The Cromwell speedway is facing an uncertain future after being told, for the third time, that Central Otago District Council will not reconsider a major lease increase - a decision that club leaders say could force them to shut down.

Central Motor Speedway club president Claire Arkell confirmed the club was advised on Thursday (July 31) that its latest request to review the lease terms had been denied.

“We now have to look at the financial viability of the club,” she said. 

“It would be a shame for the club to cease operations because we forfeit on the rent.”

At Wednesday’s full council meeting, past president, committee member and life member Andy Erskine made a heartfelt plea during the public forum, outlining how the club had recorded significant financial losses and could no longer absorb escalating costs.

“We’re definitely going backwards and we just don’t know if we can sustain that,” he said.

The club has leased its land on the outskirts of Cromwell for years, but Andy said the terms had changed significantly and the club was seeking clarity around what he described as substantial increases.

He said in pre-Covid years the speedway may have been viewed as a commercial operator - in part because it was actively saving with a view to purchasing the land, so its books looked good.

But, he said, “that dream of owning the land became non-existent”, and the club’s financial picture had changed dramatically.

During the forum, Claire told councillors the speedway had experienced a nearly 22 percent drop in revenue over the past two years, while cash expenditure had increased by 300 percent.

“We’ve been putting money back into the club and facilities,” she said. 

With a $48,000 rent increase on the table and looming costs to replace fencing and potentially the track surface, the club’s future was hanging in the balance.

“We also know the benefits that the speedway brings to the community, and it will be a shame if we have to shut up shop because we’ve been priced out of the land,” she said.

After the meeting, Claire provided further detail to The Central App, saying the club’s rent had previously been $20,000 per year - but with an $18,000 rebate from the community board, it effectively paid $2,000 annually.

That rebate has since been removed and the rent increased to $50,000 - a total change of $48,000 for the club.

“Our club made a significant loss - over $80,000 - last financial year, and a further $20,000 the year before,” she said. 

“With the anticipated increase in water rates too, we are facing a significant increase in council expenses alone.”

Claire said this was the third time the club had asked the council to reconsider the lease. 

“We feel the council are not listening.

“I’m beginning to think they actually don’t want us here at all.”

She emphasised the economic contribution of the speedway, saying drivers, crew and spectators stay in local accommodation, buy food and fuel, and support Cromwell businesses.

“We know of other clubs that pay $1 per year. While they are smaller than ours, we provide a lot more monetary return and other intangible returns to the community than they do,” she said.

“We just feel that we have been shafted a bit.”

Central Otago District Council was approached for comment but said staff were not in a position to do so at this time.

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