Monthly Archives: February 2014

Stadium: a conversation

(tonight at What if?)

Anonymous:
Ask Harlene: how well-developed is the university plan to acquire the stadium? As in “take it off your hands no trouble Guv” as opposed to buy it for book value. Just asking.

Elizabeth:
Ask the winkler Stuart McLauchlan.

Posted by Elizabeth Kerr

30 Comments

Filed under Business, DCC, Name, People, Politics, Project management, Property, Site, Sport, Stadiums, University of Otago

DCC: New audit and risk subcommittee a little too late !!

Dunedin City Council – Media Release
Audit and Risk Subcommittee Appointment Made

This item was published on 26 Feb 2014

The Dunedin City Council has appointed the first of two independent members to its new Audit and Risk Subcommittee. Susie Johnstone, who is managing partner of accounting firm Shand Thomson, Balclutha, has been appointed by the Council as Subcommittee Chair.

Mayor of Dunedin Dave Cull says Mrs Johnstone has a great deal of experience leading audit and risk committees across a range of public sector entities. “We are very fortunate to have someone of Mrs Johnstone’s calibre on the Subcommittee. Her skills, attributes and knowledge will be of huge benefit to the Subcommittee’s work.”

Mrs Johnstone is Deputy Chair of the Otago Polytechnic Council and a director of REANNZ, which is responsible for the provision of an advanced high capacity internet service to the New Zealand research and education communities. She is a Fellow of the New Zealand Institute of Chartered Accountants and a member of its Governance Committee. She has also served on the boards of Tourism New Zealand, the Southland, Otago and Southern District Health Boards, the New Zealand Blood Service and the New Zealand Hockey Federation.

Mrs Johnstone says, “I am looking forward to working with Council and am supportive of their increasing focus on the governance aspects of audit and risk. These matters tend to fly below the radar until something doesn’t go so well so the Council is to be commended for taking the initiative in this area.”

The Audit and Risk Subcommittee has been set up to provide the Council with a degree of comfort that risk is being managed appropriately within the organisation. The Subcommittee’s responsibilities include risk management and internal control and it will oversee governance policies in areas such as conflict of interest, insurance, procurement, risk, fraud, and health and safety. It will also include oversight of the Annual Report.

The Subcommittee will report directly to the Council.

At this stage, the Subcommittee members are Mrs Johnstone, Cr Richard Thomson, Cr Hilary Calvert and Deputy Mayor Chris Staynes. The Council will shortly publicly advertise for a second independent member.

Contact Mayor of Dunedin on 03 477 4000.

DCC Link

Posted by Elizabeth Kerr

12 Comments

Filed under Business, DCC, DCHL, DCTL, Delta, DVL, DVML, Hot air, Name, ORFU, People, Politics, Project management, Sport, Stadiums, What stadium

Hotel: Rosemary McQueen on consent decision LUC 2012-212 (41 Wharf St)

41 Wharf Street, Dunedin 1 (DCC WebMap)41 Wharf Street, Dunedin (DCC WebMap)

Copy supplied.
Also published at Otago Daily Times (page 17).

### ODT Online Wed, 26 Feb 2014
Opinion
Hotel decision was legal, not political
By Rosemary McQueen
Two related misapprehensions run through nearly all the comment on the application to build a 27-storey residential building in the industrial zone.

The first is that the reason the development was rejected was that a minority of noisy nay-sayers objected to the proposal. Yet, had 500 supporters put in submissions and only 4 or 5 naysayers, the decision would have been the same. The decision was not made on the basis of counting heads (though no doubt the planners were gratified that the District Plan’s provisions were so whole-heartedly supported by the populace) but on the basis of law. The developers want to build their accommodation block in an industrial area. Residential activity is specifically excluded from this area and only allowed at the discretion of the court hearing the application. Discretionary treatment can only be accorded if the effects of the variation to what is allowed are minor and the general intention accords with the aims and objectives of the district plan. The applicants’ arguments to this effect were rejected at law – not by counting heads. Until that decision is found to be wrong, or those aspects of the proposal change, it can not proceed.

There is also a view that the the city council could and should have found a way of overturning – or at least of getting round – the planning committee’s decision. This is a misapprehension because the decision is a legal one that can only be overturned by a higher court and the council is not a court. The negotiations that have been taking place have been around trying to find a site and design that complies with the city’s district plan and the developers’ needs. By describing the setback to the development as “red tape” the ODT implied that the development’s lack of progress since being rejected by the planning committee is caused by overweening bureaucracy. But Ms Song has made clear that the site and design are not negotiable. How can the lack of progress be the fault of red tape when the impediment is so clearly the developers’ intransigence, despite having had their application for that site and design turned down because it doesn’t meet the law?

By insisting the proposal is non-negotiable during their discussion with the city, the developers appear to believe that overturning the planning decision is on the discussion’s agenda and within the council’s power. Instead of dismissing any such suggestion, the ODT and the Chamber of Commerce have encouraged them in the view that the council can change or flout the law in order to allow the development to go ahead. Fostering these misapprehensions has led to unnecessary division in the city. It’s time to stop accusing bureaucrats and antis of holding up progress and start explaining why changes to our built environment are not effected by political whim, but are, and need to be, conducted by rule of law that has undergone full democratic process.

ODT Link

Related Posts and Comments:
14.2.14 Hotel: The height of arrogance
25.6.13 Hotel/Apartment Tower decision to be appealed

For more, enter *hotel* in the search box at right.

Posted by Elizabeth Kerr

18 Comments

Filed under Architecture, Business, Construction, DCC, Democracy, Design, Economics, Geography, Heritage, Hotel, Media, Name, New Zealand, People, Politics, Project management, Property, Site, Town planning, Urban design

Stadium costs, read uncapped multimillion-dollar LOSSES

Forsyth Barr Stadium critic Russell Garbutt, of Clyde, is not surprised by reports of looming stadium losses.

### ODT Online Wed, 26 Feb 2014
Opinion
Stadium costs predictable, so why the surprise now?
By Russell Garbutt
The ongoing revelations on stadium losses detailed today (ODT, 21.2.14) come as no surprise to anyone who has closely followed this debacle from when the Otago Rugby Football Union first gathered the Carisbrook working party together until now, when a succession of different managers, directors and councillors are all realising that what was promised is as chalk is to cheese.
While not directly specified in the article, the turnaround of an expected $10,000 profit to a $1,400,000 loss in 2014-15 is in the operational budget, and it seems Sir John Hansen, chairman of DVML, is putting most of the blame for this truly stupendous reversal of fortunes down to costs of running the stadium.

While ratepayers continue to face annual injections of over $9 million into the stadium, this is by no means the real figure.

The ”realities” of the real costs of running the stadium are now being recognised, it seems. But let us all just remember a few things that occurred when the stadium was being proposed and then built.
Read more

Related Posts and Comments:
11.2.14 Stadium: ‘Business case for DVML temporary seating purchase’
24.1.14 Stadium: It came to pass . . .
20.12.13 DVML: No harassment policy or complaints procedure, really?
3.12.13 DVML issues and rankles [Burden’s reply]
30.11.13 DVML in disarray
18.11.13 DVML: Burden heads to Christchurch #EntirelyPredictable
12.10.13 DVML works media/DCC to spend more ratepayer money
4.10.13 DVML . . . | ‘Make the stadium work’ losses continue
20.8.13 DVML foists invoices on DCC
20.6.13 Stadium: DVML, DVL miserable losers! #grandtheftdebt

For more, enter *dvml* or *stadium* into the search box at right.

Posted by Elizabeth Kerr

Leave a comment

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

Carisbrook Stadium Trust: ‘Facts about the new Stadium’ (31.5.08)

The Marketing Bureau ForsythBarrStadiumImage: The Marketing Bureau

### dunedintv.co.nz February 24, 2014 – 7:16pm
Stadium proud of numbers despite opposition and projected losses
The Forsyth Barr Stadium is crowing over numbers through its gates, as the DCC debates a projected $1.4m loss for the facility.
Meanwhile, a stadium opponent is calling for reports from 2008 she says backed claims the stadium would run at a profit.
Ch39 Video

24 February 2014
Reports tabled at the meeting of the Dunedin City Council:

Report – Council – 24/02/2014 (PDF, 566.6 KB)
DVL Financials for the Six Months Ended 31 December 2013

Report – Council – 24/02/2014 (PDF, 638.8 KB)
DVML Financials for the Six Months Ended 31 December 2013

Report – Council – 24/02/2014 (PDF, 47.8 KB)
Statements of Intent – DCHL Group Plus DVL and DVML

Report – Council – 24/02/2014 (PDF, 276.4 KB)
Statements of Intent – Dunedin Venues Ltd

Report – Council – 24/02/2014 (PDF, 284.1 KB)
Statements of Intent – Dunedin Venues Management Ltd

Other reports

****

Media Release
Bev Butler
Monday 24 February 2014

TIME FOR SOME PLAIN, HONEST ANSWERS

Dunedin ratepayers are being informed by Sir John Hansen, Chairman of both Dunedin Venues Management Ltd and Dunedin Venues Ltd, that the projected $10,000 operating profit forecast for 2014-15 is now forecast to be a $1,400,000 loss, with similar or even greater losses forecast in future years. He puts this staggering reversal in fortunes down to the reality of costs of running the stadium, and few events occurring at the stadium.

But even these revelations don’t tell the full story of this stadium debacle and financial scandal.

Accompanying the annual injection of well over $9 million to run the stadium, are all of the costs of servicing the debt to build the stadium. Because these costs reside within DVL, they are not reported on in the DVML forecasts.

However some very basic questions remain unanswered.

Readers of the Otago Daily Times will recall a full-page advertisement placed by the Carisbrook Stadium Trust on the 31st of May, 2008, at the time the stadium project was being considered. Headed up “The Facts about the new Stadium”, it said: “The stadium will be profitable. The funding target establishes a debt free stadium. On this basis the business plan for the stadium shows that it makes a profit. Unlike nearly all other Council owned facilities it will not need annual funding support. This assessment has been confirmed by two of New Zealand’s leading accountancy firms.”

These statements are unequivocal and cannot be misinterpreted.

Bev Butler has, for over a year, had an official request in to Mr Malcolm Farry, Chair of the Carisbrook Stadium Trust, to supply the names of those two leading accountancy firms and for the documentation supporting the validity of the claims to build a debt-free stadium and for it to run at an annual profit. Mr Farry has so far failed to deliver that information as required under the requirements of the LGOIMA.

“Mr Farry leaves me no choice but to submit an urgent complaint to the Office of the Ombudsman. There is no reason whatsoever why Mr Farry shouldn’t supply this information, if it exists. Mr Farry has breached the requirement under LGOIMA to supply this information,” said Bev Butler.

How much notice was taken by members of the public and those Councillors and others who were considering whether it made sense to build a new stadium? Perhaps hard to assess. But surely it must not be too hard for Mr Malcolm Farry to reveal to Dunedin ratepayers just how it was that they would have a debt-free stadium and an annual profit instead of a stadium that is millions in debt and costing ratepayers further millions in its staggering operational losses.

[ends]

odt may 31 2008-1 (pdf cleaned)[click to enlarge]

Related Posts and Comments:
22.2.14 Carisbrook Stadium Trust costs
2.2.14 Stadium: ODT editorial (1.2.14) —Garbutt debunks myths
1.2.14 Stadium: ODT editorial (1.2.14) —“Palpable claptrap” says Oaten
27.1.14 Stadium: No 4 at interest.co.nz
24.1.14 Stadium: It came to pass . . .

For more, enter *cst*, *carisbrook stadium charitable trust*, *carisbrook stadium trust*, or *dvml* in the search box at left.

Posted by Elizabeth Kerr

16 Comments

Filed under Business, Construction, CST, DCC, Democracy, Economics, Geography, Highlanders, Media, Name, New Zealand, ORC, ORFU, People, Politics, Project management, Property, Site, Sport, Stadiums, Town planning, University of Otago, Urban design, What stadium

Earthquake-prone Buildings Amendment Bill

The proposed amendment bill raises significant concerns about the maintenance of current building stock, the character and identity of towns and cities, and the economic and financial wellbeing of provincial councils and their communities. More than 7000 buildings south of Timaru would require upgrading, at a cost of $1.77 billion over a 15-year period.

Town Halls Merge 6

### ODT Online Mon, 24 Feb 2014
Councils aghast changes could cost billions
By Andrew Ashton
South Island councils are expected to offer a ”united front” in opposing new Government building regulations that could cost councils billions of dollars to implement.
Last year the Waitaki District Council joined the Dunedin and Invercargill city councils and the Central Otago, Clutha, Gore, Mackenzie, Southland, Timaru and Waimate district councils to present a joint submission on a discussion paper detailing proposed changes to the way earthquake-prone buildings are managed.
Read more

Posted by Elizabeth Kerr

*Image: Town Halls and auxillary functions (clockwise from top left) Invercargill, Dunedin, Timaru and Oamaru – posterised by whatifdunedin

30 Comments

Filed under #eqnz, Architecture, Business, Construction, Democracy, Design, Economics, Geography, Heritage, IPENZ, Media, Name, New Zealand, NZHPT, People, Pics, Politics, Project management, Property, Site, Town planning, Urban design, What stadium

Mayor Cull ‘handshakes’ Hodgson

Handshake 2

Taxpayers’ Union executive director Jordan Williams questioned whether the Auditor General should be involved. “No wonder this council has a history of financial troubles, they’re running it like a cake stall.”

### Sunday Star-Times Sun, 23 Feb 2014
Mayor Cull defends deal (page A9)
By Hamish Rutherford
Dunedin mayor Dave Cull is defending a “gentleman’s” agreement which saw a former MP paid $3400 for lobbying following a handshake deal. Documents released under the Official Information Act reveal that former Dunedin North MP Pete Hodgson was paid by the council to lobby the Government not to strip core functions of Ag Research Limited from Invermay, near Dunedin.
The council said the main point of contact for the deal with Hodgson was Cull, but could not locate a single email, contract or any other document relating to the agreement. […] “Mr Hodgson did not provide any reports relating to his services,” governance support officer Grace Ockwell said.
See article for more.

SST 23.2.14 Mayor Cull defends deal (page A9)[click to enlarge]

█ The Taxpayers’ Union broke the story, read their media release (24.2.14), and later they blogged it.

Related Post and Comments (today):
12.9.13 Dunedin community v government-led centralisation

Posted by Elizabeth Kerr

*Images: pocketbook.co.uk – handshake; en.wikipedia.org – Dave Cull, Pete Hodgson (re-imaged by whatifdunedin)

33 Comments

Filed under Business, DCC, Economics, Geography, Media, Name, New Zealand, People, Politics