Court hearing in Christchurch on Thursday.
A vote in favour of approving the construction contract today would be conditional on a favourable outcome at that hearing, which is expected to begin at midday, councillors heard.
Earlier, Mayor Peter Chin held a press conference and said the council had agreed to three resolutions.
They were that the council:
1. Notes Stop the Stadium has on April 17 filed proceedings against the Dunedin City Council for an interim injunction in respect to the stadium project.
2. Resolved to defend the proceedings with urgency and instructs the chief executive to work with the council's legal advisers and, if appropriate, to instruct Queen's Council to represent the council.
3. Nothwithstanding the proceedings, confirms its commitment to resolution 7 of it meeting on February 9.
Resolution 7 states that the council commits to the project.
Asked if the council could sign the contract while the outcome of the injunction was still unknown, he said he understood the council could go ahead, and he was confident a decision would be made.
He had received advice on how long any legal process would take, but would not tell reporters.
"The matter is before the court. That's where it should stay."
Mr Chin said the interim injunction "may not" hold up the stadium.
The Otago Daily Times understands the council has received advice about the implications of not agreeing to sign the stadium construction contract today, which is the last day Hawkins Construction's offer remains on the table, but are still considering how to respond.
Legal advice has been that injunction proceedings could take anywhere from two to eight weeks to resolve.
The basis for the court action is that the stadium project has changed sufficiently to require the council to again consult the public through the annual plan.
