The decision is expected to be rubber stamped at a council meeting on June 2. However, the DCC did not rule out subsidising the cost of hiring the Edgar Centre if the Nuggets re-enter the league.
Basketball Otago chief executive Mark Rogers was unaware of the decision when approached by the Otago Daily Times and declined to comment until he had heard from the council.
"I haven't seen anything from the council yet, so it would be best to see what they say before I comment on it," Rogers said.
Rogers made the request during the DCC annual planning meeting at the Municipal Chambers last week. BBO planned to use the $50,000 to cover venue costs - estimated at $33,500 - with the remainder going towards the NBL fee.
In the grant application, BBO said the franchise spent more than $250,000 with local businesses each year, visiting teams and supporters occupied more than 200 bed nights, and the franchise employed the equivalent of four full-time staff.
The Nuggets lost the battle to remain in the league in November last year when BBO decided it was not prepared to continue propping the franchise up financially.
The association said it had been pouring up to $100,000 into the team each year. Money, it believed ,was better spent in other areas.
Last week, Rogers warned the grant alone would not be enough to secure the franchise's re-entry into the league in 2010.
A comment, perhaps, noted by the councillors who, during deliberations, raised concerns over setting a precedent by being seen to bail a team out.
They also pointed out $50,000 would not make the Nuggets more competitive nor solve their recruiting problems.
