I’ll try to lay it out for you, but the crux of the matter, despite the sustained efforts of the StS and councillors opposing the development, Council today decided to continue with the project, voting 10-5. This is more or less the green light (read Peter E’s cautions below and media confusion), although as you learn in life nothing is determined until the first people go through the turnstiles of the first event at the stadium.
Not forgetting the the Otago Regional Council also has a set of criteria that needs to be fulfilled in order for the substantial funding from them is approved. The CST has stated that all of the lines in the sand from both councils has been met -if true a phenomenal feat in this current economic climate.
Government has confirmed it’s been approached and that it is indeed considering making a ‘modest contribution’. This sum is yet to be determined, and who knows what a millionaire deems modest.
The CST has to date met most if not all of the demands that has been placed upon it (although the line in the sand and the hurdles have been shifted and added to), including the following;
A) A guaranteed maximum price had been agreed to, and the trust and the project delivery team was confident it could be delivered.
This is essentially a contract guaranteeing the price, as it suggests. Many people have seen this as the stumbling block, illustrating stadiums world wide which have run over cost (and some quite substantially). But if anyone has undertaken massive construction on this scale, these are achievable, they’re called contracts. There are huge penalties if construction companies fail to meet deadlines and costs. The company that infamously built the new Wembley stadium, Multiplex, incurred massive costs as a result of overruns and delays. This is just the commercial reality of some forms of construction. Yes it could still run over cost, etc, but if the CST has done it’s job that cost will be met by whoever builds it, not the taxpayer/ratepayer.
The Community Trust of Otago has come up $3m short in it’s funding,but that still amounts to somewhere in the $7m figure if I’m correct.
“Overall, the costs to ratepayers was unchanged, with the average household in Dunedin paying $66 a year for the next 20 years.”
So despite the StS’s claims this is still the figure that they are working on. I noticed Nicola Holman at the meeting, and she will have a better understanding of those figures. But if that’s what council is working to, that’s the figure we have to assume construction is being based upon.
Fliss Butcher questioned why a concert promoter wasn’t in amongst the list of companies associated with the development. This still doesn’t bother me. Correct me if I am wrong vBase, the company that runs Lancaster Park in CHCH doesn’t have a contracted concert promoter. vBase (the model for stadium management which ours will be run) is the company charged with actively seeking out promoters to bring acts to the city. This will be the same here, there is more than 1 promoter out there, and there are thousands upon thousands of acts to entice here. Bands in the past have been enticed to CHCH because they can incorporate a RnR stay in Central Otago, at any one of the luxury lodges there. Well considering that Central is a very short flight or drive from Dunedin, this should still be to our advantage.
Look there were so many things discussed today, which I simply wasn’t there for, I’ll have to open this up to Elizabeth, Peter or anyone who saw the whole game unfold.
But I will repeat in no uncertain terms, this is a massive project for a city of this size, and we really need Central Govt to come to the party now, this will help no end.
Full ODT report here, and of course sales of the ODT will be hot tomorrow as a result of their coverage of the day.