I received this email about the Hagley Park lights. I will refrain from reminding you all about what I feel about this cricket pavilion being in Hagley Park. Here is the release from CCC on the topic:
This email is to update you about Christchurch City Council’s decision to provide a rates-neutral loan to the Canterbury Cricket Trust towards the purchase of new sports floodlights for Hagley Oval.
Following decisions made by the Finance and Performance Committee and full Council on 5 and 12 March respectively, the Council and Trust have now agreed to the final terms of the loan agreement.
The Council will loan the Canterbury Cricket Trust up to $1 million for the installation of six new floodlights at Hagley Oval, in order to secure a leading role in the 2021 Women’s Cricket World Cup.
The Trust has since been able to secure a better deal for the floodlights and lower its initial loan request of $1.5 million to a maximum of $1 million from the Council.
The loan is to be paid back within four years, plus interest to cover the Council’s borrowing costs, to ensure there is no cost to ratepayers. The Trust will also cover the costs of preparing the loan agreement.
Terms and conditions of the loan agreement:
- The Council will loan the Canterbury Cricket Trust up to $1 million for the installation of Floodlights at Hagley Oval in order to secure a leading role in the 2021 Women’s Cricket World Cup:
- Payments will include the principal and interest paid at 20 basis points above the Council’s cost of borrowing
- Interest is paid at regular intervals with Canterbury Cricket Trust paying the first two years’ ($40,000) on signing
- The principal is paid at the end of the term, a maximum of four years, or earlier if possible.
- An additional conditions will remain confidential until the end of the loan agreement. This is to allow the Trust to be in the best position to raise the balance of the needed funding for the project and to be able to repay the loan to the Council.
Drawdown of the loan is conditional upon:
- The Canterbury Cricket Trust providing a charge by way of a first-ranking General Security Agreement, for $1 million, in favour of the Council
- The Canterbury Cricket Trust demonstrating that it has already secured a minimum of $1,500,000 towards the cost of installing floodlights at Hagley Oval
- Christchurch being awarded the final of the 2021 Women’s Cricket World Cup
- The Canterbury Cricket Trust providing a letter to Council explicitly stating that the Trust will not subsequently seek that any portion of the loan be converted to a grant or written off.
The relevant reports and minutes are available for you to download from the Council’s website via the links below: