$13M+ for Carisbrook

### ODT Tuesday, March 10, 2009 page 12
In a letter to the editor, S Burton of Dunedin asks:

“Why would the Otago Rugby Football Union go from a position, alluded to in a secret memorandum of understanding with the Carisbrook Stadium Trust in 2007, offering the sale of Carisbrook to the CST for a nominal $1 sum to one of offering Carisbrook to the CST/Dunedin City Council for a market price of $13 million-plus in February 2009? Secondly, why would the CST/DCC agree to this purchase, as reported in the ODT (6.2.09) when the DCC has consistently voted to support a replacement facility?”

Read the full letter in print and digital editions.

Er, call DCC on 4774000 and CST on 4792823 if you have any queries.

Posted by Elizabeth Kerr

4 Comments

Filed under CST, Economics, Hot air, Media, Name, Politics, Site, Stadiums

4 responses to “$13M+ for Carisbrook

  1. Elizabeth

    $13 million-plus is a handsome sum if the site is to be purchased for greenfield industrial development. What if?

    We’ll eventually learn from which DCC budget such a figure (or another) is achieved. And that will be a question heading to Chief Executive Jim Harland for reply. At the moment we’re in public domain, thanks to ODT’s publication of S Burton’s assertion.

    Getting at the facts of the negotiation track and contract settlement will be a trace more difficult but not impossible in a small place like Dunedin, where people care…

    People are very welcome to contact us confidentially if they have further information.

  2. Richard

    There was never any “secret” deal/agreement.

    The essential “price” in the original “agreement” between the ORFU and the CST was the “nominal $1” plus whatever was owing on the mortgages/loans on the ORFU properties.

    There is no $13 million in the agreement reached between the DCC and the ORFU.

    FULL STOP.

  3. Elizabeth

    …so where did the $13 million-plus come from?

    A ditto:
    People are very welcome to contact us confidentially if they have further information.

    …there is a lot of thin air just now, and the cold is frightful.

  4. Richard

    Nothing mysterious really. The capital valuation (or rateable value) of The ‘Brook depending on whose figures you look at. I guess, the ODT story made some assumptions on that.

    It is also the figure (or near enough) to that which CST used in their budget/forecasts as to what the site MIGHT realise if sold for redevelopment.

    That proved to be unrealistic, of course, and presently accounts for $5m-$6m of the “increase” in the overall project cost of some $10m – all relating to property matters.

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