Daily Archives: September 10, 2012

This is all painfully familiar…

blog.svconline.com

The trials of the Phoenix Coyotes, the least popular hockey team in the NHL, offer a lesson in public debt and defeat.

### theatlantic.com Sep 7 2012, 2:37 PM ET
Business
If You Build It, They Might Not Come: The Risky Economics of Sports Stadiums
By Pat Garofalo and Travis Waldron
In June, the city council of Glendale, Arizona, decided to spend $324 million on the Phoenix Coyotes, an ice hockey team that plays in Glendale’s Jobing.com Arena. The team has been owned by the league itself since its former owner, Jerry Moyes, declared bankruptcy in 2009. For each of the past two seasons, Glendale has paid $25 million to the league to manage the Coyotes, even as the city faced millions of dollars in budget deficits. Now, Greg Jamison, who is also part of the organization that owns the NHL’s San Jose Sharks, is making a bid for the team, and would therefore be the beneficiary of the subsidies.

“Take whatever number the sports promoter says and move the decimal one place to the left. Divide it by ten. That’s a pretty good estimate of the actual economic impact.”

To put the deal in perspective, Glendale’s budget gap for 2012 is about $35 million. As the city voted to give a future Coyotes owner hundreds of millions of taxpayer dollars, it laid off 49 public workers, and even considered putting its city hall and police station up as collateral to obtain a loan, according to the Arizona Republic. (The latter plan was ultimately scrapped.) Overall, Glendale is not only on the hook for $15 million per year over two decades to a potential Coyotes owner, but also a $12 million annual debt payment for construction of its arena. In return, according to the Republic, the city receives a measly “$2.2 million in annual rent payments, ticket surcharges, sales taxes and other fees.” Even if the Coyotes were to dominate the league like no other in recent memory and return to the Stanley Cup Finals year after year, the city would still lose $9 million annually.

“It’s kind of a perverse argument that taxpayers should subsidize this because businesses depend on this deal that isn’t viable.”

This is an altogether too common problem in professional sports. Across the country, franchises are able to extract taxpayer funding to build and maintain private facilities, promising huge returns for the public in the form of economic development.
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Posted by Elizabeth Kerr

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Filed under Architecture, Business, Construction, Design, Economics, Events, Geography, Media, Project management, Property, Site, Sport, Stadiums, Urban design

Talking up modern office space to create demand…

With this kind of messaging in ODT (see below) – via Colliers – expect more consent applications for demolition and the construction of new buildings? Or was that “stand alone car parks” throughout Dunedin’s heritage fabric? See the ruination of townscape and listed precincts by a handful of rascal building owners who will not “build” in upper Stuart St, High St, and pending for Rattray St, Dunedin. Who has the money available for new-build officing in the CBD?

In Dunedin, it’s common knowledge in the building sector that strengthening an existing heritage building is approximately 10% of the cost of demolishing and erecting a new building (of similar scale) on the same site. People are doing their sums! Why else is fabric retention making economic sense right now for those actively engaged in heritage building investment and enhancing building performance. Good numbers of enlightened property owners* are at work in the private sector, keeping up the fabric, who don’t believe in demolition by neglect.

*Prospective tenants, talk to these people!

### ODT Online Mon, 10 Sep 2012
Modern office accommodation in demand
By Simon Hartley
Commercial property rents in Dunedin’s central business district have increased slightly over the past year, with other data revealing Dunedin offers employers the lowest operating costs and the most space for employees. However, Christchurch’s earthquakes have sent jitters throughout the commercial property sector around the country, especially for older buildings and how they may be affected by insurance premium hikes. Colliers International, which monitors 160,000sq m of office space in Dunedin, has just released separate annual reports, on CBD office space nationwide and a workplace report. As Dunedin lease renewals come up, Colliers was seeing a push from tenants, especially those in older buildings, to relocate to modern office accommodation.
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Posted by Elizabeth Kerr

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Filed under #eqnz, Architecture, Business, Construction, Design, Economics, Geography, Heritage, Media, Name, People, Politics, Project management, Property, Site, Town planning, Urban design

John Wilson Ocean Drive, permanent reminder to all of DCC incompetence

There are larger and more prominent reminders ‘lying’ around the city but this stretch of road shows how something so very simple escapes councillor intelligence and pointed resolution.

John Wilson Ocean Drive was closed from August 2006, to allow construction of the Tahuna Wastewater Treatment Plant outfall.

### ODT Online Mon, 10 Sep 2012
Countdown to John Wilson Drive decision
By Debbie Porteous
Dunedin city councillors will next month decide the final fate of John Wilson Ocean Dr – again. If the decision to reopen the road to traffic at certain times of the day – as decided last year after extensive public debate and consultation – goes ahead, it is hoped road will be resealed by the end of the year and reopened to vehicles in early 2013.
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Related Posts:
3.1.11 Better consultation…
26.8.10 John Wilson DRIVE
5.8.10 John Wilson Ocean Drive – QUICK submissions due 6 August to DCC

Old news…

### ODT Online Tue, 15 Dec 2009
Mayor says it with flowers
By Chris Morris
Dunedin Mayor Peter Chin congratulated assembled councillors and staff for their work on the year’s major projects and issues, including the controversial Forsyth Barr Stadium, town hall redevelopment and debate over John Wilson Ocean Dr.
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Posted by Elizabeth Kerr

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Filed under DCC, Design, Economics, Media, Politics, Project management, Urban design