Bendigo Stadium Limited is confident of a strong bounce back after the COVID-19 pandemic.

Chief executive Nathan O'Neill said the organisation would continue to demonstrate its value to the community.

"The COVID-19 pandemic has been tough on everyone across the country, not to mention Victorian businesses," Mr O'Neill said.

"We are not alone in experiencing the impact of COVID to our business."

He said Bendigo Stadium's business model had been heavily impacted since the onset of restrictions mid-March.

"Although we are in challenging times, this has not altered our team's approach to lure events for 2021," Mr O'Neill said.

"We are essentially seeing a positive shift for event promoters to experience what Bendigo has to offer in hosting future events, and Bendigo Stadium is at the forefront as venue of choice.

"BSL contributed $15 million to the redevelopment two years ago, which we are still very much committed to".

2.30pm

BENDIGO Stadium lacks the financial capacity to repay its loans as a result of the COVID-19 pandemic, a report to the city's councillors suggests.

The report, published as part of the council's August meeting agenda, identifies a "significant risk" to the stadium being able to manage cashflows and remain open without refinancing.

Bendigo Stadium was expecting to lose revenue across all departments as a result of COVID-19.

Income from hospitality and events was likely to be more than halved.

Revenue from gaming was likely to drop by at least 18 per cent.

By refinancing, Bendigo Stadium could reduce its ongoing monthly payments by about $16,000.

The proposed new loan had a 12-year payback at a variable rate.

The City of Greater Bendigo is the guarantor for the existing $11 million loan, which was to be paid back in 10 years.

The proposed new loan would extend the guarantee over another three council terms, and increase the city's overall exposure from $9.48 million to $13 million.

City managers also identified risks associated with a variable interest rate.

But they said Bendigo Stadium might not have the cash flow to rebuild and recover after the pandemic if the loan changes were not approved.

One of the risks was: "Bendigo Stadium Limited continues to not have the financial capacity to repay their current loans (business model impacted by COVID-19 not financially sustainable)".

Repayments would fall to the city, as the original loan's guarantor.

Story continues below meeting agenda

More news: Expanded COVID-19 testing in Bendigo to curb growing case numbers

"There is strong and long-standing interest in the community sports programs that are operated from within the Bendigo stadium as well as a pipeline of events that, prior to the closure, were planned to be hosted from the venue," city staff wrote.

"Whilst there are some immediate challenges, the diversity of what is offered from the Bendigo Stadium, the quality of the asset and the reputation to manage high-quality events should provide confidence of a successful rebound in the medium and long term."

An external consultant was appointed to review the Bendigo Stadium's budget and cash flow, as part of the city and council's considerations.

Bendigo Stadium is being contacted for comment.

Earlier

BENDIGO Stadium is considering refinancing its loan, given the impacts of the COVID-19 pandemic.

Bendigo council has been asked to act as a guarantor for a refinanced loan agreement up to $13 million.

Councillors will decide whether to endorse the proposal at its August meeting, next Wednesday.

More news: Council rethinks gaming policy after blanket ban pushback

They will also consider a draft affordable housing action plan, a strategic plan for Golden Square, and an economic development strategy.

A single-use plastic policy forms part of Wednesday's agenda, as do plans to act on the city's status as a City of Gastronomy.

The meeting will be broadcast live on the City of Greater Bendigo's website and on community radio station Phoenix FM, as they have been since May.

Have you signed up to the Bendigo Advertiser's daily newsletter and breaking news emails? You can register below and make sure you are up to date with everything that's happening in central Victoria.