Monthly Archives: October 2012

Dunedin City Council – all reports posted, belatedly!

Annual reports for council-owned companies were withheld from public and media scrutiny, without notice, prior to the council meeting held on Monday, 29 October 2012. The Mayor of Dunedin Dave Cull and DCC chief executive Paul Orders are individually responsible for deliberately withholding this financial information. Although, along with them, we suspect other players in the woodpile.

### ODT Online Wed, 31 Oct 2012
Report about stadium loss slips under radar
By Chris Morris
A worse-than-expected $3.2 million loss recorded by the company running Dunedin’s Forsyth Barr Stadium did not rate a mention at this week’s Dunedin City Council meeting. It emerged yesterday Dunedin Venues Management Ltd and Dunedin Venues Ltd’s annual reports had quietly slipped through Monday’s full council meeting without a question or word of debate. There had been no mention of DVML or DVL on the meeting’s public agenda, and it appeared the reports had not been circulated publicly, to media or even some council staff, as required, in the days before the meeting, the Otago Daily Times discovered yesterday.
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DUNEDIN CITY COUNCIL AGENDA
MONDAY, 29 OCTOBER 2012, 2.00 PM
COUNCIL CHAMBER, MUNICIPAL CHAMBERS29 October 2012

Agenda – Council – 29/10/2012 (PDF, 118.9 KB)

Report – Council – 29/10/2012 (PDF, 77.9 KB)
ISCOM Approved Out of Water Supply Area Connection – Mr J D MacDonald, 3509 Sutton-Clarks Junction Road, RD 2, Outram 9074

Report – Council – 29/10/2012 (PDF, 1.1 MB)
Approval and Adoption of Annual Report

Report – Council – 29/10/2012 (PDF, 788.2 KB)
Vehicle Access John Wilson Ocean Drive

Report – Council – 29/10/2012 (PDF, 4.6 MB)
Speed Limits Bylaw Review

Report – Council – 29/10/2012 (PDF, 978.0 KB)
Speed Limits – Safer Speeds Demonstration Area

Report – Council – 29/10/2012 (PDF, 1.8 MB)
Submission on the Local Government Regulatory Performance Issues Paper

Report – Council – 29/10/2012 (PDF, 155.1 KB)
Meeting Schedule for 2013

Report – Council – 29/10/2012 (PDF, 1.2 MB)
Aurora Annual Report 2012

Report – Council – 29/10/2012 (PDF, 1.8 MB)
Delta Annual Report 2012

Report – Council – 29/10/2012 (PDF, 813.7 KB)
Dunedin International Airport Annual Report 2012

Report – Council – 29/10/2012 (PDF, 1.0 MB)
Dunedin Venues Limited Annual Report 2012

Report – Council – 29/10/2012 (PDF, 1.1 MB)
Dunedin Venues Management Limited Annual Report 2012

Report – Council – 29/10/2012 (PDF, 225.0 KB)
Taieri Gorge Railway Annual Report 2012

Report – Council – 29/10/2012 (PDF, 2.8 MB)
Dunedin City Treasury Annual Report 2012

DCC Link

### ODT Online Wed, 31 Oct 2012
Stadium finances dismay
By Chris Morris
Dunedin Mayor Dave Cull says the Forsyth Barr Stadium’s finances are “not sustainable”, after confirmation the company running the venue lost nearly $1 million more than expected in its first year of operation. The result was contained in Dunedin Venues Management Ltd’s 2011-12 annual report, released to the Otago Daily Times yesterday, which showed the company lost $3.2 million in its first year. That was $814,000 worse than the $2.4 million loss forecast in May, when DVML’s revelations of a half-year, $1.9 million loss prompted the council to launch a review of the entire stadium operation.
A copy of Dunedin Venues Ltd’s annual report was also released yesterday, and showed the company that owned the stadium – and received rent from DVML – recorded a $4.312 million loss for the same period.
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Posted by Elizabeth Kerr

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Filed under Business, DCC, DCHL, DVL, DVML, Economics, Media, Name, People, Politics, Project management, Property, Stadiums

Cull’s council takes business away from retailers

Mayor refuses to recognise chaos created by buses and council-imposed parking changes in the CBD.

Dunedin City Council moves to activate commercial activity in the city’s warehouse district south of the Queens Gardens pose risks for existing business, gallery owner says.

### DScene 31 Oct 2012
Businesses slam council focus (page 5)
By Wilma McCorkindale
David McLean was adding his voice to jeweller Brent Weatherall’s recent criticism of the council’s support of business in the city. Weatherall said the Dunedin City Council (DCC) was dictatorial rather than consultative on some aspects of its economic development strategy, in the wake of a battle over the proposed council banning of footpath signs. Otago Chamber of Commerce retail committee members believed consultation was largely ignored, Weatherall said.

The council needed to focus on parking concerns and attracting businesses into empty main street shops.

Constant requests for a CBD shuttle appeared to have been ignored, even though [McLean] mooted it several times. He believed a free or cheap shuttle would help circulate shoppers throughout the city business district. The Otago Regional Council, which administers public transport in the city, did not have a responsibility for keeping activity going in the CBD, he said. “And yet buses are an issue for that.”

Transport issues in the city held the town to ransom, especially struggling businesses south of the Octagon, some of which had already been forced to shut. “Now we’ve got a focus on the new warehouse district. They’re going to end up with a city ghost town.”

Concerns over loss of main street parking, replaced in some cases by bus stops – with buses sitting on them pumping out dirty diesel – remained a problem. [McLean] had repeatedly asked for free 30-minute parks to be reinstated in the main street to encourage people into the Princes St side of the Octagon. However, the loss of parks continued to be an issue in the wake of council’s botched 2009 parking restructure, he said.

“Council is very aware of the strength of the main street – of the main shopping street,” Cull said. “We wouldn’t do anything to compromise that.”

Dunedin Mayor Dave Cull said the council consulted widely with the business community as well as those in the wider community, and that such decisions did not always please everyone. Some may have misunderstood the focus of the proposed warehousing precinct, which was intended to have a creative and residential focus. Cull understood parking issues had been sorted.
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Register to read DScene online at http://fairfaxmedia.newspaperdirect.com/

Related Post:
17.10.12 “But there’s more to Dunedin than just bloody cruise ships”

Posted by Elizabeth Kerr

24 Comments

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

NZIER on big events #RWC2011

When a new stadium and RWC 2011 at Dunedin were first floated as ideas we easily saw them as losers.

### ODT Online Tue, 30 Oct 2012
Business
Big events don’t make host countries richer: NZIER
By Jamie Gray
Big events like the Rugby World Cup do not make the host countries richer, independent economic research group NZIER said. NZIER said major international events tended to “suck in” visitors from before and after the time they are held, creating a displacement effect. It said most event analysis doesn’t stack up because it missed the displacement effects. “It means the benefits are often far smaller than people think,” NZIER said in a report. The displacement effect meant the net number of visitors an event generates is much lower than the visitors to the event, and NZIER said the Rugby World Cup 2011 was a good example of this. “We estimate there was little overall boost to visitor arrivals because there were fewer visitors before and after the 133,000 international visitors that came to New Zealand for the tournament,” it said. “Crucially, domestic tourism is displaced expenditure that would occur elsewhere in the economy. This significantly reduces the overall benefit from the events. Simply put, major domestic events do not make New Zealanders any wealthier.”
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NZIER – established in 1958 as the New Zealand Institute of Economic Research Inc – is a non-profit incorporated society based in Wellington. Its team of economists is one of the largest in New Zealand outside government.

http://nzier.org.nz/publications

Report: The host with the most? Rethinking the costs and benefits of hosting major events (30 October 2012)

Posted by Elizabeth Kerr

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Filed under Architecture, Business, Construction, CST, DCC, DVML, Economics, Events, Geography, Media, Name, ORFU, People, Politics, Project management, Property, Site, Sport, Stadiums, Town planning, Urban design

DCHL ‘run by a bunch of fools’ -agreed

Comment received.

JimmyJones
Submitted on 2012/10/30 at 5:43 pm

DCHL is financially very sick: if it was a horse, you would have to shoot it to put it out of its misery. It is amusing to see how sensitive Dave Cull is to Lee Vandervis stating-the-bloody-obvious, that DCHL doesn’t make enough real money to pay its interest and dividends to the DCC, as well as the subsidies to DVL and DVML.
The DCC are forcing DCHL into more and more debt every year. For the 5 years that I have Annual Reports, DCHL has always paid for its distributions to the DCC by increasing their debt. Not just part of the distributions are borrowed money, but the whole amount each year.
In 2012 they added $50.3 million to their debt (page 37), so you can see that even without being forced to provide distributions of $23.2 million, it already had a severe cash-flow shortage. This negative cash-flow is the result of their own incompetence from spending very large amounts on new investments and expanding their operations. The incompetence comes from the fact that there has been no expansion in profits as a result of this low quality spending. They seem to be followers of the Homer Principle (if something doesn’t work, keep doing it), because not once in the last five years have they earned enough cash to pay for their spending on new stuff. Poor-old Dave and the new-guy, Paul, don’t seem to understand the problem. Let me summarize –

● DCHL is heading towards bankruptcy
● It is going bankrupt because DCC councillors and staff have been using it like a magic money-box where distributions are paid from debt (debt that doesn’t show up on DCC books – because of their choice)
● The LTP shows that they fully intend to continue this foolish practice, despite the DCHL Chairman’s aspirational comments to the contrary and Mayor Cull foaming at the mouth about it
● DCHL has been, and mostly still is, being run by a bunch of fools that need to be kept well away from anything financial or owned by the People Of Dunedin.

### ODT Online Tue, 30 Oct 2012
Mayor sees red over Vandervis questions
By Chris Morris
Sparks flew as Mayor Dave Cull and Cr Lee Vandervis clashed repeatedly over debt and dividends at yesterday’s Dunedin City Council meeting. In what at times resembled a running battle, an angry Mr Cull eventually accused Cr Vandervis of giving in to his “obsession” and threatened to prevent him from speaking. The pair found themselves at loggerheads over reports detailing Dunedin City Holdings Ltd’s latest financial results and the council’s annual report.[…]Cr Vandervis attacked the figures at yesterday’s meeting, claiming the entire $23.2 million – which helped keep council rates increases to a minimum – had been funded from loans.
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Related Posts and Comments:
29.10.12 DCC consolidated debt substantially more than $616m…
26.10.12 DCHL borrowed $23 million to bail DCC
26.10.12 DCHL: New directors for Aurora, Delta, City Forests
25.10.12 Dunedin Venues Limited – 2012 Annual Report now 2 months overdue
17.10.12 The only thing up…. (for sale)
17.10.12 DCC on DCHL, subsidiaries and DCTL
12.10.12 DCHL, subsidiaries and DCTL
28.9.12 The End of The Golden Weather?
25.9.12 Cull’s state of denial…
24.9.12 DCC against imposition of local government reforms
11.9.12 Delta Utility Services Ltd
6.9.12 DCC pays out $millions to cover loss making stadium…
30.8.12 DCC seen by Fairfax Business Bureau deputy editor Tim Hunter
7.8.12 DCC, DCHL, debt, democracy (and professional rugby)
26.7.12 Cull’s council thinks $750,000 per annum to DVML…

Posted by Elizabeth Kerr

33 Comments

Filed under Stadiums

Stadium turf-day +@#!$%^*&

Tweet (9:28 AM – 30 Oct 12):

@ForBarrStadium #CommunityPitchInvasion Our turf is open to you this Sun (4 Nov) to enjoy & use as you would your local park, 2:30-4pm ow.ly/eRvP8

Does this mean the hallowed turf is completely poked?
While the pitch at Carisbrook is maintained to perfection…

Posted by Elizabeth Kerr

10 Comments

Filed under DVML, Events, Property, Site, Sport, Stadiums

DCC consolidated debt substantially more than $616m to June 30, 2012

Your council doesn’t want you to know that.
Massage. Lack of accountability.

### ODT Online Mon, 29 Oct 2012
Council debt to peak at $600m
By Chris Morris
The Dunedin City Council and its companies are about to reach the top of a $600 million debt mountain and start down the other side. However, it was likely to be years before there was room on the council’s books for any major new projects, potentially leaving the council exposed if “something untoward came along”, Mayor Dave Cull said.

Council figures showed consolidated debt – spread across the council and its companies – had risen to $616 million by the end of the 2011-12 financial year on June 30, including core council debt of $216 million.

Overall debt was expected to peak in the next eight months, but would then begin a gradual decline as two decades of major capital projects and upgrades came to an end. The details are contained in the council’s latest annual report, for the year to June 30, to be considered at today’s full council meeting.
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Dunedin City Council
Meeting: Monday, 29 October 2012
Council Chamber, Municipal Chambers, at 2pm

Agenda – Council – 29/10/2012 (PDF, 118.9 KB)

Report – Council – 29/10/2012 (PDF, 1.1 MB)
Approval and Adoption of Annual Report

Other reports

At ODT Online:

This is what we owe
Submitted by russandbev on Mon, 29/10/2012 – 10:09am.
Based upon the $616m debt figure, which is not necessarily the correct level of debt, each ratepayer owes $10,807. Compare this to Kaipara where a debt level of $4,395 per ratepayer was considered to be unsustainable and a commissioner was appointed by Government. This Council is out of control and does not yet recognise that the decision to build the stadium based on the PWC proven falsehoods was wrong, and by the continued pouring of money into keeping it open makes no sense whatsoever.

Posted by Elizabeth Kerr

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Filed under Business, DCC, DCHL, DVL, DVML, Economics, Media, Name, Politics, Project management, Property, Site, Sport, Stadiums

Govt to open up more land for houses

Twenty years ago the average price of a house cost around four times the average income but now it is nearly double that.

### tvnz.co.nz 5:30AM Monday October 29, 2012
‘No silver bullet’ for housing affordability crisis – PM
Source: ONE News
Prime Minister John Key says fast tracking the supply of land should help solve the current housing affordability crisis. The long-awaited housing plan is due to go before Cabinet today to be signed off, seven months after the Productivity Commission released a report on housing affordability. […] “The sorts of things the Productivity Commission is talking about, and the Government’s going to adopt, is how do we speed up the supply of land so that’s both what we call greenfields, paddocks sitting out there that you extend the urban limit, and secondly brownfield development, so that’s where you don’t have a lot of intensification in a certain area but you allow that to happen more quickly.” […] The soaring price of property has been blamed on a shortage of availability, and Key told TVNZ Breakfast this morning that changing the Resource Management Act (RMA) to speed up the development of land will help solve the supply and demand issue. He said the RMA process at the moment it is often arduous and long – to the detriment of the consumer.
Read more + Videos [Link not available]

New Zealand Productivity Commission
http://www.productivity.govt.nz/

“We’ve got to be careful about Government not blundering in here too much into council business because we don’t understand all the local issues.”

The Government plans to change local government legislation and the Resource Management Act to make it easier for developers to build houses. Finance Minister Bill English wants to make more land available for housing – and to speed up consent processes. [Today] he will take a paper to Cabinet, outlining a response to a Productivity Commission report on housing affordability. Finance Minister Bill English said the cost of building is too high and there is a supply shortage, particularly of good quality, lower priced housing.
DOMINION POST

“The Government owns $15 billion worth of houses, and, in most cities, the best opportunities … [are] on the government-owned Housing Corp land.”

Tackling the high cost of home ownership:
* Government will work with councils on urban planning to make it easier to build houses on “greenfield” sites outside city boundaries and on “brownfield” sites within cities.
* Further Tamaki Transformation-style redevelopments of state housing assets will be done.
* Changes will be made to the Local Government and Resource Management Act to make it easier, quicker and cheaper to build houses.
* Building costs will be reduced through work on the Building Act.
NZ HERALD

### radionz.co.nz Monday 29 October 2012
Morning Report with Geoff Robinson & Simon Mercep
07:15 Government to change rules to make houses more affordable
The Finance Minister, Bill English, has indicated that changing the planning and consent process is among the changes. (4′57″)
Audio | Download: Ogg Vorbis MP3 | Embed

### radionz.co.nz Monday 29 October 2012
Morning Report with Geoff Robinson & Simon Mercep
08:12 Cabinet to decide today to relax planning rules for housing
The Cabinet will decide today on changes aimed at making new houses more affordable. (3′13″)
Audio | Download: Ogg Vorbis MP3 | Embed

### radionz.co.nz Monday 29 October 2012
Nine To Noon with Kathryn Ryan
11:07 Politics with Matthew Hooton and Josie Pagani
Talking today about the Governments response to the productivity commission. (24′02″)
Audio | Download: Ogg Vorbis MP3 | Embed

Posted by Elizabeth Kerr

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Filed under Architecture, Business, Construction, DCC, Design, Economics, Geography, Heritage, Media, Name, People, Politics, Property, Town planning, Urban design