Daily Archives: May 9, 2012

DVML report: $1.9 million loss

### ODT Online Wed, 9 May 2012
Dunedin stadium posts $19m loss
By Chris Morris
The size of the financial hole occupied by Dunedin Venues Management Ltd – the company tasked with running the Forsyth Barr Stadium – has been confirmed. Figures released at a media conference this afternoon showed the company had lost $1.9 million in the first six months of the 2011-12 financial year. Projected full-year results were yet to be released, but were expected to be worse.

Losses were now also expected for the following two financial years, and expected to be confirmed when DVML released an updated statement of intent later today.

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Posted by Elizabeth Kerr

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Filed under Business, Concerts, DCC, DVML, Economics, Events, Media, ORFU, People, Politics, Project management, Property, Site, Sport, Stadiums

D Scene: fubar, another revelation

“Forsyth Barr have had the advantage of over two-and-a-half years of advertising locally, nationally and internationally without digging into their own pockets.” -Bev Butler

### D Scene 9.5.12
Up in lights – you paid (page 5)
By Wilma McCorkindale
Dunedin ratepayers borrowed money to cover naming rights funding while waiting for Forsyth Barr to stump up for Dunedin’s stadium. The revelation comes from stadium critic Bev Butler who said official documented forecasts showed under the original deal with the Carisbrook Stadium Trust, Forsyth Barr’s payments were ‘‘effectively two years overdue’’ by the time of its first single monthly payment towards naming rights in September 1, 2011. Details gleaned under the Local Government Official Information and Meetings Act showed Forsyth Barr made no payments until September 1, 2011, Butler said. “It is now plain that the much heralded millions of dollars promised upfront in 2009 by Forsyth Barr for the naming rights to the new Dunedin stadium just never happened.”
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Losing friends (page 6)
By Mike Houlahan – Editor
As biting the hand that feeds you goes, the lawsuit members of the Otago Rugby Football Union are proposing to take against Mayor Dave Cull takes some beating. The merits of the case are for the court to decide, but there is a different burden of proof in the court of public opinion. With its very existence hanging on the good grace of the Dunedin City Council – which decided, against strong public sentiment, to forgive half a million dollars of ORFU debt ratepayers could ill-afford to write off – the rugby union needed to be apologetic, and forthright in dealing with the circumstances which got it in trouble.
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Moneytalks : Business News
Dunedin extends helping hand (page 9)
By Paul Gorman and Mike Houlahan
Dunedin is gearing up to play a major role in the rebuild of Christchurch but is aware of the risks of losing tradespeople and future business further north. The South Island’s second city is positioning itself to supply materials and services to Christchurch while recognising the Canterbury earthquakes have also affected its economy. There is also a proposal to provide special train services to carry workers between the two cities. The Dunedin City Council has calculated that the expected $20 billion to $30b cost of the rebuild is up to 6.6 times Dunedin’s total annual gross domestic product. Otago Chamber of Commerce chief executive John Christie said Dunedin was not eyeing up Christchurch opportunities in any ‘‘predatory manner’’, but having a strong Christchurch was good for the South Island.
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Posted by Elizabeth Kerr

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Filed under #eqnz, Business, Construction, CST, DCC, DVML, Economics, Geography, Media, ORFU, People, Politics, Project management, Property, Site, Sport, Stadiums