Daily Archives: March 20, 2013

Carisbrook: Shifting explanations for DCC $7m spend

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### DScene 20 Mar 2013
Rant or rave: your say
Missing million (pages 8-9)
By Terry Wilson – Parkside
We see in D Scene that the Dunedin City Council paid $7 million for Carisbrook while their confidential valuation was for only $2.5m.
Mayor Dave Cull said that the purchase was to shore up the finances of the Otago Rugby Football Union.
If the real purpose of the sale was to donate an overpayment of $4.5m to the ORFU, then the DCC has misled the public during the public consultation on the matter. It might be inappropriate for me to suggest that the $7m non-confidential valuation of Carisbrook was procured by the DCC for the purpose of justifying the undisclosed $4.5m overpayment to the ORFU.
The validity of this valuation seems very questionable to me. Following this $7m payment, the ORFU required a further DCC bailout. One factor in this is that they only received $6m, not $7m.
The DCC has been questioned many times about what happened to the missing $1m, but they won’t say.
I think the public wants to see more honesty from the DCC.

Mayor Dave Cull replies: ‘‘$7 million was paid to the ORFU by way of $5m in cash and a $2m offset of a loan of $2m previously lent from the council to the ORFU.’’ #bookmark

Posted by Elizabeth Kerr

12 Comments

Filed under Business, DCC, Economics, Hot air, Media, Name, ORFU, People, Politics, Project management, Property, Site, Sport, Stadiums

Stadium: Ombudsman investigation confirms private funding

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### DScene 20 Mar 2013
Raw deal alleged on stadium rights (page 5)
By Wilma McCorkindale
Dunedin’s flash new stadium gets $7 million every 10 years in private funding, an Ombudsman investigation reveals. Newly released documents show the stadium receives $715,000 annually – $7,150,000 over 10 years.
D Scene has learned from an informed source that $5m of that funding comes from investment advisory firm Forsyth Barr in return for naming rights of the new $200m-plus state-of-the-art arena.
Stadium lobbyist Bev Butler said the new figures showed ratepayers got a raw deal on private funding. ‘‘In December 2007, Brian Meredith of The Marketing Bureau, commissioned by the Carisbrook Stadium Trust, addressed the council stating that the head naming rights were worth more than $10m,’’ Butler said in a statement.
‘‘This has been reported twice in the media. The mayor, councillors and public were left with the perception that Forsyth Barr had signed up for the rights for $10m. This latest revelation shows that this was not the case and that Forsyth Barr ended up paying no more than $5m for the naming rights.’’
Butler, who initiated the latest investigation, said the rest of the annual $715,000 in private funding came from other companies who had a high profile in the stadium.
{continues} #bookmark

Posted by Elizabeth Kerr

4 Comments

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