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The Wingatui Community Hall Society has suggested a land-swap, or similar, with the Dunedin City Council to wipe a $40,000 debt with the council against the society's property.
With the increase in residential properties in the vicinity of the hall, it was clear the city would soon have to address the need to provide a public recreational facility, or playground, in the area, society treasurer Peter Wilson and chairman Mike McNulty told councillors at a recent public forum.
Land beside the hall owned by the society has already been developed into a playground.
The society holds a $40,000 mortgage with the council, on which it has failed to meet payments in recent years, so it has a problem with rates arrears.
A new committee was trying to resolve the society's outstanding financial issues, and it seemed both parties had a problem that could be resolved to mutual advantage, Mr Wilson said.
He said it was not clear why the society had taken the mortgage in the first place.
Councillors agreed there should be a discussion on the matter and asked council staff to prepare a report for the council's community development committee, which will next meet next firstname.lastname@example.org