On page 3 of the Weekend Sun, June 8, serious questions have been raised (part of my 10/5/2012 10-year plan submissions to TCC) about the grant that TECT approved to be paid to TCC, but not TCVL(Baypark). There is an alternate motivation for this money merry-go-round: -
Mayor Crosby said the TECT grant was paid to TCVL to 'help out with their cash position”. TCVL is technically insolvent. A ratepayer letter of comfort from TCC was required by Audit NZ. It is an offence to trade while insolvent and to continue to trade whilst insolvent, the letter of comfort does not remedy the trading losses, or
I believe the real motivation for diverting these funds to TCVL was so as $2.1m of TECT tax credits would be dropped on the way into Baypark's hands. But TCVL is not entitled to these credits. The benefit to TCVL (also TCAL and Tauranga City Investments Ltd as a group) of the tax credits is that they are available to be allocated to shareholders rather than making tax payments for RWT.
No costs of constructing the TECT Arena have been paid by TCVL to date, TECT approved $5.9m for the specifically for the biulding costs of TECT Arena only. Will we ever know the truth here.

I Stevenson, Tauranga.