A recommendation for the Ōtorohanga District Development Board (ŌDDB) to run future economic decisions past the council has been rejected by the board.
The staff recommendation was prompted by a $30,000 grant the board made to the Ōtorohanga Kiwi House and Native Bird Park.
To raise the grant, the board reduced the scope of the role and working hours of its economic development manager, paid no honorarium fees to board members and reduced a forecast for building refurbishment.
The view of Ōtorohanga District Council staff was that the grant created the potential of reputational risk to both the development board and the council by requesting/approving an increase of $50,000 to deliver a strategic plan, followed by awarding $30,000 (60%) by way of a business grant.
The service agreement between the council and the development board does not contain any clause preventing the board from making business grants, nor any requirement to seek council permission prior to doing so.
Board member Carolyn Christian said the development board was set up 26 or 27 years ago and did not have a political aspect to it. Requiring the board to bring all its financial decisions to the council could delay its decision making by two months.
“Are you going to have special meetings? Are you talking about putting a cap on it? Do you want the [development board] to come to you when they give clothing grants? Or subsidised breakfasts? The business network breakfasts and other little sorts of things they have done?
“The medical centre – would you have wanted them to come to you? The Beattie Home dementia unit?”
Council representative on the board, Katrina Christison, said requiring the board to go to the council for approval would impede its ability to respond in a timely manner.
Speaking after the meeting, Mayor Max Baxter said there had been a historic rule change. In the past the council had wanted to bring the development board’s small grants back in-house as it brought a lot of pressure off the board.
“There’s nothing in the current contract with ŌDDB that they can’t make loans. I appreciate they are there as our economic development arm and they saw in their minds benefit in giving a grant to the kiwi house and so…that’s up to them,” he said.
In the report to council, the ŌDDB stated the $30,000 payment to Ōtorohanga Kiwi House Charitable Trust was to be paid in instalments over three months.
The payment enabled the ŌKH to partner marketing company Likeminds to provide the kiwi house with video marketing and written material, which will be used in multiple pitches for funding and branding of new products and experience to promote and encourage visitors to the Ōtorohanga district.
The project very much aligned with ŌDDB’s goal of sustained growth in supporting the next generation of families to call the district home, achieved by population and economic growth.
