Stadium Lotto: $109 million to venues company

UPDATING

### ODT Online Sat, 20 Jun 2009
Stadium: council borrows $109m
By David Loughrey

The Dunedin City Council has begun borrowing $109 million to fund the Forsyth Barr Stadium, with $90 million of that figure locked in at an interest rate of 6.4%.
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### ODT Online Sat, 20/06/2009 – 11:24am.
Comment by Calvin Oaten on Stadium borrowing

Interesting that Athol Stephens says that investing $6.4 million at 6% for 20 years would realise $17.8 million. Correct, except that he forgets to mention that first he had to borrow the $6.4 million. Now, if that was borrowed from the same source as the $109 million at 6.4% then the end result would be negative $4.33 million. Not a good result, but on par with the likely outcome of the whole stadium package. It is seriously flawed, yet we repeatedly get told just how simple it all is. Just $66 per year per average ratepayer, “yeah right”.

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### ODT Online Sat, 20/06/2009 – 1:19pm.
Comment by Calvin Oaten on Dunedin City Council borrowing

“The Dunedin City Council has begun borrowing $109m to fund the Forsyth Barr Stadium, with $90m of that figure locked in at an interest rate of 6.4%.” This has already been done by DCHL before 31.12.08 as shown in their six monthly progress report.
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Question: Which set of figures is closer to the true cost of the stadium project… Are the city council figures easy to understand???

### ODT Online Sat, 20/06/2009 – 4:29pm.
Comment by farsighted on Add another $128 million

We’re now at $342 million all up. Land purchases “Guaranteed Maximum Price”. Purchase of Carisbrook. Interest on DCC debt More to come – demolition costs of Carisbrook, interest on the ORC debt, SH realignment. That $400 million projection is now well within reach.
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Filed under Economics, Hot air, Media, Politics, Project management, Stadiums

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