The Wanaka Community Hub is facing significant financial hurdles, just months after opening.

Chairperson Yeverley McCarthy laid out the hub’s predicament at Thursday’s (May 28) annual plan hearing in Wanaka.

“To put it succinctly: we are in trouble,” she said. 

The $3.95M hub, which opened in November last year, is home to a range of social services, including the food bank, and has two meeting rooms, a number of smaller offices, an auditorium which can seat up to 150 people, and a commercial kitchen. 

Bookings for the use of the hub’s facilities were strong when it opened, it was fully tenanted “and it appeared that all financial targets would be met”, according to hub trustee and former accountant Allan Kelly.

The hub is home to a range of social services and also has meeting rooms, an auditorium and more.

“Clearly, the Wanaka Community Hub’s lockdown closure in March has changed those expectations.”

Yeverley told councillors the hub had debts totalling one million dollars. 

While $2M was raised in the community for construction of the facility, this did not cover all costs, and loans were made for the shortfall.

The construction bill increased by approximately $250,000 when the building company contracted to construct the hub, Arrow International, went into receivership at the start of the project. 

The trust was planning to sell a new house and use the profit to help with its debts but in the current economic situation it was expected that the profit could be just half of what was previously expected, submission documents said.

Designed as a place for the community, there is also space for the Wanaka Arts Society to exhibit their art. 

The combination of circumstances meant the hub’s finances are now “precarious”, Yeverley said. 

The idea for a community house arose in 2004 when a study commissioned by QLDC identified a need for a hub for the various community organisations servicing Wanaka. 

Management of the project was transferred to the Wanaka Community House Charitable Trust in 2011.

Around 200 people attended the opening of the hub late last year, where Community Networks manager Kate Murray said she expected the hub to increase access to community services.

Wanaka Community Board member Ed Taylor thanked those who had persevered to bring the project to completion.

“They’ve had issues along the way which have needed resolving but it’s all come to this and it’s a fantastic facility which will be enjoyed by generations,” Ed said.

Councillors will deliberate the submissions presented at the hearing and a final plan will take effect on July 1.

PHOTOS: Wanaka App