Hotel MOU: DCC #fail

█ Hotel Memorandum of Understanding (PDF, 297 KB)

—

Comment received from Rob Hamlin
Submitted on 2014/03/11 at 10:54 am

Perhaps the most unfortunate thing about this is the precedent that it sets. The MOU essentially commits the Council to make it happen by whatever means and by whatever council costs are necessary. The ludicrous conflict of interest that this sets up between the Council as developer regulator and Council as developer agent is breezily dismissed early on. If the DCC fails to deliver what the developer wants, then they (we) get to pay all the developer’s costs too. Thereby setting up a situation with considerable motive for the developer to increase the toxicity of this regulatory ‘poison pill’ by inflating these costs a la Carisbrook Stadium Charitable Trust.

There is nothing in this document that indicates why it is a special case or anything that defines it as a ‘one off’. This means that the next time a large developer wants to carve up rural zoned land on the Taieri or build an exclusive shooting resort next to the Albatross Colony all they have to do is download the .pdf of this MOU from McPravda’s website, replace Jing Song’s name with their own and present it to Cull and Bidrose with a request to ‘please sign this forthwith’. I can see no legal grounds on the basis of equity of treatment of development proposals by the territorial authority upon which Cull and Bidrose could reasonably refuse to do so. Refusal would therefore promptly lead to court action.

[ends]

—

Related Posts and Comments:
10.3.14 Hotel: DCC and COC sell out Dunedin community to Chinese trojans
26.2.14 Hotel: Rosemary McQueen on consent decision LUC 2012-212
14.2.14 Hotel: The height of arrogance
25.6.13 Hotel/Apartment Tower decision to be appealed

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

—

Posted by Elizabeth Kerr

Hotel: DCC and COC sell out Dunedin community to Chinese trojans

‘Perceived’ Conflict of Interest:
Dave Cull (also Mayor of Dunedin) has used Steve Rodgers (partner in Rodgers Law; also a director of Betterways Advisory Ltd) as his personal solicitor in recent times. The mayor is welcome to confirm or deny this in order to set the record straight.

Dunedin’s Old-Boy CARGO CULT is disabling your City

ODT Online 21.12.12 (screenshot)

—

Dunedin City Council – Media Release
Next Step for Waterfront Hotel Proposal

This item was published on 10 Mar 2014

Mayor of Dunedin Dave Cull and Betterways Advisory Limited have today announced the signing of an agreement to work together to try to achieve the construction of a five-star hotel for Dunedin.

The parties have signed a Memorandum of Understanding (MoU) that establishes a framework and a process to address issues raised by an earlier resource consent application.

Betterways’ application to build a 27-storey, five-star hotel at 41 Wharf Street was declined resource consent in June last year.

Mr Cull says, “Since that time, the DCC has worked extensively with Betterways to find whether a hotel can be constructed on this site that both realises Betterways’ investment ambitions and benefits the city.”

The DCC and Betterways agree that connectivity issues are a major focus going forward and have committed to work together to seek solutions.

If solutions can be found, the DCC will set up an urban design panel to provide independent design review and subsequent advice. Their focus will be on sustainable development and the creation of a design that contributes to a safe, healthy and attractive urban environment.

The panel will encourage best practice approaches to development, specific to the hotel’s site. This process provides an independent peer review from leaders in a variety of relevant professional institutes, including the development sector, practitioners and academics.

“Urban design panels are widely used in other centres. We’re really delighted to have an opportunity to use this successful formula here in Dunedin, and on such an important project for the city,” Mr Cull says.

Once the design panel and DCC staff members were satisfied the new hotel proposal had resolved the issues, the DCC would initiate a District Plan Change process to change the zoning of the Wharf Street site from industrial so a panel-approved design could be built on the site.

Any development proposal would still be subject to the Resource Management Act.

One of Betterways’ owners, Jing Song, says, “After a very challenging two years, we are delighted that the Council has shown a commitment to our investment in this beautiful city. We know our hotel plans are exciting for Dunedin and we are very pleased to have established a framework to deliver a hotel that meets the desires of the local community.”

The Council agreed to sign the MoU during the non-public part of its meeting on 24 February.

Betterways will make a decision about whether to pursue its appeal when the process agreed through the MoU has advanced enough to show that the proposal will be supported by the Council.

Hotel MOU (PDF, 297 KB)

Contact Mayor of Dunedin on 03 477 4000.

DCC Link

—

Related Posts and Comments:
26.2.14 Hotel: Rosemary McQueen on consent decision LUC 2012-212
14.2.14 Hotel: The height of arrogance
25.6.13 Hotel/Apartment Tower decision to be appealed

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

ODT 10.3.14: Agreement signed over waterfront hotel

—

Posted by Elizabeth Kerr

41 Wharf Street —DCC ends debacle

Fear not! More costly settlement is due.
There’s the perplexing State Highway 88 Realignment Project for Council to conclude with affected parties damaged by foul-play planning activity, and the new round of ‘proper’ designation! This will make Mr Barnett’s cheque seem like a 4% discount fuel voucher ripped from a mile-long supermarket receipt for your best ever, most hair-raising Christmas shop!

### ODT Online Tue, 27 Aug 2013
Apology, payout to developer
By Debbie Porteous
Dunedin developer Tim Barnett has received a public apology and a $200,000 payout following a lengthy battle to recover his costs after the Dunedin City Council restricted his ability to develop his harbourside property. The property, at 41 Wharf St, has since been sold to developers who are hoping to build a 27-storey hotel on it.

41 Wharf Street, Dunedin [DCC WebMap]

DCC chief executive Paul Orders yesterday apologised to Mr Barnett, of Arthur Barnett Properties, for the inconvenience caused by the council’s decision-making since 2008. The formal apology, issued by Mr Orders yesterday, read:

”Council apologises for the inconvenience, and also thanks Mr Barnett for working with council in good faith as the parties explored options over some years. Mr Barnett has a long history of commitment to the city of Dunedin. Council trusts that the good working relationship that has developed between Mr Barnett and the council over the years will continue.”

The $200,000 covers Mr Barnett’s out-of-pocket costs (just under $118,000), the interest on his costs ($41,000) and a contribution to his legal fees during his lengthy attempt to first remove the restrictions on developing the site and then recover from the council the cost of those restrictions.
Read more

For more on 41 Wharf Street, enter *hotel* in the search box at right.

—

Posted by Elizabeth Kerr

DCC Long Term Plan 2012/13 – 2021/22, and $more

### ch9.co.nz June 21, 2012 – 5:51pm
Council to vote on rates increase
Twelve months’ work planning, listening, debating, and budgeting is almost over. On Monday, the Dunedin City Council will vote to set a 4.9% rates increase in its annual plan, a percentage even lower than promised. But within the same agenda is almost $60 million of debt the city plans to draw down this year.
Video

—

Meeting of Dunedin City Council
Monday 25 June 2012 at 2:00 PM
Council Chamber, Municipal Chambers

Agenda – Council – 25/06/2012 (PDF, 97.8 KB)

Reports – Council – 25/06/2012 (PDF, 1.8 MB)
Items to be made public and have been authorised for release under LGOIMA

Report – Council – 25/06/2012 (PDF, 136.6 KB)
Memo of items to be made public and have been authorised for release under LGOIMA

Report – Council – 25/06/2012 (PDF, 154.4 KB)
Adoption of the Long Term Plan 2012/13 – 2021/22

Report – Council – 25/06/2012 (PDF, 11.8 MB)
Adoption of the Long Term Plan 2012/13 – 2021/22 – Attachment

Report – Council – 25/06/2012 (PDF, 659.1 KB)
Setting of Rates for 2012/13 Financial Year

Report – Council – 25/06/2012 (PDF, 134.2 KB)
Security for Borrowings

Report – Council – 25/06/2012 (PDF, 70.1 KB)
Proposed District Plan Change 13: Hazardous Substances – Rescindment of Resolution

Report – Council – 25/06/2012 (PDF, 42.4 KB)
Statement of Intent for Dunedin Venues Limited and Dunedin Venues Management Limited

Report – Council – 25/06/2012 (PDF, 5.6 MB)
Operative Waste Management and Minimisation Plan Review

DCC Link

—

Posted by Elizabeth Kerr

20 April Extraordinary Meeting of Council: Agenda and Report

Agenda – Council – 20/04/2009 (PDF, 13.5 kb, new window)

Report – Council – 20/4/2009 (PDF, 472.5 kb, new window)
This report identifies progress made in meeting the terms and conditions the Council has set down for construction of the Awatea Street Stadium to be known as the Forsyth Barr Stadium at the University Plaza.

—

The recommendations in the Report are:

1 That this report is received.

2 That the GMP, including escalation, from Hawkins Construct Ltd of $130,414,595 be accepted noting that the total project cost, including professional fees and adjusted sums is $164,012,035 and that there is an unallocated construction contingency of $1,387,865 for a total construction project cost of $165,400,000.

3 That progress in meeting the Dunedin City Council’s resolution 7 passed at a meeting held on 9 February 2009 which committed the Council to the Awatea Street Stadium project on the following terms and conditions be noted:

7a) Confirmation of Otago Regional Council funding of not less than $37.5 million – This has been confirmed by the Otago Regional Council.

7b) Satisfactory conclusion to the planning process and approval of a Plan Change by the Courts – The appellants have withdrawn their appeals to the Environment Court and the Council has declared the Plan Change operative.

7c) i) The Rates and Funding Working Party continues to identify ways in which the ratepayers contributions to the capital cost of the stadium can be reduced by $20 million providing it comes from sources other than the Holding Company – This is not a requirement to be completed before the signing of the contract.

ii) Discussion and agreement with the ORC occurs on the sharing of any external funding which reduces ratepayer costs – Discussions are underway between the Council’s General Manager Finance and Corporate Support and the Otago Regional Council’s Director Corporate Services.

7d) That Council retains the funding line in the draft LTCCP for the project – The Council has retained the funding line in the draft LTCCP for the project which is consistent with last year when the substantive consultation took place with the community of Dunedin.

7e) That a funding source to meet the $15 million shortfall in private sector funding be confirmed – The Government has agreed to underwrite the $15 million shortfall in private sector funding and discussions are underway to confirm the detail of this arrangement. The Hon Murray McCully is meeting with the Mayor, Deputy Mayor, representatives from CST and officials on Wednesday 15 April 2009 to further progress this.

7f) That the DCC instructs the CST to continue to investigate ways be either:
i) savings on the GMP budget
ii) additional funding over and above the target of $45.5 million
iii) to address the $3 million shortfall of funding from the target of $10 million, from the Otago Community Trust.
The Carisbrook Stadium Trust and its project delivery team are aware of the need to investigate ways to find the $3 million shortfall in funding from the Community Trust of Otago which has been confirmed at $7 million rather than the targeted $10 million and also continuing to raise funding over and above the $45.5 million private sector target.

Attachments
1 Hawkins Construction Ltd letter of 15 April 2009
2 Layman’s Guide to the Construction Contract from the City Solicitor

—

Posted by Elizabeth Kerr

StS withdrawal of appeals?

Council has today been advised by Stop the Stadium that they have withdrawn their appeal against the Stadium Plan Change and also their appeal against the Notice of Requirement for the arterial road. They have also issued a press statement to this effect. It is not, as yet, on their website though!

This from a very good source.