Next week, the council will consider spending $250,000 to help with the village’s development costs and then, once the council has received a formal business case from the Observatory Village Trust, will consider another donation to help with expansion.
The $250,000 would come from bequests and the sale of community housing.
Mr Kircher said the donation would mean beds would become more readily available to meet demand.
He said the facility was projected to open with all beds full.
The reason why the council was considering a contribution was to keep North Otago’s ageing population at home rather than having retirees placed in communities elsewhere, he said.
The retirement village, when opened, was originally to have had a dementia ward, but now that would be replaced by general beds and the dementia ward would be built in the future.
Observatory Village Trust chairman Ken Scott said the money would be welcomed in the fight to get ahead of demand in the area.
He said the village was originally going to open with 41 beds and now it looked like another 40 would be added.
The council appoints the Observatory Village Trust trustees and the trustees appoint the village’s management board.
Mr Scott said any profits made by the community-owned village would go back to community health.
