Tag Archives: Debt financing

SUNK Stadium: TOO MUCH ratepayer money going west STOP

Garrick Tremain – 11 May 2012


The point is $224 million is not the TRUE COST. It is FAR HIGHER. Dunedin City Council must stop all OBFUSCATION. Open the books to a full independent forensic audit of the council and related entities NOW.

Meantime, close the stadium to stem the losses.

### ODT Online Fri, 11 May 2012
Budget blowout pushes stadium cost to $224m
By Chris Morris
The final cost of the Forsyth Barr Stadium has risen to $224 million, after independent auditors uncovered a budget blow-out of more than $8 million, it has been confirmed. The findings showed the stadium’s capital cost had risen by $8.4 million, from $198 million to $206.4 million. Interest accrued during the stadium’s entire construction period, as loans began to be drawn down, also hadn’t been included in costs.

The $8.4 million overspend meant costs exceeded budgets by 4.2%.

The PWC review did not seek to apportion blame, but findings had been passed to council chief executive Paul Orders, who told reporters he would study them “coolly and calmly”.
Read more

Posted by Elizabeth Kerr

79 Comments

Filed under Architecture, Business, Construction, CST, DCC, DCHL, DVL, DVML, Economics, Events, Hot air, Media, ORC, ORFU, People, Politics, Project management, Property, Site, Sport, Stadiums, STS, Town planning, Urban design

Dunedin City Council is buggered

### stuff.co.nz Last updated 01:00 02/09/2011
‘Marvel’ needed to pay for Dunedin stadium
By Wilma McCorkindale – DScene
Dunedin City councillors have been warned that not only is the city struggling to finance its brand new stadium, it may also not be able to afford to maintain the controversial venue. The report recommended any surplus cash flows generated by the DCC or its holding company, Dunedin City Holdings Ltd (DCHL), over the next 10 years, go to reducing stadium debt.

“That is mind-boggling,” Cr Lee Vandervis, a stadium opponent, said. “This is saying that any spare cash, anywhere, all goes to the stadium. That is every spare dollar that might show up in any budget in the DCC or DCHL over the next 10 years. There will not be one dollar for anything else.”

Another recommendation has the DCC pushing stadium debt from 20 years out to 40 years. “That adds an obscene $115 million in interest charges to the cost of the Stadium,” Vandervis said, “and the figures say we must push out to 40 years because it is no longer possible for DVL to repay the debt over 20 years.

Read more

Posted by Elizabeth Kerr

6 Comments

Filed under Stadiums

DCC Finance, Strategy and Development Committee

Meeting – Monday 5 September 2011, 1.00 PM
Edinburgh Room, Municipal Chambers

Agenda – FSD – 05/09/2011 (PDF, 61.3 KB)

Report – FSD – 05/09/2011 (PDF, 172.3 KB)
Business Support Funding – Summary up to Period Ending June 2011

Report – FSD – 05/09/2011 (PDF, 175.5 KB)
Dunedin Visitor Economy Strategy Group

• Report – FSD – 05/09/2011 (PDF, 105.0 KB)
Forsyth Barr Stadium Debt Servicing Plan

Report – FSD – 05/09/2011 (PDF, 2.3 MB)
Stadium Precinct Executive Summary

Report – FSD – 05/09/2011 (PDF, 78.4 KB)
Filming Location Fee Policy

Report – FSD – 05/09/2011 (PDF, 562.8 KB)
Financial Result – 1 Month to 31 July 2011

Report – FSD – 05/09/2011 (PDF, 134.0 KB)
Funding to City Funding Safety Programme

Report – FSD – 05/09/2011 (PDF, 144.8 KB)
Targeted Rate for Earthquake Strengthening

Report – FSD – 05/09/2011 (PDF, 254.3 KB)
Octagon Free Wireless

Report – FSD – 05/09/2011 (PDF, 546.7 KB)
Dunedin Healthy Homes Initiative

Report – FSD – 05/09/2011 (PDF, 45.8 KB)
Waipori Fund – Report for Quarter Ending June 2011

• Report – FSD – 05/09/2011 (PDF, 340.5 KB)
Increased Capital in Dunedin Venues Management Limited and Dunedin Venues Limited

[DCC Link]

Posted by Elizabeth Kerr

92 Comments

Filed under DCC, DCHL, DVL, DVML, Economics, People, Politics, Project management, Sport, Stadiums

DCC and DCHL, was there ever any doubt?

### ODT Online Wed, 9 Feb 2011
Stadium debt may constrict DCC companies
By David Loughrey
The effects of servicing the debt being raised to pay for the Forsyth Barr Stadium is beginning to bite, with warnings Dunedin City Council-owned companies may struggle to take advantage of business opportunities that come their way. But amid the warnings came a reminder the period of tight financial times ahead was “spelled out in black and white” when decisions on the project were made.
Read more

****

DVML commercial manager Guy Hedderwick said last night Delta still had a corporate suite at the stadium.

### ODT Online Wed, 9 Feb 2011
Delta pulls out of seating package
By David Loughrey
Delta Utilities has pulled the plug on a $100,000 seating package at the Forsyth Barr Stadium in Dunedin, a matter described as being the result of actions of an “overzealous” executive. The withdrawal from the package meant a loss of projected income for the company running the stadium, Dunedin Venues Management Ltd (DVML), of $100,000 over a 10-year period.
Read more

Posted by Elizabeth Kerr

3 Comments

Filed under Construction, Economics, Politics, Project management, Stadiums