The Wanaka Community Hub has received an interest-free loan of $500,000 from Queenstown Lakes District Council (QLDC). 

Hub trust chair Yeverley McCarthy spoke at an annual plan hearing in May, telling council the hub’s finances were “precarious” and asking for assistance. “To put it succinctly: we are in trouble,” she said. 

The QLDC came to the rescue at Thursday’s (July 23) meeting, with QLDC chief executive Mike Theelen announcing council will refinance the seven of the Wanaka Community Hub’s private loans totalling half a million dollars. 

This is more than half the hub’s debt, with $350,000 owing to the Anglican Church remaining.

The debt QLDC is now refinancing was due for repayment in August. 

The opening of the Wanaka Community Hub was attended by approximately 200 people in November 2019. 

The sum would be offered in an interest free loan repayable over five years, Mike said, and comes with a string of conditions including the requirement that a management representative of council be permitted to work with the hub’s board of trustees for the next 12 months. 

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Community hub’s finances ‘precarious’

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. 

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. 

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

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 COVID-19 restrictions affected tenancies and bookings. 

QLDC councillor Niamh Shaw said she was “chuffed” council had stepped in with financial support.

“I am excited to collaborate with Wanaka Community Hub to realise the full potential of this amazing facility, and ensure its position as a thriving, accessible and affordable community asset now and into the future.”

Hub chair Yeverley McCarthy could not be reached for comment.

PHOTOS: Wanaka App