14 Jun 2010

Rugby union, council in talks over compensation

9:23 pm on 14 June 2010

Northland Rugby Union is in discussion with Whangarei District Council about compensation for assets it lost with the building of the city's stadium.

The rugby union surrendered the stadium lights, its grandstand and a long-term lease on Okara Park to make way for construction of the Northland Events Centre.

The union's chief executive, Jim Smiley, says it has been agreed that the council owes $2 million, which can now appear as a receivable asset on the union's balance sheet.

But he says it's also been agreed the council won't be paying cash.

The union says it cannot comment on the possibility that one option may be a part-share in the events centre.