Background
Last year, Council entered negotiations with Speedway Racing on a proposal to enable Speedway to continue at Mercury Baypark Stadium through to 2039. The goal was to provide certainty for motorsport while reducing long-term costs and risks for Council while also limiting any disruption to other users of the wider Mercury Baypark site.
Now we have a clear proposal, we’re checking in with the community to hear your views on this approach, while also considering community views on alternative uses for the stadium site. All feedback will be reported to Elected Members at a Council meeting, and submitters will have the opportunity to speak to Council, before any final decisions are made.
So, what’s in the proposal?
In its current state, the North Stand at Mercury Baypark Stadium has limited use and would require investment to improve spectator experience. Selling the stand, but not the land, to Speedway Racing Ltd for $1 minimises the future cost burden from ratepayers of providing Speedway as it would transfer the responsibility for maintenance to Speedway Racing Ltd. Tauranga City Council would continue to own the land and Speedway Racing Ltd would pay to lease this land from Bay Venues for a percentage of the speedway revenue. At the end of the proposed agreement, in 2039, all assets would be returned to Council at a cost of $1.
The proposed agreement would minimise the current operating cost of supporting speedway activities to Council, with any operating costs expected to be covered by revenue from the lease. There is no funding currently set aside for maintaining, renewing or redeveloping the North Stand if speedway operations cease. The proposed agreement enables Speedway to continue for 10 years, with private investment to improve the way it operates, and minimises immediate costs and liabilities to Council. That’s why we are considering the proposal – however we want to hear from you.
Speedway Racing Ltd has confirmed they are willing to invest in the stadium only if they have a long-term commitment (certainty of tenure until 2039). This means a short-term extension to the current arrangements beyond 2029 is not on the table. Council has not yet given consideration to specific alternative uses of the stadium space should Speedway not continue after 2029. Alternative uses could include community-run or commercially-run recreational activities. Due to the condition and constraints of the stand and the site, alternative uses are expected to have some costs to Council. With the proposed sale of the stand and the land lease to 2039, those considerations would in effect be deferred to closer to that date.
Each way forward has trade-offs including different costs, opportunities, and implications. At this stage, we want to understand what the community’s views are.
Council, alongside Bay Venues is considering these options to provide clarity and direction for the future of the Mercury Baypark site — and your feedback will help guide this decision.
The proposal options
If you want to find out more about what’s proposed, you can read the full document.
Proposal to Retain Speedway at Mercury Baypark to 2039 (438kb pdf)