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Sparks fly over community hub loan

The Wānaka App

Maddy Harker

13 May 2021, 6:06 PM

Sparks fly over community hub loanThe Wanaka Community Hub opened in November 2019.

Wanaka Community Hub (WCH) trustees stormed out of yesterday’s (May 13) Wanaka Community Board (WCB) meeting while funding for the hub was being considered by board members. 


Queenstown Lakes District Council (QLDC) agreed to provide an interest-free loan of half a million dollars to the Wanaka Community House Charitable Trust, which runs the hub, in July last year, and yesterday the WCB was asked to make a recommendation for a one-off payment of $500,000 to convert the loan to a capital grant.



“We will not require any further funds from the council once this grant is given,” trust chair Yeverley McCarthy said. 


The $3.95M hub, which opened in November 2019, 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. 


Yeverley explained to the WCB members the financial challenges the trust had faced, and the purpose of the well-used facility, which currently accommodated 35 groups with more on a waiting list.


But when councillor Niamh Shaw said she had concerns with the proposed grant for what she said was “essentially a private charitable organisation with excellent intentions,” it prompted Yeverley and the other trustees to walk out of the meeting.


When QLDC agreed to give the hub the $500,000 loan it also entered into an agreement with the hub whereby, if the hub met a series of conditions, the loan could be transferred to a grant a year later. 


Niamh said she did not believe the conditions had been fully met and “if a portion is being funded by the community it should expect to have a stake.”


She suggested the board instead recommend to council to extend the interest-free loan by up to twelve months before converting it to a grant subject to defining community oversight, governance and equity.


Community board member Jude Battson said Niamh’s recommendation was “reckless and inappropriate” but after some discussion, the board approved Niamh’s amended resolution by a vote of three in favour and two against.


After the meeting Niamh told the Wanaka App the purpose of her motion was to buy some more time to “complete the journey” with the hub, its users and the wider community. 


The final decision on the hub’s loan will be made at a full council meeting.


PHOTO: Wanaka App