Tag Archives: Losses

Delta #EpicFail : L is for (Slow) Luggate Learner and T is for Turnip.

turnip [pinterest.com]Received from Christchurch Driver [CD]
Wed, 4 May 2016 at 12:55 a.m.

Readers, I must admit defeat. I have I think, even if I say so myself, achieved some quite good lines in my quest to succinctly describe the various acts of stupidity committed by Delta at the Noble Subdivision. But recently, an associate (probably keen to cut me down to size !) sent a piece from Fairfax by Tim Hunter, now at the National Business Review, following the Auditor-General’s report in 2014. I saw immediately I had been bested by a better scribe : He memorably described the Delta management as having “commercial acuity about as sharp as a turnip” . That I could reach such cutting brevity !! Mysteriously, no threat of defamation was forthcoming to Mr Hunter….

And as the coast is clear, to honour Mr Hunter, Delta management shall henceforth be referred to as the Delta Turnips….

Your correspondent was intrigued to read of the Lazarus like re-emergence of Luggate Park as a premium lifestyle subdivision destination of choice with prices for sections between $325,000 – $495,000. (Note, no offers are entertained – these are fixed prices say developers Willowridge !) If this goes according to plan, there appears to be a profit even larger than the reported Delta loss of $5.9M* for the enterprising Mr Allan Dippie, the latest owner of the ex Delta land.

Now, your correspondent understands that Mr Dippie may not have as many university degrees as the Delta directors, or possibly not one at all. Mr Dippie does not breathe the same rarefied directorial air as the likes of Mr Stuart McLauchlan, Mr Denham Shale and other ….directors. However Mr Dippie does know his Central Otago subdivision market very well, and further knows that land development sometimes has to be viewed long term, the way a Japanese banker views the deadbeat property loans they made in Tokyo in the 1980s that are still underwater. That is, if you still own the asset you haven’t lost anything, and time will do its work and lift values. The critical thing is to have the courage of your initial convictions, and stay the course. Yes, yes, I know, the Japanese banks are still waiting, but no waiting is required, it seems, in Luggate.

Readers, take a good long draught of Choysa : Delta had TWO choices in 2012 : Sell the land for basically nothing ($1M vs a total Delta investment of around $7M), or…wait until the market improves. Of course, Delta chose to destroy ratepayers’ funds value in a desperate attempt to show ratepayers they had “moved on” and it was all a bad dream –

If Delta had an ounce of the foresight of someone like Mr Dippie, who has been both very successful, and also very patient at times, they would have held the land. A few facts about the land – the 42 entry level sections to be sold in the next stage will be worth around $6M, added to the $9.17M of the 22 premium sections, gives a total of $16.2M. There possibly could be further sections that would increase the value, but the glass is dark on this detail.

After allowing for subdivision infrastructure and selling costs, the land that Delta sold for $1M three years ago would now realise them $9-10M. Yes readers, Delta could have made a genuine, non Aurora subsidised profit and got the civil work they wanted, at good prices. They could have even paid Mr Boult’s bank debt off, paid off the $1.935M bank loan, some interest to DCC treasury and the entire $5.5M advance and still have a bit left over.

What possessed them to act like lemmings jumping off a financial cliff ? Two words … Denham Shale. Mr Shale was the alleged heavy hitter brought in to clean up the Dunedin City Holdings Ltd (DCHL) and Delta mess after the Larsen report in 2011, along with Mr Bill Baylis and others. He knew even less about property development than the likes of Mr Ray Polson. L for Learner developers indeed. As Mr Hunter exclaimed, turnip acuity was all around. Mr Shale was of the school that says when you have a mess, a clean out, not a clean up is needed…. A clean up keeps the items that have a chance of retaining value. Mr Shale told Mr Polson to write down the value of Luggate and get shot of it in April 2012. Mr Polson, being the invertebrate mild mannered accountant he is, then parroted that line to the Delta board a month later. The rest is well known. A bath. This is all in the Auditor-General’s report, in Section 6, for readers that doubt your correspondent.

Mr Denham Shale’s legacy to the City of Dunedin is a $8-9M loss due to turnip advice (aka profoundly stupid advice) to sell land for a fraction of its cost and value. Any developer or person involved in land in Central Otago for any length of time has seen huge fluctuations in value, generally in a 7-year cycle… Your correspondent is one such person, who lays no claim to visions of the future, but who has had to hang tough for extended periods in Central Otago on various deals.

All Delta had to do was talk nicely to DCC Treasury, to explain the $5.5M advance they gave Delta was a couple more years away – they had already waited for five years, who’s counting anyway ? Make an offer to Mr Boult of his 50% share of slightly more than the $1M they received (he had already asked Delta to buy him out having seen the Delta trough was empty), and start paying interest on the $1.935M bank loan. Not difficult. But required some vertebrates.

Mr McLauchlan, Mr Shale, Mr Cameron and the other directors, yes, they all displayed “commercial acuity about as sharp as a turnip”. –How I love that phrase ! This band of Delta Directors could not grasp what to Mr Dippie is as natural as breathing – that they stopped making land a long time ago, around the time of the flood and Noah’s Ark. That people want to live in Central Otago, so therefore the land price will rise, maybe not when you think, but given time rise it will. This, Mr Shale, Mr McLauchlan, and (2014 Young Director of the year) Mr Cameron is called, SUPPLY & DEMAND. Your elementary lack of foresight and myopia has cost the City of Dunedin millions. L is for Learner, T is for Turnip. Which one applies, readers ?

[ends]

Election Year : This post is offered in the public interest. -Eds

Related Post and Comments:
30.4.16 Luggate à la Dunedin’s lad, Dippie

Auditor-General’s overview
Inquiry into property investments by Delta Utility Services Limited at Luggate and Jacks Point. Access the Auditor-general’s full report here:
http://www.oag.govt.nz/2014/delta

*The ‘Auditor-General’s overview’ states (page 5):
“Delta lost about $5.9 million on the Luggate investment and has projected a loss of about $2.8 million for Jacks Point. These losses are before tax, and Delta expects that they might yet be off set by tax credits of about $1.5 million for Luggate and about $0.8 million for Jacks Point. If so, the overall loss would be about $6.4 million.”

█ For more, enter the terms *delta*, *luggate*, *jacks point*, *auditor-general* or *noble* in the search box at right.

Posted by Elizabeth Kerr

Image: pinterest.com – turnip

4 Comments

Filed under Aurora Energy, Business, DCC, DCHL, DCTL, Delta, Democracy, District Plan, Dunedin, Economics, Finance, Geography, Housing, Infrastructure, Media, Name, New Zealand, OAG, Ombudsman, People, Politics, Project management, Property, Public interest, Resource management, Site, Town planning, Transportation, Travesty, What stadium

Luggate à la Dunedin’s lad, Dippie

L-plate [roadcodepractice.co.nz] 1

The jovial CD was driving towards Dunedin this morning…. gave me a wake-up call to foreshadow a new post pending for that old spectre : “L” for Luggate, or learner plates for Delta Directors and Mr Cameron.

Yessss. While the Noble subdivision at Yaldhurst heads for the rocks, it appears DCC Ratepayers have been doubly triply shafted at Luggate. Anyway, won’t steal CD’s thunder. He is in the offing!

Sat, 30 Apr 2016
ODT: Former Delta sections in Luggate hot property
Part of the big Luggate Park subdivision that lost Dunedin City Council-owned infrastructure company Delta $5.9million before tax in 2012 is being advertised for sale. The 22 sections in “Luggate Heights”, near Wanaka, range in price from $325,000 to $495,000, providing the owner, Willowridge Developments Ltd, with a potential gross return of $9,170,000. Similarly-sized sections at lower altitudes nearby were selling for as little as $128,000 five or six years ago.

Willowridge, owned by Allan Dippie, bought the 50ha, 160-section Luggate Park development last year from Auckland development company Dentils Ltd, which was unsuccessful in attempts to sell the sections. Dentils had bought the development from Delta and Queenstown property developer Jim Boult.

█ Willowridge Developments Ltd http://www.willowridge.co.nz/
█ LUGGATE PARK http://luggatepark.co.nz/

Luggate Park - Willowridge

Auditor-General’s overview
Inquiry into property investments by Delta Utility Services Limited at Luggate and Jacks Point. Access the Auditor-general’s full report here:
http://www.oag.govt.nz/2014/delta

█ For more, enter the terms *delta*, *luggate*, *jacks point* and *auditor-general* in the search box at right.

Posted by Elizabeth Kerr

*Image: roadcodepractice.co.nz – ‘L-plate’

6 Comments

Filed under Business, DCC, DCHL, DCTL, Delta, Democracy, Design, Economics, Finance, Geography, Housing, Infrastructure, Media, Name, New Zealand, OAG, People, Politics, Project management, Property, Public interest, Resource management, Site, Tourism, Town planning, Transportation, What stadium

Stadium costs +$20M per annum, against one Fleetwood Mac concert….

THIS DOESN’T SINK NEWS OF LATEST DELTA FINANCIAL BLOWOUT – NOBLE VILLAGE SUBDIVISION

I experienced Fleetwood Mac at Western Springs, Auckland in the 1980s, there is no way I want to see them live now in a crap-for-sound covered stadium at Dunedin. This cat has already eaten the cream. I might see them at Mt Smart, however.

How much has DCC/DVML paid to the promoter to get the band here?
They’ve spent $350,000 on tired roller Rod Stewart, who has yet to perform.

Fleetwood Mac - Christine McVie rejoining F.Mac 12.1.14 [pitchfork.com]

### ODT Online Fri, 20 Mar 2015
Fleetwood Mac to play Stadium
By Chris Morris
The rumours are true — Fleetwood Mac is coming to Dunedin. It was confirmed yesterday the group, one of the world’s best-selling bands, will perform its only South Island show at Forsyth Barr Stadium on Wednesday, November 18. Tickets costing between $100 and $300 plus fees will go on public sale from 10am on April 1, and a bumper crowd is predicted to pump millions of dollars into Dunedin’s economy. The British-American group’s Dunedin show will feature all five original band members, with Christine McVie having reunited with Mick Fleetwood, John McVie, Lindsey Buckingham and Stevie Nicks.
Read more

CroNix99 Uploaded on May 26, 2010
Fleetwood Mac – The Dance -1997 – Gypsy

CroNix99 Uploaded on Jul 2, 2010
Fleetwood Mac – Rhiannon – The Dance -1997

CroNix99 Uploaded on May 27, 2010
Fleetwood Mac – Landslide – 2004
Live In Boston – Say You Will Tour

Posted by Elizabeth Kerr

*Image: Fleetwood Mac – Christine McVie rejoining Fleetwood Mac 12.1.14 [pitchfork.com]

43 Comments

Filed under Business, Concerts, DCC, DCHL, DCTL, Democracy, DVL, DVML, Economics, Events, Geography, Hot air, Media, Name, New Zealand, People, Politics, Project management, Property, Site, Stadiums

Stadium Review: LGOIMA request and 2009 Town Hall speeches

████ Download: Stadium Review Nov v 15 (585 KB, DOC)

Copy received from Bev Butler
Sun, 30 Nov at 12:17 p.m.

Message: A while back I was told there was Rugby pressure happening behind the scenes to exclude the mothballing option.
Cheers, Bev

From: Bev Butler
To: Sandy Graham [DCC]; Grace Ockwell [DCC]
Subject: LGOIMA REQUEST: Stadium Review/Mothballing
Date: Sun, 30 Nov 2014 12:10:47 +1300

Sunday 30 November 2014

Dear Sandy and Grace

Earlier in the year it was announced that the stadium was to be reviewed and that all options would be considered, including mothballing.
Now with the recent release of the Stadium Review only two options are presented, namely, the status quo and the most extreme option of demolition.
1. Why were the options of sale and mothballing not reported on?
2. Did the Stadium Review committee look at the sale and mothballing options? If so, I request a copy of the findings. If not, why not?
3. Whose decision (names) was it to not include mothballing as an option?
4. Did the NZRU and/or ORFU have any input into the Review? If so, I request a copy of all documentation.
5. Who (names) from the NZRU/ORFU was consulted/involved in the Review?
6. Did any member of NZRU and/or ORFU influence/pressure/request that the mothballing option be removed/excluded from the Review? If so, who (names)?
7. Mayor Cull has publicly stated that the demolition option was included in the Review to show the “lunatic fringe” that demolition is not a realistic option.
a) Who (names) are the “lunatic fringe”?
b) If Mayor Cull is unable to name members of the “lunatic fringe” then why was the demolition option considered?
c) Why were the mothballing options not considered when well informed stadium critics had publicly called for this option? ie. Why was the extreme option from an unidentified “lunatic fringe” considered over the mothballing option proposed by identifiable well informed stadium critics, like myself, who have been proven correct in their predictions?
8. What part did Sir John Hansen play in stifling the mothballing option?
9. Will the mothballing options now be reviewed?

Yours sincerely
Bev Butler

___________________________________

REFRESH
Speeches made to Stop The Stadium public meeting held at Dunedin Town Hall on 29 March 2009:

Alistair Broad
Dave Cull
Gerry Eckhoff
Michael Stedman
Sukhi Turner

Speeches to Otago Regional Council (ORC) public forums for stadium:

Public Forum Speech to ORC by Bev Butler 11.2.09 – stadium meeting
Public Forum Speech to ORC by Bev Butler 3.3.09

___________________________________

On behalf of ratepayers and residents Dunedin City Council decided on and publicly listed ten conditions (10 lines in the sand) to be met for the stadium project. Unfortunately, this summary table shows the extent of departure!

Received from Bev Butler – Summary of Conditions
Sat, 29 Nov 2014 at 7.44 a.m.

[click to enlarge]
Summary of Conditions Butler

Recent Posts and Comments:
26.11.14 Cr Hilary Calvert, an embarrassment
22.11.14 ODT puffery for stadium rousing ?
21.11.14 Stadium Review: Mayor Cull exposed
19.11.14 Forsyth Barr Stadium Review
15.11.14 Stadium #TotalFail

Posted by Elizabeth Kerr

8 Comments

Filed under Architecture, Business, Construction, CST, DCC, Democracy, Economics, Events, Highlanders, Hot air, Name, New Zealand, NZRU, ORC, ORFU, People, Politics, Project management, Property, Site, Sport, Stadiums, STS, Town planning, University of Otago, Urban design

ODT puffery for stadium rousing ?

The banner at today’s ODT Online home page

ODT 22.11.14 Tuning up the DCC (screenshot bidrose) 1

Received, a snapshot at 11:14 a.m. (to read the article get the latest budgie cage liner full of advertising with not much else EXCEPT an exclusive interview)

ODT 22.11.14 Tuning up the DCC (article image bidrose) 1

Oh Dear Times
Sue Bidrose, ‘I’ve always said I just don’t want to work for someone who’s not as good as me’.

Alternative text, just an observation
From King James Bible, Psalms 8:2, “Out of the mouth of babes and sucklings hast thou ordained strength”.

Updated post 23.11.14 at 10:47 a.m.
● Read the interview (Sunday release) at ODT Online

The completely under-researched yet highly threshed and winnowed
Fubar Stadium Review released on Thursday 20 November will be tabled at Monday’s Extraordinary Council Meeting (Edinburgh Room, Municipal Chambers at 1:00 PM).

████ Download: Stadium Review Nov v 15 (585 KB, DOC)

As to timing of review and puffery, coincidence?

ODT used the same new face the day before to sell the ‘Stadium in the black’ message (see Friday’s front page graphic)

ODT 21.11.14 Stadium in the black - front page1

Anything for tenure. The motorbike makes her one of the boys, and the girls. This popularity farce-triumph(ant) is costing ratepayers +$20million pa.

The newspaper can’t distract from an extremely inadequate Stadium Review by throwing us lines about a recreational biker’s “life, job and sleepless nights”. There’s a public excluded Chief Executive Appraisal and Appointment Committee meeting at the Mayor’s Office on Monday 8 December, 8:00 AM.

Related Post and Comments:
21.11.14 Stadium Review: Mayor Cull exposed
20.11.14 Forsyth Barr Stadium Review

Posted by Elizabeth Kerr

47 Comments

Filed under Architecture, Business, Carisbrook, Construction, DCC, DCHL, DCTL, Delta, Democracy, Design, DVL, DVML, Economics, Enterprise Dunedin, Highlanders, Hot air, Media, Name, New Zealand, NZRU, ORC, ORFU, People, Pics, Politics, Project management, Property, Site, Sport, Stadiums, STS, Urban design

Stadium Review: Mayor Cull exposed

### radionz.co.nz Thursday 20 November 2014
Checkpoint with Mary Wilson
Dunedin Mayor: ‘Stadium is not a lemon’
A Dunedin City Council report has looked into demolishing the city’s covered rugby stadium built for 200 million dollars just three years ago.
Audio | Download: OggMP3 (4:48)

mothballstadium2

████ Download: Stadium Review Nov v 15 (585 KB, DOC)

● 15.3.11 Post: Cr Dave Cull speech to Town Hall Meeting [31.3.09]
● 27.4.09 Post: Contract signed

### stuff.co.nz Last updated 09:08 21/11/2014 | Southland Times
Stadium demolition option only for ‘lunatics’
By Wilma McKay
Dunedin’s mayor has said the city council only included an option to demolish the city’s stadium to shut down “a lunatic fringe”. In an interview with Mary Wilson from Radio New Zealand, Dunedin mayor Dave Cull said demolition was included in a review of stadium funding, ownership and operation “to put to bed the frequent and strident claims of a lunatic fringe”. Cull described the opposing group as “a small vociferous band of critics all the way along through this process who have said it would be much better to knock [the stadium] over”. “So, we said ‘okay, we’ll look at that option, we’ll cost it, and that should put it to bed once and for all’,” he said in the interview. As it turned out demolition proved unworkable economically, Cull said.
City councillors are to gather for an extraordinary meeting on Monday to discuss its recommendations out of the review, including one that ratepayers stump up $18.1 million extra over the next 10 years to keep the arena afloat.
Read more

Stuff: Stadium under fire as city eyes next steps | Southland Times

****

### ODT Online Fri, 21 Nov 2014
Stadium review ‘kick in the guts for ratepayers’
By Chris Morris
Dunedin city councillors are preparing for a fresh war of words over Forsyth Barr Stadium, following confirmation it needs another $1.81million a year from ratepayers. The extra costs, together with a nearly $1million budget hole to be plugged by mid-2015, would see nearly $20million in extra ratepayer funding pumped into the venue over the next decade.
The findings – outlined with the release of the Dunedin City Council’s stadium review yesterday – prompted a mixture of resigned acceptance and recriminations from some councillors.
Read more

ODT: ‘I don’t think we had much choice’- councillor
[Richard Thomson, chairman, DCC Finance Committee]

Agenda for Extraordinary Meeting | Monday 24 Nov at 1.00 PM
Venue: Edinburgh Room, Municipal Chambers

Related Posts and Comments:
19.11.14 Forsyth Barr Stadium Review
15.11.14 Stadium #TotalFail
12.11.14 DVML: Two directors gone before release of stadium review
8.10.14 Stadium: Liability Cull warns ratepayers could pay more to DVML
6.10.14 Stadium misses —like it would ever happen, Terry
4.10.14 DCHL & DVML: Call for directors
30.9.14 DCHL financial result
25.9.14 DVML on Otago Rugby and Rod
13.9.14 DVML and ORFU refuse to disclose 2012 Otago Rugby deal
10.9.14 Stadium: Behaviours at Suite 29 (intrepid tales)
8.9.14 Jim Harland and the stadium MESS
28.8.14 Stadium Review: dark yet rosy thoughts [joke, honest]
15.7.14 Stadium: Who is being protected?
15.7.14 Rugby stadiums not filling #SkyTV
29.6.14 Stadium: NZRU in the sights
24.6.14 Stadium: DVML, mothballing, and ‘those TVs’ #LGOIMA
18.6.14 Crowe Horwath Report (May 2014) – Review of DVML Expenses
13.5.14 Stadium benefits, what?! (Copeman)
11.5.14 Stadium: DCC proposes extra funds for stadium debt repayment
5.3.14 Stadium: Fairfax business editor pokes DCC’s Fubar
26.2.14 Stadium costs, read uncapped multimillion-dollar LOSSES
24.2.14 Carisbrook Stadium Trust: ‘Facts about the new Stadium’ (31.5.08)
22.2.14 Carisbrook Stadium Trust costs
2.2.14 Stadium: ODT editorial (1.2.14) —Garbutt debunks myths
1.2.14 Stadium: ODT editorial (1.2.14) —“Palpable claptrap” says Oaten
27.1.14 Stadium: No 4 at interest.co.nz
24.1.14 Stadium: It came to pass . . . [stadium review announced]

█ For more, enter *stadium*, *dvml*, *terry davies*, *cst*, *dchl*, *dcc*, *annual plan*, *rugby* or *carisbrook* in the search box at right.
odt may 31 2008-1 (pdf cleaned)ODT 31.5.08 (advertisement) | PDF fax copy cleaned by whatifdunedin
[click to enlarge]

Posted by Elizabeth Kerr

65 Comments

Filed under Business, Carisbrook, Construction, CST, DCC, DCHL, DCTL, Democracy, Design, DVL, DVML, Economics, Enterprise Dunedin, Events, Highlanders, Hot air, LGNZ, Media, Name, New Zealand, NZRU, ORC, ORFU, People, Politics, Project management, Property, Site, Sport, Stadiums, Town planning, Urban design

Forsyth Barr Stadium Review

Updated post 20.11.14 at 2:31 p.m.

████ Download: Stadium Review Nov v 15 (585 KB, DOC)

This Report should be left on the table by Councillors at the Extraordinary Council Meeting on Monday 24 November, since the implications of the Review’s published content and lack of content are very serious indeed.

Stadium Review - SummaryRecommendations 24 Nov 2014

Posted by Elizabeth Kerr

79 Comments

Filed under Business, CST, DCC, DCHL, DCTL, Democracy, DVL, DVML, Economics, New Zealand, NZRU, ORFU, People, Politics, Project management, Property, Site, Sport, Stadiums