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Members of the trust aiming to resurrect the High St cable car have met Dunedin City Council officials to discuss their plans.
Dunedin Cable Car Trust chairman Phil Cole confirmed a meeting with council representatives had taken place this week, but said the registered trust was not asking the council for financial assistance.
The trust was asked to submit on the draft spatial plan and the transportation strategy for next year, and "this is encouraging", the Dunedin-based transportation engineer said.
"We are realistic in that it is not just a question of getting it built; it is a question of keeping it funded after it is built."
He envisaged the project was a "superb fit" for any future plans on revitalising the city's warehousing area, and said it would enhance heritage development.
"Talking with council was good because it is not going to cost them any money but they are keen to push it.
"Once we have raised the necessary funds, we need to have an effective fundraising operation in place to make sure that the cable car does not become in any way a financial drain on the city."
Mr Cole said the project could cost an estimated $15 million; including a cable car terminus at Mornington Park, a 1.6km cable and track system from lower High St to the terminus, and the construction of several cable cars.
The trust was hoping to be registered as a charitable trust next year, and while a public fundraising drive was yet to begin, $6000 had been raised to date.
Mr Cole said a major public fundraising project would be launched next year, and the trust was in talks with potential sponsors.
It was envisaged the work would be carried out in Dunedin, including at Hillside Engineering, and the majority of passengers were expected to be city residents.
"Everyone seems really keen on the idea."
The result of a survey sent to those in the Mornington/Belleknowes area would be known by early next year, he said.
The trust was forging a relationship with its counterparts in San Francisco, as Dunedin was the second place to get cable cars after the American city, he said.