Dunedin City Council is buggered

### stuff.co.nz Last updated 01:00 02/09/2011
‘Marvel’ needed to pay for Dunedin stadium
By Wilma McCorkindale – DScene
Dunedin City councillors have been warned that not only is the city struggling to finance its brand new stadium, it may also not be able to afford to maintain the controversial venue. The report recommended any surplus cash flows generated by the DCC or its holding company, Dunedin City Holdings Ltd (DCHL), over the next 10 years, go to reducing stadium debt.

“That is mind-boggling,” Cr Lee Vandervis, a stadium opponent, said. “This is saying that any spare cash, anywhere, all goes to the stadium. That is every spare dollar that might show up in any budget in the DCC or DCHL over the next 10 years. There will not be one dollar for anything else.”

Another recommendation has the DCC pushing stadium debt from 20 years out to 40 years. “That adds an obscene $115 million in interest charges to the cost of the Stadium,” Vandervis said, “and the figures say we must push out to 40 years because it is no longer possible for DVL to repay the debt over 20 years.

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Posted by Elizabeth Kerr

6 Comments

Filed under Stadiums

6 responses to “Dunedin City Council is buggered

    • Elizabeth

      I well remember this opinion piece. Written by an astute man, widely regarded as such.

      In part it corresponds, timelessly, to my complete despair in relation to Dunedin’s near total ignore of the business potential of Otago Southland, and sullen disregard held for any need to link to or stimulate it.

      The desk huggers of Dunedin are a thick and facile bunch – crowning evidence: (yes) their willingness to be exhorted by a very few dead-head small town men, who operate by fraudulent and deceitful means, to invest in a stadium that long before it got to the drawing boards had no capacity whatsoever to turn a viable business case.

      Dunedin, the city for dead rats.

      [comment]

  1. Amanda kennedy

    It is not just happening in our little town, in San Diego they have a freakishly similar thing going on; a compliant media, vested interests influencing city hall and a baseball stadium that has financially stripped the city!
    http://www.sandiegoreader.com/news/2011/sep/07/citylights1-reward-few-screw-many/

  2. Calvin Oaten

    Some of you will probably have read the latest “City Talk”. It highlights the ‘Stadium Fact File’. Cost is stated as $198million. The following is a letter I have sent to Rodney Bryant, copied to Dave Cull.

    Hello Rodney,
    I have just read the ‘Stadium Fact File’ as published in the September City Talk. The final point is the Cost: $198 million. Why [do] you publicly continue to promote this “myth” to the unsuspecting citizens is a serious case of either deliberate deception, non investigative journalism, or you in turn being seriously misled. Either way, it is a poor commentary on your overseeing the duties of editorship.

    A simple verification of the facts would show you that the situation is as follows: DCC contribution $170m (as determined by last Monday’s 5 Sept FSD committee meeting when it was approved that DVL’s authorised capital should be increased to $160m, and DVML’s to $10m. This to cover required commitments.) Otago Regional Council $37.5m, Otago Community Trust $7.5m, Otago University $10m and Central Govt $15m. This all adds up to $240m. This, of course does not include the purported “private funding” of at least $30m, which is quite possibly included in the DCC’s $160m. If not then should it be separate; the total would be in the vicinity of $270m. The true picture (extremely difficult to determine) could be very much greater, with the discrepancy huge. The people deserve better.

    I think that there should be a public explanation of the true picture and an apology for the deception being promulgated.

    • Elizabeth

      Calvin, I had to phone DCC for my copy of City Talk – the distributors never make it to the central city post slots that NZ Post does. Sigh. Should be in tomorrow’s post, great excitement. Hopefully What if? can do something fun to the offending item to assist your message to the hapless Rodders. I wonder if he had to run the proof across acting CEO Athol Stephens’ desk before the ‘magazine’ went to print? That would be interesting!

      Meanwhile read it online (the size of file will make dialup customers squirm… seriously DCC, not everyone can afford broadband at home or make it to the library):
      City Talk September 2011 (PDF, 4.8 MB)
      This edition features articles about Happy Campers Catered For, School Ties, South Dunedin, Heritage Building Back in Action, Your Responses to Guide Future Planning, Old and New at Masters Games.

      Extra extra:
      City Talk September 2011 – RWC 2011 Insert (PDF, 1.1 MB)
      Your guide to the Rugby World Cup.

      Find previous issues of City Talk at:
      http://www.dunedin.govt.nz/your-council/city-talk-magazine

  3. Peter

    Good explanation of the real costs, Calvin. Rodney probably will need to consult the DCC/CST Propaganda Bureau before responding. The ‘on budget’ line for Malcolm’s ‘Great Leap Forward’ will take time to change before the masses are re-educated to a new revisionist line that hopefully gets closer to the truth.

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