Tauranga City Ventures Ltd, who operate Baypark, is to receive from the TCC. $5 million over the next three years. Without securing these funds, this council controlled organisation would have become insolvent.
Currently the operation does not make enough money to even meet the annual interest payments of nearly $1 million. Like any business that is unable to generate sufficient funds to meet all it outgoings the principle loan balance will continue to increase. Sooner or later the loan will become unmanageable, therefore there can only be two outcomes, either Baypark becomes bankrupt, or to avoid this, the council must continuously inject vast sums of money into Baypark for many years to come.
Perhaps Mayor Crosby could do the right thing and sell it. Anyway why do we need or want to own a speedway track?
To quote Marcus Cicero, Roman statesman 106-43 BC. 'It is the nature of every person to error, but only the fool perseveres in error.”
Brian Porter, Welcome Bay.
4 comments
TCVL & the $5m
Posted on 10-02-2012 21:25 | By Murray.Guy
The $12 debt was Council's and they off loaded it to divert attention from themselves, to TCVL, that's Tauranga City Venues Ltd. TCVL now say, we want you to take $5 million back and we'll take care of the rest of the debt YOU gave us, if you let us (keep your nose out).
Only fools persevere to error
Posted on 11-02-2012 13:46 | By algail
Only fools persevere to error. Well yuo got em and fools elected them. Where are the intelligendia to vote them out? Obviously not in taurnaga. Alastair bethlehem
Please clarify
Posted on 11-02-2012 18:21 | By catlins
Councillor Guy I am not sure what point you are trying to make and your closing comments 'keep your nose out” is referring to whom?........ Could you kindly clear these up for me. Brian Porter
You are right Murray
Posted on 11-02-2012 21:12 | By Demandthetruth
But also remeber you were an elected Member of Council. TCC were very cunning in this whole deal ably led by the Mayor & CEO Town. As I am given to understand the deal was done with Bob ( for cheaper housing) in secret without the other elected members knowing. TCC could not afford at that time, to show even more debt so it was set up to be shown as a TCVL debt. The stadium had no gift component in it as was suggested by Bob & the Mayor the true value was never more than the $12million paid.The balance of $10million had interst on it as well and had to be repaid at $2million per year plus interest. So lets see it thru and lets hope (probably forlornly) that next elected Council will be honest enough to demonstrate true integrity and transparency, because this one operating under the guise of "the proven leadership" is absolutely bereft of any. That is why the "sheeples" of Tauranga need to realise they voted in the wolves to power. Same problems will continue next time if you do the same. Take a leaf out of Christchurch ratepayers book and demand the truth
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