This is smoke & mirrors - an “off-balance sheet structure” ” in order to give the Council more wiggle room when it comes to debt, which obviously would make a good impact on the [council's] debt to revenue ratio, also known as special purpose vehicles SPV). Enron used a form of off-balance-sheet financing (OBSF) or SPVs to hide its mountains of debt and toxic assets from investors and creditors. The company traded its quickly rising stock for cash or notes from the SPV. The SPV used the stock for hedging assets on Enron's balance sheet. When Enron's stock began falling, the values of the SPVs went down, and Enron was financially liable for supporting them. Because Enron could not repay its creditors and investors, the company filed for bankruptcy. Although the SPVs were disclosed in the notes on the company's financial documents, few investors understood the seriousness of the situation. Hamilton City Council is very unlikely to declare bankruptcy but the effect on ratepayers will be dire.
Anything, any dream any project no matter how bizarre can be justified under the wellbeings.