Warring councils have reached agreement over a new sports stadium at Whangarei - after an ultimatum.
Northland Regional Council is building an $18 million events centre at Okara Park.
On Wednesday, it threatened to stop the project, saying Whangarei Mayor Stan Semenoff tried to divert a $2.5 million Government grant for the stadium and wanted to give part ownership to the Northland Rugby Union.
NRC chair Mark Farnsworth says Mr Semenoff has now agreed the grant will go to the regional council.
Mr Farnsworth says the deal is that the events centre will be owned by the Whangarei council, but run by an independent trust. The regional council will be consulted over the trustees.