Category Archives: Design

Fletcher Building subject to investigation by NZX

### tvnz.co.nz 11:54am
1 News
Source: NZN
Fletcher Building to be investigated by NZX as company announces much-reduced earnings
The New Zealand stock exchange says it will be investigating Fletcher Building’s additional profit warning for the year ended June 30 and the departure of chief executive and managing director Mark Adamson.
“NZX will be making inquiries into today’s disclosures, given FBU’s continuous disclosure obligations under the listing rules,” the NZX Head of Market Supervision Joost van Amelsfort said in a release.
Separately – in accordance with NZX’s routine surveillance processes – trading ahead of today’s announcement would be assessed in detail, it said.
That would be on top of NZX’s ongoing investigation into the disclosure of FBU’s previous earnings downgrade in March 2017,” it said.
Read more

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### interest.co.nz
Posted in Property July 20, 2017 – 09:13am
Fletcher Building has announced the immediate departure of chief executive Mark Adamson and says operating earings this year will be around $100 million less than previously indicated
By David Hargreaves
Construction giant Fletcher Building says chief executive Mark Adamson is leaving immediately, while the company’s now forecasting operating earnings of around $100 million less than its last forecast.
Additionally, the company says it’s writing down the value of two business units by about $220 million. This will not be a ‘cash’ loss per se, but will carve about 3% off the value of the company’s assets.
The share price fell – down about 8.5% to $7.40.
….The $220 million write-down relates to the Iplex Australia and Tradelink subsidiaries.
Fletcher indicated that most of the reduced earnings forecast would come through two major projects: “A major project subject to previous write-downs, which has required an increase in project resourcing and therefore cost as it nears completion,” and “a second major project where construction timelines and the likely completion date have been extended”.
This is the third major profit warning the company has issued this year. After the last one in March it was speculated – and never denied by the company – that the two projects causing the biggest problems were Government projects; namely the new Sky City International Convention Centre in Auckland and the new Justice and Emergency precinct in Christchurch.
Read more

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Sky City International Convention Centre

Remember the National government waffle:

### ODT Online Wed, 28 Oct 2015
Fletcher signs with SkyCity
By Simon Hartley
SkyCity’s $700 million convention centre and hotel project in central Auckland has contracted Fletcher Building for $477 million of the work, expected to begin by December. […] Despite controversy over the project, there was negligible political response to yesterday’s announcement, other than Minister of Economic Development Steven Joyce talking up the importance of the “national facility”.
Read more

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20 July 2017
STATEMENT FROM FLETCHER (via interest.co.nz)

– Fletcher Building announces expected earnings for the financial year ended 30 June 2017
– Operating earnings expected to be approximately $525 million, down from previous guidance of $610-$650 million
– Likely impairment up to $220 million relating to Iplex Australia and Tradelink business units
– Departure of Chief Executive Officer (CEO) and Managing Director Mark Adamson
– Appointment of Francisco Irazusta as interim CEO, effective Monday 24 July 2017

Fletcher Building has today announced it expects operating earnings before interest, tax and significant items (‘EBIT’) to be approximately $525 million for the year ended 30 June 2017.

Trading in the Building Products, International, Distribution and Residential and Land Development divisions, as well as three of the four business units in the Construction division (Infrastructure, Higgins and South Pacific), are in line with the Company’s expectations, previously provided at the time of the interim results on 22 February 2017.

However, as work on major projects in the Building + Interiors (‘B+I’) business unit has progressed, it has become apparent that losses in B+I will exceed those previously estimated. The deterioration is due to:
– A major project subject to previous write-downs, which has required an increase in project resourcing and therefore cost as it nears completion;
– A second major project where construction timelines and the likely completion date have been extended;
– Reduced profit expectations on a number of smaller projects in the remainder of the B+I portfolio.

Fletcher Building Chairman Sir Ralph Norris said: “It is very disappointing to see further losses being reported in our B+I business, particularly when the vast majority of the remaining Fletcher Building business units have performed so well during the year. I know our people in B+I are working incredibly hard to deliver a number of projects for our clients and I would like to acknowledge their efforts.”

In addition, consistent with standard practice at the end of each financial period, Fletcher Building has undertaken a review of the Balance Sheet carrying values of its business units. This review has indicated that the value of two business units, Iplex Australia and Tradelink, are likely to be subject to an impairment charge of approximately $220 million, when the company finalises its financial statements in August. An impairment of this nature would be reported below the EBIT line and have no impact on cash earnings.

An impairment charge of $220 million would represent approximately 3% of the group’s total assets as at 30 June 2017. The amount of asset impairment is indicative at this stage and is subject to finalisation of the year-end audit.

“With regards to the impairment of Iplex Australia and Tradelink, while we do see progress in these business units the Board felt it was prudent to recognise that the near to medium term estimates of profitability in each business are not aligned with current carrying values,” continued Sir Ralph.

The Board also announced the departure of Chief Executive Officer (CEO) and Managing Director, Mark Adamson.

Sir Ralph Norris said: “The Board believes it is the right time for Mark to leave the Company, to allow a new CEO to lead Fletcher Building through this period and into the next phase of its strategy. The Board would like to thank Mark for his work and we wish him the best in his future endeavours.”

Mark Adamson said: “I am disappointed to finish my tenure on the back of a challenging result in the Construction Division, however I am proud of what has been achieved over the last five years – most notably the turnaround of Formica, double-digit earnings growth in Distribution, our acquisition of Higgins and the significant progress in our residential development division.”

The Board has appointed Francisco Irazusta interim CEO effective Monday 24 July 2017.

“Francisco joined Fletcher Building in March 2015 and is currently Chief Executive of the International Division. Prior to joining the Company he held senior leadership positions with a number of building products companies in North America and Europe and will provide stable leadership for the business during this transition, with the support of myself and the Board,” finished Sir Ralph.

The Board will now commence a process to appoint a new CEO.

[ends]

Fletcher Building http://www.fletcherbuilding.com/

Christchurch Justice and Emergency Services Precinct

Other news:
NZH: Fletcher CEO sorry for inflammatory internal email: Chairman
Stuff: SkyCity confirms delay to international convention centre as Fletchers feels ‘pain’
NZH: CEO departs amid Fletcher’s $415m fortune turnaround, stock drops to 16-month low

Posted by Elizabeth Kerr

This post is offered in the public interest.

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Delta | Infinity | CCC staff collude to defeat Yaldhurst residents (again)

Yaldhurst Subdivision (former Noble Subdivision)

S T A T E ● O F ● P L A Y

Christchurch City Council is failing to ensure compliance with the subdivision consent and is then assisting the developer Noble/Delta – Infinity/Delta, to screw the Yaldhurst residents.

[click to enlarge]

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About five of the affected Yaldhurst residents gave deputations to the full meeting of the Christchurch City Council on Thursday, 6 July 2017.

Prior to the meeting, the Infinity Joint Venture of which Delta is a majority partner (with its $13m gift investment from Dunedin City Council) had convinced CCC staff to sway Christchurch City councillors to vote for the dedication of private roads as opposed to vesting ownership in the Council. This in the attempt to first defeat land covenants the affected residents have over the property registered in 2003 to protect their inclusion in any subdivision. However, Land Information New Zealand (LINZ) cannot accept roads vesting in ownership with the Council when there are any encumbrances on the land – such as the residents’ covenants.

For the residents, Colin Stokes, at the council meeting, distributed to councillors a review of what CCC staff have done over the years.

Of course, as the facts flow they continue to entwine around Delta.

The residents are fighting to protect and enforce their rights in the subdivision consent; and to halt Delta and their Southern associates’ onslaught against them.

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Received from Colin Stokes (Yaldhurst resident and caveator)
Wed, 12 Jul 2017 at 9:16 a.m.

Thanks for your ongoing support Elizabeth

Chris Hutching’s piece (The Press 10.7.17) is weak and void of facts that present our case.

● We have Land Covenants registered over all the land in 2003 to protect our inclusion in any subdivision – our specific Access Lot road has to be formed and vested to Christchurch City Council standards with CCC as a term of extinguishment of the covenants.
● The encumbrance on the land prevent vesting of roads as LINZ won’t allow roads to vest with the council with them on.
● Infinity/Delta behind closed doors with CCC staff came up with a scheme to dedicate the roads under old rules (not compliant with the RMA and the subdivision consent) so as to circumvent our covenant protection.
● The real story is that CCC is breaking rules and NOT requiring compliance with the subdivision consent so as to cheat the residents of their protection and their interests protected by that protection so as CCC and the developer can cut them out of the subdivision.
● CCC and the developer Noble/Delta – Infinity/Delta have taken conditions out of the consent, varied the consent, and permitted non-complying undersized infrastructure that makes our part of the subdivision impossible – specifically stormwater pipes and basins required on the lower lying developers’ land which is where the consent (and physical topography and site layout) requires our stormwater to go.
● CCC failing to enforce the conditions of the consent as the law requires means our Access Lot road cannot be formed, meaning we can not subdivide.
● Delta with the misuse of mortgagee powers passed the property to itself, or at least part of the property ($13.4m of an $18.35m “sale” = 73% of which $12.5m was left in the property in passing it to Infinity in the orchestrated “sale”).

[ends]

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Prepared Summary and Review with subdivision plans as tabled at Christchurch City Council’s meeting (6 July), to assist understanding:

███ D 2017 07 04 Summary and Review of Circumvention of Covenants for Councillors Yaldhurst (16 pages)

1 Plan RMA92009135

2 Plan RMA92009135 hlite

The coloured plan shows the residents’ Access Lot between green lines going from Yaldhurst Rd and then dog-legging east to west. What is inside the yellow border is what is within the Subdivision Consent (note there is an internal yellow small 2 sites that are NOT in the consent – and 3 other of the residents’ lots in common ownership on the NS leg are not included in the consent).

It is this east west leg of the Access Lot that requires widened roading to enable the Lots each side to be subdivided pursuant to:-
– 2002 Agreements for sale and purchase (and 2008 further agreement)
– 2003 Registered Land Covenant Protection [see Summary and Review, page 1 para 2 for terms of extinguishment]
– 2009 Subdivision Consent (Condition 5 and stormwater Conditions for it 9.) [see Summary and Review, page 5 para 12]

The problem is
– the Security Sharing Joint Venture (Noble/Delta/Gold Band) SSJV designed and constructed their part of the subdivision such that it made the East West Access Lot owners (residents) parts of the subdivision impossible AND that the Council permitted this.

– Undersized stormwater infrastructure was corruptly installed without consent to NOT include the residents’ subdivisions (all the while falsely assuring residents it did).

– The stormwater is required to be on land the residents transferred to the developer in return for this stormwater and other provisions. It is required to be there for numerous reasons including physical and legal reasons;
* Residents transferred the land in return for this provision
* 2003 Land Covenants protect this land for that provision (required for the Access Lot Road to be formed and vested)
* 2009 The Subdivision Consent requires it to be on the developers’ land (Condition 9.5 which “disappeared”) [see Summary and Review, page 5 para 12 and page 10 email 16 Feb 2010]
* Residents that are part of that subdivision consent have the legal rights to the stormwater (s134 RMA) – the Council is refusing to enforce the conditions of the consent; and permitted the developer to NOT comply with the conditions.
* Land topography and layout physically requires it to go there. The land slopes High NWest to SEast Low

– Delta went ahead and constructed the infrastructure without legal consent – [see Summary and Review, page 10 email 22 Aug 2012]
* This is akin to a builder building a house without consent.
* Council failed to issue an abatement notice for works being complete without consent, and to non-complying standards.

For all the Council staff failings, and the consent holders and JV partners’ failings and corruption of making the residents parts of the subdivision impossible:-
– Delta/Infinity and Council staff are recommending to the Elected Council to vote to circumvent the residents’ Land Covenants so:-
* the residents roading and subdivisions will no longer be protected and will be impossible;
* the JV Infinity/Delta will make more profit by not having to comply with the conditions of the consent that requires the residents’ roading and inclusion (as above)
* Council staff “mistakes” and wrongdoing of permitting non-complying works and not enforcing the conditions of the consent (as required by law) will be covered up.

– Delta and DCC was the facilitator of transferring the property from the Delta/Gold Band/Noble Joint Venture to the Delta/Infinity Joint Venture.
– Delta (illegally) owned 67.5% of the 1st mortgage and controlled Gold Band through their Security Sharing JV.
– Delta’s assurances it had nothing to do with the mortgagee sale is a lie.
– Delta refused to allow Gold Band to accept offers to redeem the 1st mortgage (illegal under s102 & s103 Property Law Act).
– DCC refused to allow redemption of the 1st mortgage.
– DCC (and Delta) refused to accept assignment of the 1st mortgage when Colin Stokes and another (as parties with interests in the land entitled to redeem) offered it to them
* had they done, Delta could have registered about an additional $16m in agreements to mortgage they were sitting on
* all that was required in return was “our little road” which is a LEGAL REQUIREMENT of the subdivision consent in any event.

[ends]

As reported by The Press, the eight-year dispute involving the stalled Yaldhurst subdivision has now gone to mediation between the property owners and the developers.
The dispute has been aired in several High Court cases between the private landowners and the developers, which are continuing.

Related Post and Comments:
11.7.17 Delta has deep fingers into 8-year subdivision dispute at Yaldhurst

█ For more, enter the terms *delta*, *aurora*, *grady*, *luggate*, *jacks point*, *dchl*, *auditor-general*, *noble*, *yaldhurst* or *epic fraud* in the search box at right.

Posted by Elizabeth Kerr

This post is offered in the public interest.

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DCC makes no direct return from rugby or events held at Fubar Stadium

L A S T ● M O N T H ’S ● P R O N O U N C E M E N T ● F R O M ● A B O V E

ODT 20.6.17 (page 6)

ODT 26.6.17 (page 8)

Trevor Lloyd: Defeat of British rugby by the All Blacks in 1905 [pinimg.com]

Posted by Elizabeth Kerr

This post is offered in the public interest.

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Asbestos contamination at Dunedin Railway Station

[womentravelnz.com]

There’s a new tenancy at the Dunedin Railway Station.

People working on the project had been told the whole underfloor area was safe to enter; that there was plastic down.

Turns out the plastic cover ran short, and a number of site workers had crawled across bare dirt, kicking up a lot of dust as they went – it was found the area had been contaminated with asbestos.

We understand workmen from several companies have been affected.

The Dunedin Railway Station is a council owned property. Affected sitemen have since had their names added to the WorkSafe Asbestos Exposure Database; and Health and Safety meetings have been called to review safety drills and gear provision.

It appears a few people have slipped up along the ‘food chain’ of managerial responsibility for the workers, starting with DCC management (the building owner).

We hear DCC is now paying for workers to be educated on what protection gear they must wear on exposed asbestos worksites.

Related Post and Comments:
19.6.16 Thoughts on ODT Insight : Chris Morris investigates Asbestos plague

Posted by Elizabeth Kerr

This post is offered in the public interest.

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“Fat” gawky Hotel and Apartment building : Questionable design even with 4 floors lopped off

What environmental considerations, Mr Page?

More than minor.

[Everyone will remember the learned Mr Page from the Betterways hotel and apartment building application for 41 Wharf St at the waterfront, not so long ago.]

Mr Bryce (independent planner): …a “key concern” for submitters…the building would block sun from reaching the Regent Theatre and surrounds from 3pm at winter solstice. “At this time of year, the proposal will effectively remove all remaining access to sunlight received over [the] southern end of the western side of the Octagon.” (ODT)

Mr Page (the developer’s ‘Brief’): The “potential shading effect” was acknowledged, but Mr Page was confident the hotel’s benefits “will far outweigh” those concerns. (ODT)

Mr Page, again : The hotel’s “tall, slender built form” minimised the impact on those living closest to the hotel project site… (ODT)

Good heavens.

Source: Application documents

At Facebook:

### ODT Online Tue, 11 July 2017
Hotel developer still confident
By Chris Morris
Dunedin’s latest five-star hotel bid will “not be viable” if the developer is forced to reduce the building’s height, it has been claimed. But the man behind the project, Tekapo businessman Anthony Tosswill, remains confident the hearings panel set to decide the project’s fate can yet be swayed by the hotel’s benefits. The comments came from Phil Page, the lawyer acting for Mr Tosswill, days after the public release of an independent planner’s report running the ruler over the hotel proposal.
The report by Nigel Bryce concluded consent be declined unless Mr Tosswill agreed to a “substantial reduction” in the building’s height, by four storeys, to bring it down from 60m to 45.5m.
Read more

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Resource Consent Application LUC 2017-48 and SUB 2017-26, 143 – 193 Moray Place, Dunedin (Proposed Hotel)

The hearing will be held on Mon 31 Jul, Tue 1 Aug, Wed 2 Aug, Thu 3 Aug and Fri 4 Aug 2017 in the Edinburgh Room, Municipal Chambers (off the Octagon). The hearing will commence at 9.30 am each day.

Consultant Planner’s Section 42a Report (PDF, 4.3 MB)

[excerpt]

SUMMARY OF RECOMMENDATION
[5] For the reasons set out in paragraphs 72 to 334 below, I consider that the Proposal in its current form, will not promote the sustainable management of natural and physical resources in accordance with Part 2 of the Resource Management Act 1991 (RMA or the Act).
[6] The Development promotes a contemporary design, which is considered acceptable within this setting and articulates sufficient design interest and modulation through the facades and its pinwheel like form expressed in the tower component of the building. The building’s design incorporates a base building or podium, which allows the structure to have an active street frontage to Moray Place and Filleul Street, which is considered a positive design response.
[7] The Development will be ‘juxtaposed’ against a backdrop of the heritage buildings located to the east of Moray Place, including the Town Hall and St Paul’s Cathedral when viewed from the west and St Paul’s Cathedral and the Municipal Chambers when viewed from the south (including from the Octagon).
[8] The building’s overall height is considered to generate an over-dominance on properties to the north and west of the Site, and will have more than minor adverse effects on the amenity values of residential properties to the west of the Site. This is largely due to the significant change in scale introduced by the Development and the lower scale built environment that currently exists to the west and north of the development site, comprising predominantly two to three storeys in height.
[9] The Development will adversely impact upon the townscape values of the TH02 Octagon townscape precinct under the Operative Dunedin City District Plan (Operative Plan), including loss of sunlight penetration into the Octagon during the Winter Solstice and will adversely impact upon the setting and pre-eminence of existing heritage buildings such as the St Paul’s Cathedral and the Municipal Chambers building when viewed from the Octagon.
[10] The Development is considered to result in more than minor visual amenity and shading effects on Kingsgate Hotel to the south of the Site. The Kingsgate Hotel will experience prolonged and more sustained loss of light over a wider part of the property and associated buildings over the critical morning period during the Equinox and Winter Solstice periods (or collectively over ¾ of the year). This conclusion has been reached having regard to the potential for the Site to be developed up to a maximum height of 11 metres with a building erected against all boundaries (the ‘controlled activity building outline’).
[11] For the scale of the building to be mitigated to an acceptable level, and to maintain and enhance the amenity values of the City Centre and wider environs, Council’s urban design consultant, Mr [Garth] Falconer recommends reducing the proposed building height by four levels to bring the total height down to nine storeys (Level 13, +157,500 (datum level) on Drawing Section AA). This reduction would provide for a maximum height of 45.6 metres from existing ground level, or a maximum height breach of 34.4 metres (including the lift shaft). This mitigation response would not remove any of the 210 visitor accommodation rooms (hotel rooms), and would maintain supporting facilities including licensed premises, retail, conference, meeting facilities and on-site amenities, parking, and servicing areas. I note, for completeness, that the Applicant is not currently proposing to reduce the height of the Development.
[12] In its current form, it is my recommendation that the proposal should be declined.

More about Garth Falconer, DCC’s consulting urban designer:
LinkedIn profile: https://nz.linkedin.com/in/garth-falconer-a0699bb3
Owner and Director, Reset Urban Design Ltd: http://reseturban.co.nz/

Take a glimpse of the ‘urban form’ at Takapuna, North Shore Auckland (his home turf), to know Mr Falconer is likely missing any handle on building height for a heritage city like Dunedin.

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Agenda and all documents including Submissions at:

http://www.dunedin.govt.nz/council-online/notified-resource-consents/notified-applications-pending/luc-2017-48-and-sub-2017-26

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At Facebook [see comments]:

### ODT Online Sat, 8 Jul 2017
Reject hotel bid: planner
By Chris Morris
A planner has recommended rejecting Dunedin’s latest five-star hotel bid, unless the developer agrees to a “substantial reduction” in the building’s height. The recommendation to decline consent came in a report by independent consultant Nigel Bryce, made public yesterday, ahead of the public hearing beginning on July 31. In his report to the panel of independent commissioners, Mr Bryce said the hotel development would “visually dominate” its surroundings, including the town hall, St Paul’s Cathedral and the Municipal Chambers. It would be the tallest building in the central city and would cast a shadow over the Octagon, as well as the nearby Kingsgate Hotel, during winter. Together with other impacts, the development was considered to be “non-complying” under the city’s district plan rules. It would only be acceptable if the building was reduced by four storeys, lowering its overall height from 60m to 45.6m, which was still well above the existing 11m height limit for the site, his report said.
Read more

[initial coverage]
7.7.17 ODT: Decline hotel consent: report

### ODT Online Wed, 28 Jun 2017
Two from North Island on hotel hearings panel
By Chris Morris
The panel to decide the fate of Dunedin’s latest five-star hotel bid features one familiar face and two from the North Island. Tekapo businessman Anthony Tosswill’s bid to build a 17-storey hotel and apartment tower in Dunedin would be considered over five days, beginning on July 31, it was confirmed yesterday. […] The panel of three would be headed by chairman Andrew Noone, now an Otago regional councillor, acting in his role as an independent commissioner. […] Alongside him will be fellow independent commissioners Stephen Daysh, of Napier, and Gavin Lister, of Auckland.
Read more

Related Posts and Comments:
● 14.5.17 RNZ reports July hearings for proposed hotel apartment building [comments by Mr Tosswill]
● 4.5.17 Submissions close 10 May : Proposed 17-storey, est. 62.5 metres-high Moray Place hotel/apartment building
● 7.4.17 Proposed hotel *height and design* —the very least of it #sellingoursouls
● 5.6.17 Application lodged for FIASCO Hotel by Tosswill #DunedinWrecks
● 18.12.16 DCC set to take away CBD car parks without Economic Impact research
● 15.10.16 Battle of the hotels : DCC meat in the sandwich (unedifying)
● 5.10.16 Dunedin bauble #votecatcher
● 4.10.16 The Demon Duck freak show of partial ‘Civic’ information! Before voting closes! #Dunedin
11.1.16 Un hôtel. Dunedin.
19.8.15 Hotels ? Business ? [DCC lost +++152 fleet vehicles] —Cull in charge of building chicken coops, why ?
1.4.14 HOTEL Town Hall… Another investment group, Daaave’s pals from the communist state?
25.3.14 Hotel We LIKE: Distinction Dunedin Hotel at former CPO

Posted by Elizabeth Kerr

This post is offered in the public interest.

Source: Application documents

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Emirates Team New Zealand must WIN #AmericasCup2017

[via catsailingnews.com – click to enlarge]

At Facebook:

35th America’s Cup match
Race 7: Emirates Team New Zealand beat Oracle Team USA by 12 secs
Race 8: Emirates Team New Zealand beat Oracle Team USA
Team New Zealand lead the first-to-seven series 6-1

At Twitter:

Posted by Elizabeth Kerr

This post is offered inthe public interest.

*Image: 24/06/2017 – Bermuda (BDA) – 35th America’s Cup 2017 – 35th America’s Cup Match Presented by Louis Vuitton – © ACEA 2017 / Photo Sander van der Borch

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Dunedin Midwinter Carnival 2017

### ODT Online Sat, 24 Jun 2017
Nocturnal creatures shine at carnival
By Vaughan Elder
The wild things came out to play in the Octagon tonight as luminous nocturnal creatures invaded for the Dunedin Midwinter Carnival. Thousands of people packed the Octagon and Stuart St for the annual event, which this year had the theme of Nocturnal Nature.
Read more

█ Photos via Dunedin News at Facebook [closed group]

█ Video via Dunedin News at Facebook

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Meanwhile the true fauna of Bath Street looks on….

Post and images by Elizabeth Kerr

This post is offered in the public interest.

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