$15.6 million dollar question for Council

Published on 20 February 2025

At next week's meeting of the Waitaki District Council, the Mayor and Councillors will consider how best to use the $15.6 million dollars returned to Council from Observatory Village in January.

While the total funding available to Observatory Village over Council’s investment was $18.1 million, part of that was a $2.5 million short-term loan function that has now ended and the $15.6 million represents the remaining balance of loaned funds which has been returned.

The investment in the Observatory Village project involved loaning out Councils reserve funding for replacing infrastructure. This supported the development of nearly 100 homes, and 81 care beds for the community in partnership – something Council could have not undertake by itself.

By loaning reserve funds to Observatory Village, and delivering our replacement infrastructure through loans taken out at a lower rate – Council ensured that the $15.6 million dollars was delivering a return for Council, and expanding care facilities and housing.

Mayor Gary Kircher says: “The investment in Observatory Village has been excellent for Council and Waitaki. We have additional homes, and care beds available and a wonderful organisation that provides essential services, as well as funding health initiatives in the community through its future profits. Our role as an initial investor has been crucial, and the repayment of the investment allows Council to consider how best to use these funds for our District at Tuesday's meeting.

My expectation is that Councillors and I are highly likely to agree with the officers' recommendation, which would see it used to repay existing internal and external debt."

Council will consider this at the full meeting of Waitaki District Council being held on Tuesday 25 February.

You can find the information about this on Page 256 of next weeks Agenda, here.

ENDS