The City Block development is back on track with the Invercargill City Council agreeing to go ahead with the $46 million investment.
The public has been consulted and council deliberated over the 462 submissions on Tuesday last week, following a hearing on June 17.
More than 60% of the community was in favour of ICC investing $46 million in City Block, incorporating the initial $20 million investment and $5 million for contingency.
Councillors made their decision today, following a report from council’s strategy and policy manager Rhiannon Suter recommending the extra money be invested into the development.
That was based on community wellbeing outweighing the risks of being involved in a commercial venture of that kind.
Ms Suter noted in her report that in the circumstances that Central Government invested directly to Invercargill City Holdings Ltd (ICHL) in the project through the ‘Shovel Ready Fund,’ council would only have to invest a lower amount.
Because councillors have agreed to go ahead with the additional investment, the ICC’s company Invercargill City Holdings Ltd (ICHL) will purchase an additional $21 million of shares in Invercargill Central Ltd.
The additional investment has come about following the withdrawal of an investor, which then resulted in a funding shortfall.
The developer Scott O’Donnell said to council several months ago that without further investment the major inner city redevelopment project was unlikely to proceed.
It was also understood that ICHL’s shareholding would increase to 54%, meaning the council was now the majority shareholder, with the developer’s company O’Donnell CBD Ltd holding the remaining shares.