Tag Archives: Asset sales

Battle of the hotels : DCC meat in the sandwich (unedifying)

proposed-hotel-via-facebook-odt-filesCr Hilary Calvert emailed the following questions to senior council officers on Sunday, 16 September 2016 at 1:20 p.m., with regards to the DCC-owned parking area in Filleul St, proposed as the site for a new privately developed hotel.

[Staff names have been removed. -Eds]

Enterprise Dunedin provides part reply on Friday, 7 October 2016, at 5:03 p.m.

Q: How many car parks will be lost if this project goes ahead, and what would be the loss of revenue to the DCC?

A: The number of car parks that may be lost cannot be accurately determined at this point in time. The next stage in the project following the due diligence period will provide that level of detailed information.

Q: What development contribution and/or rates relief was provided on the Chief Post Office site, in total, for that site?

A: Enterprise Dunedin does not have this information. I will forward the request to Finance for them to respond.

Q: How many first class beds are we short of in Dunedin according to your information? Does the industry agree with your assessment of what we are short of?

A: In the 2012 evidence for the Resource Consent Application for Betterways Ltd, Stephen Hamilton’s (Horwath Asia Pacific Ltd) ‘Market Gap Report’ indicated “the need for an internationally branded 5 star hotel and another 4 star plus hotel for Dunedin to remain competitive with Tier 1 and Top Tier 2 destinations is 150-250 rooms”.

No reply has been received, we understand, for this fourth question which was directed to another senior council officer:

Q: What is the number of parks we will be losing as a result of … likely central city changes such as bus hub and cycleways, in the vicinity of the central city within the range of those who would park and walk to their work close to the Filleul St site (maybe Moray Place south, Princes St and George St to the outer end of the Golden Block, seaward to the far side of Cumberland)?

dcc-webmap-filleul-st-parking-area-shaded-1DCC Webmap – Filleul St council-owned parking area (shaded)

Furthermore, after noting public concerns about the loss of car parks, an OIA request by Hilary Calvert was submitted to Sandy Graham, Group Manager Corporate Services, on Friday, 14 October 2016 at 10:28 a.m.

Re: OIA Parks new hotel [Filleul Street]
Q: Would it be possible to get information from [City Property] about how many parks there are on this property and any affected by the sale i.e. any contiguous property on which DCC has parks.

Reply is pending.

****

BELATED NEWS—
Mr Tosswill (NZ Horizon Hospitality Group Ltd – incorporated 20 Jan 2016) has some competition, as does DCC on what it knows or chooses not to reveal……

There’s only ONE WINNER, it’s not likely to be DCC.
Market research shows Mrs Hagaman is quite correct.

“Ratepayers need to know the region’s five-star market is very small.”
–Lani Hagaman, Scenic Circle

### ODT Online Sat, 15 Oct 2016
Five-star hotel planned; site, height unclear
By Dene Mackenzie
The Scenic Circle Group is planning a five-star hotel in Dunedin but the company will not reveal where it will build the $34 million 120-room hotel, or its height. The hotel would have restaurants, bars, conference rooms and a luxury day spa. The hotel group, owned by Earl and Lani Hagaman, has owned and operated the 178-room, 4.5-star Dunedin Scenic Hotel Southern Cross since 1984 and, in 2003, built the 121-room four-star Scenic Hotel Dunedin City. […] Mrs Hagaman yesterday  launched stinging criticism of the council and its involvement with Mr Tosswill. She said she advised the council about Scenic’s plans for a five-star property more than three months ago and was surprised the council entered into an exclusive deal with another developer.
Read more

dcc-webmap-scenic-circle-group-princes-high-broadway-rattray-sts-shaded-1DCC Webmap – Scenic Circle / Hagaman properties (shaded), The Exchange

Related Posts and Comments:
● 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?

Posted by Elizabeth Kerr

This post is offered in the public interest.

24 Comments

Filed under Architecture, Business, Construction, DCC, Democracy, Design, District Plan, Dunedin, Economics, Education, Enterprise Dunedin, Finance, Geography, Heritage, Hotel, Infrastructure, Media, Name, New Zealand, OAG, Ombudsman, People, Pet projects, Politics, Project management, Property, Proposed 2GP, Public interest, Resource management, Site, Tourism, Town planning, Transportation, Urban design, What stadium

Dunedin bauble #votecatcher

W H I C H ● F O R ● Y O U R ● C O M F O R T

odt-4-10-16-hotel-proposal-p1-detail-by-ken-t-mica-2400w-column-heater-w-digital-display-by-kent-nz-1a

Left by Ken T (via ODT), right by Kent (makers of the retail appliance)

With thanks to the local resident for his comment in Otago Daily Times.

WE VERY MUCH LIKE the Kent Mica 2400W column heater with digital display and happily endorse the smart contemporary design and total product.

Benson-Pope has been campaigning for re-election to Council on a platform that includes No Asset Sales. Um, “Point of Order” : The council-owned Filleul St car park is For Sale. A contradiction, perhaps, to now support the hotel development on this much used site ?

From a voter/witness who attended the Candidates meeting at Waikouaiti on the evening of 13 September: “David Benson-Pope was probably the worst; used maybe two of his three minutes; said he was opposed to asset sales and sat down.” Link

[click to enlarge]DCC Webmap - Upper Octagon Moray Place Filleul Street (star)DCC Webmap – Filleul St car park site starred

ODT articles:
5.10.16 Positive hotel response, but design concerns
5.10.16 Drilling set to start 
4.10.16 Luxury hotel a step closer (with graphic)

Related Posts and Comments:
● 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?

Posted by Elizabeth Kerr

Election Year. This post is offered in the public interest.

*Image framing and pairing by whatifdunedin

*Credit: Mica 2400W column heater with digital display by Kent [kent.co.nz]

17 Comments

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Delta #EpicFail : Strategic Reasons & Outrageous Logic

Election Year : The following opinion is offered in the public interest. -Eds

Delta - AuthorUphillBattle - The Books [blog.smashwords.com]

Received from Christchurch Driver [CD]
Tue, 19 Apr 2016 at 10:48 p.m.

Readers, tonight’s exposition is to examine the Dunedin City Council (DCC) worldview that does not contemplate a sale of Delta at less than $45M. Your correspondent says that will never happen on any rational economic basis, so the next best thing is to pretend that it would not be in the ratepayers’ best interests to sell at all, seemingly at any price.

However, annoyingly, logic and reasons must intrude at some point, and in the recent report on DCHL asset values, the DCC have a crack at pushing the Delta water uphill.

Agenda – Council – 11/04/2016 (PDF, 1.6 MB)
Item 22 Dunedin City Council Investments and Returns (pp 109 – 123)

Tonight, readers, we shall dwell on and allow the TWO big “strategic reasons”, the DCC propose to retain Delta, to stand in splendid isolation, while readers allow the cool chill of logic to bring these clouds of hot air back to reality.

We shall also overlay some markers over Delta’s financial figures that give support to your correspondent’s contention that Delta is at risk. (careful words needed here, readers !)

Safely camouflaged at para 55 (page 117), deep in the DCC report, the following statements appear : “If Delta were to be sold by the DCC, one likely outcome…. [it could be] purchased by a competing company in the same field. One consideration…. is the potential ‘head office’ job loss to Dunedin if Delta were to be sold to an existing company which is not locally owned.”

Stop right there, readers. The DCC say the first, most important consideration in retaining Delta is to retain the Delta ‘head office jobs’ in Dunedin. At one level we can take this to mean that the DCC are very fearful that the current occupiers of the Delta head office jobs in question would not find similar work in Dunedin. Your correspondent thinks that is a very well-founded fear. But the DCC head of economic development tells us the city is growing and it is hard to attract executive staff to the city…. it is a taxing puzzle why the authors of the report ignore their own staff…. At the next level, your correspondent is vexed at the concern shown by the DCC for the six figure inhabitants of the Delta Head Office suite. (Note, there are 70 people earning in excess of $100,000 at Delta, your correspondent guesses that the Head Office inhabitants occupy the highest echelons of those salaries). This brings a whole new meaning to the (draft) Statement of Intent requirement to be a “socially responsible …. corporate citizen”. At a higher level again, the DCC appear to say that the welfare and future of the head office positions rank ahead of the core task of providing returns to the ratepayers.

Readers, remember that DCC provide these reasons as reasons not to sell Delta even if someone paid the massive premium of 300-400% over the $15.804M shareholders equity (which is about to suffer a severe Noble induced virus).

Your correspondent is very sure these revolutionary themes of Soviet Style central planning and corporate welfarism were not intended in the Delta ‘Statement of Intent’ which is meant regulate how the company is run.

Next up as the DCC apologia for retaining Delta is the statement, “the loss of Delta from the local contracting market, particularly if through acquisition from an existing contractor, would remove an element of competition from an already limited local market”.

This is illogical. Let us count the ways:

1. If competition is “limited” then margins will be high, and demand for skilled staff intense, so any logical purchaser would leave the Delta structure alone to continue its high margin work…. but of course, if there is limited competition and Delta are not making good profits, then there is a problem…. and Delta should be sold to an entity that can generate good profits in a limited market.

2. It can be safely assumed that Delta’s local competitors Fulton Hogan, Downer, SouthRoads, Whitestone, Asplundh, Waste Management, and any of the local power contracting companies are not stupid and they would have no interest in paying the DCC $45-60M for $15.804M of equity (on a good day). If Delta expired, the limited competition just got less, and paydays all round for all left standing. Your correspondent says then that any purchaser is likely to be someone who does not have a presence in the market, and sees potential for profit in this market, allegedly with limited competition. If that were true they would leave Delta as it was, maybe even with some of its precious head office jobs, to continue their (merry and profitable ?) way. (For the time being at least).

3. The bottom line is your correspondent posits that Delta will never be sold in its current form, because its competitors know, even if DCC Treasury does not, that Banks have certain standards for lending money to companies, and an important one is the debt to equity ratio. Delta has $26.9M of debt and $15.804M of equity. That is a debt : equity ratio of 183 % which this correspondent says is far too high for a contracting company. A debt : equity of 100 % or less is usual in this sector. Another is the Liquidity (Quick) Ratio which is Current Assets / Current Liabilities. Contractors should have a minimum of 1.35 and many accountants would say 2. (What would Mr McLauchlan say ….?). Delta has $17.5M of current liabilities and just $220,000 of cash in the bank. This is one seriously undercapitalised contracting company.

Delta will no doubt say their quick ratio is fine because the accounts show $25.244M in receivables, but this includes the very non-current and very illiquid Noble debt of $13.2M. They do have $2.84M of Work In Progress (WIP) which is included under inventories. They then have proper current assets of $0.22M cash, $2.84M WIP, and $12.2M Receivables, ($25.24-13.2M) for a total of $15.08M and a quick ratio of 0.88. The bottom line is : even putting aside the elephantine $26.9M in debt, Delta have serious cash flow issues with a quick ratio of less than 1, and if they have a further problem contract, or even just a delay of a month or two getting paid on a larger contract, they are not just on a cashflow knife edge, but in serious trouble. Delta has basically no cash reserves as at June 2015. Of course, Mr Cameron did not dwell on that factoid in his report….

Readers, the quality of the excuses made in support of retaining Delta are of the same quality as the prediction of its value at $45-60M.

[ends]

█ For more, enter the term *delta* in the search box at right.

Posted by Elizabeth Kerr

1. factoid

*Image: blog.smashwords.com – AuthorUphillBattle, tweaked by whatifdunedin

5 Comments

Filed under Aurora Energy, Business, DCC, DCHL, DCTL, Delta, Democracy, Dunedin, Economics, Finance, Infrastructure, Name, New Zealand, OAG, People, Politics, Project management, Property, Public interest

DCC LTAP 2016/17 budget discussion #ultrahelpfulhints

ODT 19.1.16 (page 6)

ODT 19.1.16 To the point McCutcheon p6 FrameScrollCornerJPRfinished red

Comment at ODT Online:

Still on about ‘rising ground water’
Submitted by flatout on Thu, 21/01/2016 – 8:05am.

When will you…Dave…and the council admit it was a lack of mainenance that caused the flooding in Dunedin? Stop blaming climate change and rising ground water. Stop talking about high cost plans of moving South Dunedin and buying properties. Stop your endless council staff meetings about the issue of ‘what to do with South Dunedin’. Do maintenance on the stormwater. Do invest in South Dunedin to keep it a place to live and work in. All you need to do is clear drains and stormwater system that has coped with worse floods in the past…1968 for example.

REMOVE THE IRRITANT
Dave framed [FrameScrollCornerJPRfinished] 2

Posted by Elizabeth Kerr

62 Comments

Filed under Business, Cycle network, DCC, Delta, Democracy, Dunedin, DVML, Economics, Enterprise Dunedin, Infrastructure, Media, Name, New Zealand, OAG, People, Pet projects, Politics, Project management, Property, Proposed 2GP, Resource management, Tourism, Town planning, Transportation, Urban design, What stadium

DCC Draft Annual Plan 2014/15 Submissions due by 15 April

### ODT Online Fri, 11 Apr 2014
Draft budget feedback pretty good: council
By Chris Morris
The Dunedin City Council says feedback on its draft budget has been “pretty good” despite some disappointing turnouts at public meetings in recent weeks. The council concluded a series of eight public meetings and drop-in sessions with a discussion of cycleway and road-widening work on Otago Peninsula at the Edgar Centre on Tuesday night.
Public submissions on the council’s 2014-15 draft annual plan were “flooding in now” and had reached 427 by late yesterday, council corporate planner Jane Nevill said. That was well above the 262 submissions received by the council on its 2013-14 draft budget.
Read more

****

DRAFT DCC ANNUAL PLAN 2014/2015
The draft annual plan sets out the Council’s proposed annual budgets and performance measures for 2014/15 and updates the information for the 2014/15 year that in contained in the Council’s ten year plan or Long Term Plan (LTP) which was put in place last year.
Please tell DCC whether you agree or disagree with spending priorities for 2014/15 outlined in the draft plan by making a submission.
The consultation period is your opportunity to “Have Your Say” about what you want to see included in the Council’s plans.

Submissions close at 5pm, Tuesday 15 April 2014.
Timeframes and Meeting times

█ Read more (with downloads):
http://www.dunedin.govt.nz/your-council/draft-annual-plan-2014-2015

Related Posts and Comments:
30.3.14 Paul Pope on local body annual plans
20.1.14 DCC Draft Annual Plan 2014/15

Posted by Elizabeth Kerr

40 Comments

Filed under Business, DCC, Democracy, DVL, DVML, Economics, Media, Name, ORFU, People, Politics, Project management, Property, Site, Sport, Stadiums, Tourism, Town planning, University of Otago, Urban design, What stadium

Paul Pope on local body annual plans

Paul Pope DCC Annual Plan [paul-pope.co.nz]Is the Annual Plan like Christmas? Photo: Paul Pope

Received.
Thursday, 20 March 2014 3:17 p.m.

http://paul-pope.co.nz/2014/03/20/is-the-annual-plan-like-christmas/
I wrote this on my personal political blog partly for my own amusement, you might find parts of it amusing also, though it does have a serious message regarding participation and scrutiny of the local government annual planning process. I’m trying to write more about issues in our area.
Regards

Paul Pope
Deputy Chair Otago Peninsula Community Board

Read Paul’s personal blog about life and issues on the Community Board at www.paul-pope.co.nz

****

DRAFT DCC ANNUAL PLAN 2014/2015
The draft annual plan sets out the Council’s proposed annual budgets and performance measures for 2014/15 and updates the information for the 2014/15 year that in contained in the Council’s ten year plan or Long Term Plan (LTP) which was put in place last year.
Please tell DCC whether you agree or disagree with spending priorities for 2014/15 outlined in the draft plan by making a submission.
The consultation period is your opportunity to “Have Your Say” about what you want to see included in the Council’s plans.

Submissions close at 5pm, Tuesday 15 April 2014.
Timeframes and Meeting times

Read more (downloads):
http://www.dunedin.govt.nz/your-council/draft-annual-plan-2014-2015

Related Posts and Comments:
20.1.14 DCC Draft Annual Plan 2014/15

For more, enter the terms *draft annual plan*, *cull*, *cycle*, *dvml*, *hotel*, *stadium*, or *annual plan* in the search box at right.

Posted by Elizabeth Kerr

12 Comments

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DCC Annual Plan 2013/14

DCC IS PULLING THE WOOL OVER YOUR EYES, DUNEDIN

### ODT Online Tue, 25 Jun 2013
Rates rise of 4% adopted; staff efforts praised
By Chris Morris
There were words of praise, but also of caution, as the Dunedin City Council yesterday locked in a 4% rates rise for the coming financial year. Councillors at yesterday’s full council meeting voted to adopt the 2013-14 annual plan, and the 4% rates rise, after months of discussion, debate and public consultation. The changes would come into force on July 1, but prompted little further debate yesterday, as councillors instead praised chief executive Paul Orders and his staff for their efforts.

Confirmation of the budget meant a $400,000-a-year events attraction fund for Dunedin Venues Management Ltd, the company running Forsyth Barr Stadium, and other budget proposals were confirmed.

Finance, strategy and development committee chairman Cr Syd Brown said the increase included headroom within the budget. That had allowed debt repayments to be accelerated, saving the council millions in interest payments, while keeping the rates increase within the goal of no more than 4%. Without the debt repayments, the increase would have been closer to 2%, Cr Brown said. ”I think that’s a sterling effort by the chief executive and his staff and I think the city’s been well served,” he said.
Read more

What is Cr Syd Brown really saying?

Is he saying the stadium debt, the council’s consolidated debt, the council’s lack of insurance for infrastructure, the seedy DCHL’s lack of traction, and DVL/DVML running significant losses requiring ‘unheard of’ ratepayer funds, is Okay and everything’s well in hand?

Or is he snide, skipping out of council before the engulfing mudslide hits, the one he’s made with help from the Good Old Boys.

Nothing like an old fox, or an old fool.
Syd Brown’s personal fortunes have been tidily aided by his position on council for the implementation of Taieri plan changes, council spending on ‘localised’ drainage, roading systems, and more. Then there are the persistent rumours about connections to pokie trusts and big brothers in racing and rugby. It’s not a clean slate.

Can you believe anything Syd Brown has to say about your council’s financial position? DCHL will soon report to councillors on the results of a review of its subsidiary companies. This will be interesting. Cr Richard Thomson opines that from the figures it appears the only way DCHL can meet its dividend payment forecasts will be by borrowing or selling assets, either of which would cause ”considerable concern”.

Report – Council – 24/06/2013 (PDF, 4.7 MB)
Dunedin City Council, 2013/14 Annual Plan for Adoption on 24 June 2013

Report – Council – 24/06/2013 (PDF, 72.5 KB)
Adoption of the Annual Plan 2013/14

Report – Council – 24/06/2013 (PDF, 703.3 KB)
Setting of Rates for 2013/14 Financial Year

Report – Council – 24/06/2013 (PDF, 26.6 KB)
Statements of Intent of DCHL Group Companies

Report – Council – 24/06/2013 (PDF, 306.1 KB)
Statement of Intent – Dunedin City Holdings Ltd

Report – Council – 24/06/2013 (PDF, 284.2 KB)
Statement of Intent – Aurora Energy Limited

Report – Council – 24/06/2013 (PDF, 251.0 KB)
Statement of Intent – Delta Utility Services Ltd

Report – Council – 24/06/2013 (PDF, 375.1 KB)
Statement of Intent – City Forests Ltd

Report – Council – 24/06/2013 (PDF, 351.4 KB)
Statement of Intent – Dunedin City Treasury Ltd

Report – Council – 24/06/2013 (PDF, 440.3 KB)
Statement of Intent – Taieri Gorge Railway Ltd

Report – Council – 24/06/2013 (PDF, 241.9 KB)
Statement of Intent – Dunedin International Airport Ltd

Report – Council – 24/06/2013 (PDF, 218.0 KB)
Statement of Intent – Dunedin Venues Limited

Report – Council – 24/06/2013 (PDF, 235.4 KB)
Statement of Intent – Dunedin Venues Management Ltd

Report – Council – 24/06/2013 (PDF, 728.7 KB)
Statement of Intent – Tourism Dunedin

Other reports tabled at yesterday’s meeting of the Dunedin City Council.

DCC homepage portrait nightmares 6.1.13 (screenshot)

Related Post and Comments:
22.1.13 DCC Draft Annual Plan 2013/14 – ‘Liability Cull’ and council chasten for election year

Posted by Elizabeth Kerr

40 Comments

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