Loan guarantees are available to sporting and recreation clubs within Dunedin city on the following conditions:
- That the applicant club is the occupier of Council reserve land under a lease issued by the Council.
- That the application for the guarantee is made in writing to the Council enclosing the following documents:
- Copies of the audited annual accounts for the previous three financial years.
- A budgeted income and expenditure account for the next financial year.
- Details of the reason for the land and funding arrangements.
- That the DCC Finance Department is satisfied as to the ability of the club to meet payments as they fall due and the Council is satisfied that the applicant is a bona fide organisation.
- That the guarantees be given only on term loans and mortgages and only for a maximum of ten years.
- That the applicant must sign a deed containing the following conditions:
- That the club bears all costs relating to the issue of the guarantee.
- The club ensures all payments due will be paid on time and that any revenue received will first be applied to meeting any payments due.
- The club will provide the Council within two months of the end of each financial year, a copy of its audited annual accounts.
- If the Council is called on to meet any payments under the guarantee, appropriate assets of the club will be transferred to the city.
- Annual contingent loan servicing charges must not exceed 2% of the Council's general rate take for the preceding year.
- If the Council is called upon to meet the guarantee, the lease may be terminated and Council may enter into possession and occupancy of the land and improvements without liability for same or for the termination of the lease.
- If the Council enters into possession as described above, the Council will not assure either continuance of any tenancy or sub-tenancy or that the Council will not impose restrictions on the further uses to which the property may be put.
- Guarantees are to be finalised by the City Solicitor and executed under seal at the applicant's expense.
- In the case of:
- Speculative proposals.
- Requests in excess of $50,000.00.
- Unusual applications.
These applications will be referred directly to the Community and Environment Committee, at the discretion of the Chief Executive and the Chairperson of the Grants Subcommittee. Such referrals must state on which grounds it has been so directed.
- That if a funding body is prepared to offer finance to a sporting and recreational club at a very low rate of interest with a promise that the loan is guaranteed by the Council, even though the land is not reserve land, the Council may consider, and if otherwise satisfied, agree to guarantee the loan.