If Tarras Water Ltd wants to meet its goal of starting its irrigation project this summer, it needs to work quickly to answer Otago Regional Council questions, councillors say.
Tarras Water has approached the council proposing it take up a 30% dry-equity stake in its irrigation project plus payment of annual fixed costs at a cost of $3.4 million plus $530,000 a year. The council would then be able to on-sell the right to irrigate to landowners when they were ready to take part in the scheme.
At its last meeting, the council asked the company for more details of the proposal, its impacts and risks.
Council corporate services director Wayne Scott said the council also asked to see the company's constitution, proposed water supply agreement and redeemable preference share documentation but it had not received it.
While Tarras Water indicated it accepted the council conditions around representation and the minimum 70% uptake by landowners in the designated 6563ha, it did not answer some of the council's other queries about time frames for buy-back and the council's ability to on-sell to another investor.
Staff would continue to work with Tarras Water to progress the request, he said.
Cr Duncan Butcher said at a meeting this week the council needed answers and to see the documentation before it could decide if it was to amend its long-term plan to allow the investment to go ahead.
"If Tarras Water wants to achieve its goal, it needs to work quickly, it needs to talk to council about some of these issues and conditions.
"Tarras needs to know we have a lot of work to do in a very short time."
Chairman Stephen Woodhead said the time frame was "very tight" as the council had to go through a consultation process with set time frames.
Mr Scott said if the council got the answers it required it was possible it could make a final decision on involvement in the scheme at its December meeting.
As part of the long-term plan amendments, the council would need to make changes to financial strategy to allow it to invest in irrigation schemes and needed to develop a proposal to consult on, including a summary of the scheme proposal, amount to be invested, when and where it would come from, the risks of investment and the impacts on ratepayers.
The amendment would also need to be audited and go out for public consultation for a minimum of 20 working days. A hearing would need to be held and recommendations made for the council to consider in December.
