The Southland Sports Car Club requested help from the council, its lessor, after being hit with a rent increase of $3425 plus GST at Teretonga Park — an area home to a 2.62km circuit which attracts national and overseas competitors.
The club’s financial position was detailed in a council report this week which showed it had mostly run at a loss since 2016. During that time, cash reserves dropped by almost half to $360,988.
"It’s not dire by any means, but it’s time to recognise that change needs to happen."
Mr Wilson said the club had asked the council to reduce lease payments, or ideally put them on hold until a more sustainable model could be found.
"The proposed lease of $24,000 is a significant sum of money for a club that’s losing on average $60,000 a year without any ongoing significant maintenance."
A council report prepared for yesterday said there had been meetings and discussions between the two parties following a 2024 rent review, but the situation was "unresolved".
The council had even encouraged the club to seek assistance from its community wellbeing fund, which it did but was unsuccessful.
Mayor Tom Campbell was disappointed an option to waive rent for the club over the short to medium term was not included in staff recommendations.
Sports facilities such as the ILT Stadium, Splash Palace, Surrey Park and Rugby Park all received substantial support from community funds, he said.
"Teretonga, we actually take money from them."
Mr Campbell said that a lack of intervention could lead to a situation similar to Rugby Park, which the council had taken over.
The city’s main rugby ground featured several times during the discussion, as council group manager Rex Capil revealed a pay-per-use arrangement was in place there instead of a lease.
Cr Alex Crackett highlighted the track’s economic impact for the city, while Cr Ian Pottinger finished his reflections with a simple message: "God defend the track".
Council group manager Patricia Christie told councillors waiving rent for the club effectively reduced revenue by $21,000 a year and would impact rates at a time when the council was looking towards user-pays.
But councillors ultimately decided free rent should be given until 2031 and backed a partnership proposal being considered in the future.
The decision was made at committee level, meaning it requires final sign-off from the full council.
The report said the car club was a 70-year user of the reserve and had funded improvements and infrastructure over that time.
Rent was set to jump from $17,825 to $21,250 plus GST, following an independent 2024 valuation.
• LDR is local body journalism co-funded by RNZ and NZ On Air.
