Reminder to DVML | Annual cost for Stadium stings renters ratepayers $25M

16.12.15 ODT: Concerts a $20m bonus
International promoters are eyeing Dunedin for regular sell-out concerts after Forsyth Barr Stadium delivered strong ticket sales and a nearly $20 million boost to the city’s economy […] DVML chief executive Terry Davies said the results showed the stadium was delivering on “two key drivers” – delivering economic benefits and a boost to the city’s pride.
http://www.odt.co.nz/news/dunedin/367093/concerts-20m-bonus

Comment at ODT Online:

Stadium economic dis-benefit
Submitted by JimmyJones on Mon, 21/12/2015 – 8:15pm.

DVML claims an economic benefit to Dunedin of $19.7 million for the concerts held this year. Economic benefit figures are notoriously exaggerated, especially when they are provided by someone whose reputation is at stake.

Anyway, it is misleading to claim a $20 million boost to the Dunedin economy without mentioning the annual $25 million (aprox.) cost to renters and ratepayers to fund the stadium. This is a net drain on the local economy and something Mr Davies and Mayor Cull should be ashamed of.

Also, almost none of the citizens forced to pay for this financial disaster receive any financial benefit from this so-called economic benefit – this is a wealth transfer, with a few businesses benefiting greatly at the expense of all the citizens of the city – the many suffer, to benefit the few. On the whole the stadium continues to be a millstone around the neck of Dunedin’s economy.

[ends]

Posted by Elizabeth Kerr

projectimagestreamstadium2-ashxForsyth_Barr_Stadium_ ETFE_Roof_5 of 6

*Images: fubar stadium, Dunedin

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5 Comments

Filed under Business, Concerts, Construction, CST, DCC, Democracy, Dunedin, DVL, DVML, Economics, Events, Media, Name, New Zealand, NZRU, OAG, Ombudsman, ORFU, People, Perversion, Politics, Project management, Property, Sport, Stadiums, Travesty

5 responses to “Reminder to DVML | Annual cost for Stadium stings renters ratepayers $25M

  1. JimmyJones

    Rob Hamlin also mentions this misleading effect of counting only the theoretical economic benefits and ignoring the economic costs (https://dunedinstadium.wordpress.com/2015/11/29/lively-dialogue-with-dvmls-terry-davies-not-lgoima-stadium/#comment-68577). In the case of the DCC Stadium the claimed benefits are $20 million for the concerts held this year and the net cost to the city for each year is about $25 million.

    Rob also reminds us that the annual net costs should also be modified by the multiplier – because the benefits are multiplied, then the detriments should also be multiplied by the same amount so as to know the net economic benefit/detriment. For the Elton John concert the magic multiplier was 1.77 ($14.9m ÷ $8.42). The detrimental effect of the annual costs of about $25 million with the multiplier is therefore $44 million. DVML’s cheerful $20 million benefit is more accurately a net cost to the local economy of $24 million. In those years when there are no big concerts, the net detriment will be close to $44 million.

    • Elizabeth

      JimmyJones, I don’t imagine the DVML Board and least of all DCC wants your cringe-inducing financial message to be ‘commonly understood’ as we bask in the summer of ODT boasting about the wonder of the stadium chief executive. He who brings musicians in the ‘age band’ of 60+ years. Joy for the passive and unmotivated with a toe in their graves.

    • Gurglars

      And Jimmy, if the DCC were using that $25 million for debt repayment rather than life support for the stadium, at current interest rates the debt would be repaid within 40 years, and save some of the staff who have to go at present just to manage the debt within reasonable bounds.

  2. Elizabeth

    TWO NOISE COMPLAINTS FROM MY ADDRESS SO FAR !!!!!!

    Bastards.
    DVML is exceeding its Resource Consent conditions, I believe.
    And I will be looking to prove this is so.
    Thus why I have asked DCC to log both my complaints tonight.

    Black Sabbath – it must be absolutely shitlike inside the stadium itself.
    Fucking morons.

    Oh yeah.
    DCC after-hours service have been told to tell ‘upset people’ that the noise will end at 10:30 PM.

    That is NOT GOOD VENUE MANAGEMENT.

    There will be hell to pay for amorphous bass on MONDAY – here I bloody well come, Terence.

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