Vote on debt

23:26, Jan 22 2013

Waimakariri district councillors will be asked at the first council meeting of the year today to borrow $3.7 million to cover earthquake repair and rebuild costs.

Work on the Kaiapoi Aquatic Centre will cost an additional $215,000 and the Kaiapoi Library/Service Centre and Museum requires a further loan of $3.5 million to allow the project to proceed quickly, according to a staff report.

The demolition of the Kaiapoi Aquatic Centre revealed more decay in some areas than had been expected, including badly corroded steel beams supporting the roof.

Quantity surveyors have estimated a further $195,000 will be needed to cover the extra costs of the rebuild.

Estimated costs for furniture and equipment for the centre have increased after staff found further damage to the existing stock.

This would require an additional $20,000 the report says.

The total cost for the aquatic centre project was estimated at $4.3 million, with only $101,502 coming from the council's earthquake recovery loan.

This was due to the contribution of $1.1 million from the Prime Minister's Earthquake Appeal Trust says council chief executive Jim Palmer.

The estimated total cost for the Kaiapoi Library/Service Centre and Museum is $12 million and about $10 million of that cost would need to be borrowed Mr Palmer said.

The council has estimated a total of $21 million would be drawn down from the loan by 2015 to pay for earthquake repairs and rebuilds.

In an effort to avoid another loan request, council staff have recommended the Kaiapoi War Memorial Clock Tower building be demolished with the clock and associated plant retained, to be used in the future when and if funding becomes available.

This follows another rise in estimated costs for rebuilding or remediating the clock tower building, far exceeding the budget provision of $350,000.

The report suggests the provision of $1.5 million for the Kaiapoi Wharf/Marina may also need to be revised after costings are presented.


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