A view of the rugby ground in Ohai which is adjacent to the building in question (File photo). Photo: RNZ / Tim Brown
An old rugby club building in rural Southland could soon be sold for just $1.
But Southland District Council is being secretive about the extra information sought before a decision is made.
The building in Ohai, about an hour from Invercargill, has been used by Te Oruanui Marae Ohai Inc (TOMOI) since some time after September 2023, when the corporation was formed.
A Southland Times article from March talked about the effort that had gone into establishing a marae in the small town, and the positive impact it was having.
TOMOI requested the council consider transferring the building to them, which was deliberated by the community board on 3 April ahead of a recommendation to full council.
The board meeting rendered no outcome, however, with minutes showing chair Tony Philpott requested more information from TOMOI before proceeding.
In response to questions, the council was not willing to comment publicly, with a spokesperson saying discussions were continuing with TOMOI.
Ohai is a small town in rural Southland which was built on coal mining. It is just over an hour from Invercargill. Photo: Supplied / ODT
Community board chair Philpott said they were "doing some more investigating".
The report prepared for the community board gave background on the building, which was previously owned and occupied by Ohai Rugby Club on council land.
The club rooms were sold to Te Oruanui Inc in 1994, with the land leased from 1999.
A "rolling over" lease with Te Oruanui Inc was voided by the council when they later departed the building, with the group officially dissolving in 2021.
The former rugby club building in Ohai, rural Southland, could be sold for $1 (File photo). Photo: RNZ / Tim Brown
Ownership of the building then went back to the council, with the report noting unpaid service charges of approximately $10,000 were still outstanding - a situation being worked through separately.
TOMOI did not form until September 2023, and are using the site without a lease on the building or land, the report said.
Council staff recommended the community board endorse a transfer of the building to TOMOI for $1, with an annual land lease of $100 plus GST.
Staff said it was appropriate to sell it for that amount because the council had come to own it at no cost following the demise of Te Oruanui Inc, and other costs were a factor for TOMOI going forward.
That included insurance, electricity, repairs and annual service charges of over $5000 per year.
TOMOI were contacted for comment but did not respond.
LDR is local body journalism co-funded by RNZ and NZ On Air.