Stadium costs $23.4144 million per annum

Received from Bev Butler
Thu, 26 Jun 2014 21:43:05 +1200

Cover note:
According to the latest DVL/DVML six monthly reports the debt is growing not reducing – that is a concern. The $146.6 million debt was passed over to DVL, many millions were poured into servicing the interest and capital repayments for this debt but even with that happening the combined short term/long term debt of DVML/DVL now stands at $157.6 million – $11 million more! The long term debt of $146.6 million has been reduced to $138.8 million but short term debt stands at $18.8 million. It is a major concern that the combined debt is growing not reducing – and this is during the stadium’s honeymoon period.

———

From: Bev Butler
To: Sue Bidrose; Sandy Graham; Kate Wilson; Richard Thomsom; Chris Staynes; John Bezett; Lee Vandervis; Hilary Calvert; Doug Hall; Andrew Whiley; Mike Lord; David Benson-Pope; Neville Peat; Andrew Noone; Jinty MacTavish; Dave Cull; Aaron Hawkins
CC: Calvin Oaten; Grant McKenzie
Subject: Stadium $23.4144 million per annum
Date: Thu, 26 Jun 2014 21:43:05 +1200

Dear Mayor Cull and Councillors

As a result of further discussions and more information obtained through further searching Council documents Calvin Oaten and I have updated the annual stadium costs which now stand at $23.4144 million. (See attached word document). No changes have been made to the spreadsheet I sent earlier which I prepared.
There are some costs which have not been included due to the difficulty in quantifying them to the accuracy of which I would be comfortable.

This $23.4144 million figure does not include any payments which may have not been fully transparent through the Council books.
By this I mean that I understand there were approaches by Darren Burden, former CEO of DVML, to obtain payments for bills which DVML were unable to pay but which another Council Department had shown some willingness to transfer their surplus unspent funds from that Department to DVML. In that particular case, I understand the transfer did not happen. However, I have no access to information as to whether this had occurred on previous occasions through other departments.

█ Also attached are Terry Wilson’s calculations coming from a different angle but which come to $23.1 million per annum. (See attached spreadsheet prepared by Terry Wilson).

Yours sincerely
Bev Butler

Downloads:
FB Stadium=Annual Ratepayer Costs=V2 (PDF, 9.47 KB)
Stadium Costs $23.4144 million per annum (DOC, 30.5 KB)

Related Posts and Comments:
2.6.14 Stadium costs ballpark at $21.337 million pa, Butler & Oaten
23.5.14 Stadium | DCC DAP 2014/15 ● Benson-Pope asserts himself
9.5.14 DCC Draft Annual Plan 2014/15 Submission by Bev Butler

Posted by Elizabeth Kerr

15 Comments

Filed under Business, Carisbrook, DCC, DCHL, Democracy, DVL, DVML, Economics, Name, New Zealand, People, Politics, Project management, Property, Site, Sport, Stadiums

15 responses to “Stadium costs $23.4144 million per annum

  1. John

    Has this been reported in the ODT?

  2. Elizabeth

    ODT has a mental blank where stadium costs are concerned – with no ability or desire to host a panel of experienced independent experts who – for public good – would examine the figures set out by Bev, Calvin and Terry based on the DCC books.

    This is what comes of ODT having a vested interest in the stadium as well as the mayoralty~!!

    The Dunedin City Councillors are acting like morons might do running their little primary school piggy banks. Thick, incompetent, hypocritical, and ruthless with citizens’ welfare – willing to put the people’s security at extreme risk. Tell me how these councillors can face the have-nots (in particular, increasing numbers of low income individuals and families, and seniors without nest eggs – all who can’t afford proper food, power, clothing, transport, shelter and medical/dental services) with any credibility whatsoever.

    Mayor and Councillors? To the public gallows with the blimmin’ lot.

  3. cinimodjunior

    How come that such a scandalous scenario fails to find its way to our provincial broadsheet? It should be in bold lettering on the front page. Allied Press stands condemned that they would sanction and ‘give shelter’ to such septic behaviour. It’s not that they don’t know the facts, so our only conclusion is that the management of Allied Press is nothing more than a shabby bunch of four lettered words – unbefitting of any sense of moral fibre. They are septic to the core.

  4. Peter

    I remember even Cr Richard Thomson a while back referred to the stadium financials as a train wreck waiting to happen. He is right, but it appears we are heading for the collision… whether we like it or not. There appears to be no consensus within council to do anything except establish a stadium review…. to spend more.
    The news in today’s ODT re the cycleways blowout in South Dunedin is symptomatic of a problem where dreams overtake reality in terms of cost. We had this with the stadium. We are playing out this scenario all over again.
    I am resigned to the inevitable. I am only pleased that I am not responsible for this mess.
    We will have a commisioner before too long.

    • Hype O'Thermia

      Peter – “We will have a commisioner before too long.” Dreamer!
      How long have we been imagining that the S.N.A.F.U. that progressed to become the F.U.B.A.R. must surely attract the attention of __x.y.z__ from Rodney Hide when he was Minister of Local Government, to investigators and regulators and auditors and enforcers of local government rules, and what’s happened? A quick flick-over with Bam C-No-Evil on a soft cloth, that’s what.
      Meanwhile the DCC shuffles uneasily trying to sit on the clusterf*ck while engaging in distractions, cycling, arts.
      By now it’s cluster upon cluster, just like in one of those Fugly Disease Reality TV programs with a May Upset warning, just like a monstrous agglomeration of haemorrhoids.
      Peter, there may well be some pile ointment in a cupboard in Wellington. Don’t count on anyone bring it down here though, much less applying it where it’s needed.

      • Anonymous

        There is a line in the sand which will trigger the appointment of a commissioner. This will be a breach of the debt limits and/or a refusal of lenders to extend the terms of the current loans. Leading to a default. I predicted some years ago that a default is almost inevitable and so far everything is on track.

  5. Hype, do you reckon they should all be made to sit with their ‘bare bums’ in the snow? At least it would salve their haemorrhoids.

  6. Mike

    I see today’s Dominion is reporting that Wellington is paying $750,000 for their two soccer games, I think we can safely assume that DVML is paying at least half that ($375,000) of ratepayers’ money.

    They also say that DVML has only sold 6300 seats so that would mean that the ratepayers will be paying roughly $50 of the price of each ticket. Given that tickets cost $59 with some as low as $25 I think we can assume that we have another massive loss in the offing.

    Subsidising more than 80% of ticket prices does rather make a mockery of the whole ‘you have to spend money to make money’ event funds BS we’ve been fed.

  7. When the Mayor and council provide an annual $400,000 Events Attraction Fund what do you expect DVML to do if not attract events? Anything will do just as long as it gets the money spent. Otherwise it might be turned off. Perish that thought.

    • Mike

      Yes it does rather look like they blew the entire fund on one soccer game I guess that they know there aren’t going to be any more concerts in the coming year.

  8. Jock strap

    It is pitiful to watch as our local politicians get a smell of self-centred power through an attack on John Key and the National Party, but when it comes to the corruption involving rugby, the stadium, and the physio pool the silence is deafening. They have certainly got their priorities right. Represent their own interests, while pretending to represent Dunedin.

    • JimmyJones

      I wonder what sort of corruption you mean Jock strap? Do you mean that the SDHB manufactured the crisis by underfunding the physio pool for several years and then threatened to completely stop ongoing funding, with the expectation that the sad story would help to divert funds from deserving charities and ratepayers wallets? Or perhaps you mean how two-timer Richard Thomson (SDHB + DCC) knowing of the manufactured sad story, approached DCC council staff and a few of his team of councilors who secretly made a decision to assist the pool long before all the other councillors were officially asked?

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