Endowment fund may be used for centre

An artist's impression of the proposed $1.78 million Arrowtown Community and Sports Centre...
An artist's impression of the proposed $1.78 million Arrowtown Community and Sports Centre planned for Jack Reid Park. Image supplied.
The Arrowtown Endowment Fund could be used to assist funding the proposed $1.78 million Arrowtown Community and Sports Centre (ASCS), a report to the Queenstown Lakes District Council says.

At its full meeting in Wanaka on Tuesday, the council will consider options for funding the centre at Jack Reid Park, which would replace the buildings now used as the Arrowtown Rugby clubrooms and would include an upgrade of the turf, including moving the rugby field.

The council resolved in August to support a financial contribution in principle and had since refined the proposal and established the level of support among Arrowtown community groups.

Operations general manager Ruth Stokes said in her report funding sought from the council had risen to $700,000, including a contribution to the building and relocating the rugby ground.

The total direct cost to the council was estimated at $110,000, comprising $35,000 to relocate the rugby field, $25,000 to replace the Suffolk St car park with a grass training pitch, $30,000 to remove existing buildings and do tree work and $20,000 to supply and maintain utilities to the new building.

The remaining $590,000 sought would be a cash contribution towards the building.

Ms Stokes said two options were available to the council to meet that level of funding without increasing rates - the sale of surplus land identified in the Arrowtown-Lake Hayes Management Plan, or the use of the Arrowtown Endowment Fund.

Indicative funding proposed by the ACSC totalled $2.05 million, including $700,000 each from the council and the Central Lakes Trust, which was expecting an application.

Of the total indicative funding, the Arrowtown Rugby Club had confirmed its contribution of $100,000 and $65,000 of $150,000 ''in-kind community support'' had been agreed.

''The ACSC has also presented a draft initial operating budget that demonstrates a modest surplus without sinking fund provisioning.

''The budget assumes the facility will have a manager and the predominant income stream is private hires followed by user fees.''

Ms Stokes said the facility could meet the need demonstrated by the wide support for the proposal.

Community groups were willing to assist with fundraising and securing in-kind assistance.

''The project presents council the opportunity to enhance its relationship with ... community groups in Arrowtown and increase the range and diversity of activities available across all age groups.''

In recommending the council support the project, Ms Stokes also recommended the council's cash contribution be limited to $400,000.

The preferred funding option was to use the Arrowtown Endowment Fund, which could be used ''for any purpose that could be seen overall as promoting Arrowtown or assisting its inhabitants''.

The balance of the fund was $740,000.

She recommended the group be given two years to realise the remainder of the funding required.

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