The decision was made behind closed doors for commercial in confidence at Wednesday night's council meeting.

Council has awarded the $5.6 million tender to proceed with the expansion of the indoor stadium to a six court regional facility. 

The confirmation of the construction now secures $2.8 million federal funding in support of this major regional project. General manager Craig Swift-McNair will provide a report to the November council meeting confirming where council will source funding for the project.

In a statement released on Thursday morning council said the proposed lease arrangement with the PCYC was not able to be supported due to conditions set by the PCYC that were contrary to the signed Heads of Agreement. 

Council staff have met with the PCYC to acknowledge the outcome to award the tender, and to not proceed with a lease. However council maintained the offer to work with the PCYC to ascertain other facilities within the Local Government Area that may accommodate a PCYC.

Council staff will now meet with stadium user groups and community members in preparation for construction.

“Council is keen to capitalise on the regions sporting potential, deliver a world-class facility to the local community and promote our region as a sporting centre of excellence and destination of choice," community and economic growth director Tricia Bulic said.

The Port News has contacted the PCYC for a response.

That Council:

1. Accept the revised tender from Ware Building Pty Ltd for the Port Macquarie Indoor Stadium Expansion for $5,602,054 (ex GST).

2. Accept the Schedule of Rates from Ware Building Pty Ltd for the management of potential variations to the project.

3. Increase the project budget as outlined in the Financial and Economic Implications section of this report, noting the additional funding sources.

4. Affix the seal of Council to the necessary documents.

5. Maintain the confidentiality of the documents and considerations in respect of Tender T-14-05.

6. Note the most recent correspondence of 18 October 2015 on behalf of NSW PCYC CEO, Darren Black, that without Council’s assurance to the conditions as specified by PCYC on 13 October, “PCYC will not be supporting the project nor providing any resources to the project”.

7. Note that most conditions set by PCYC in its correspondence of 13 and 18 October 2015 are either absent from or in direct conflict with the Heads of Agreement signed by PCYC on 26 March 2015.

8. Given the withdrawal of support by PCYC, request the General Manager to report to the November 2015 Council Meeting on alternate funding sources.

9. Provide support for PCYC to source an alternate location in the Port Macquarie-Hastings LGA for a stand-alone facility.

FOR: Crs Besseling, Cusato, Hawkins, Intemann, Levido, Sargeant and Turner

AGAINST: Cr Roberts