Tag Archives: Public funds

West Harbour Recreation Trail —Devastation caused to Rotary project

The three-year $200,000 West Harbour Recreation Trail project by the Rotary Club of Dunedin aims to beautify the edges of a 3km section of the cycleway-walkway, from the Otago Boat Harbour to Maia.

On May 26, a Friday afternoon, two Rotarians turned up at the boat harbour end of the Trail to set out the location of new exercise equipment for public use (in preparation for a June 10 working bee) – the next phase of the harbourside project. The men were astounded to find a council contractor, ostensibly there to repair the harbour wall, running heavy machinery across the mown green strip, seriously damaging the designated public amenity area.

While Rotary’s West Harbour Recreation Trail is a council approved project, and the extended site receives maintenance from Taskforce Green, the DCC had completely failed to advise and coordinate with Rotary before earthworks commenced for repair of the seawall. How does this happen ??!

Not such a bad job until you look westward, other side of the orange safety nets:

DCC Webmap – West Harbour Recreation Trail (damaged section)

Apparently, DCC has assured Rotary that the damage will be put right by the contractor. However, because of no drying for some time Rotary’s scheduled work at this site is on hold (at least a five month delay).

Rotarians had raised funds from the public to carry out the project.

One of the Rotarians said he was ‘incandescent with rage’ over it – and did not often get incandescent!!

On Tuesday (May 30) I visited the area to take photographs.

This is yet another example of council ineptitude where the left hand doesn’t know what the right hand’s doing. The council’s lack of oversight and the resulting damage may necessitate deeper foundations for the exercise equipment than Rotary had anticipated and budgeted. Their working bee planned for June 10 will be reduced in scale, with only installation of exercise equipment at Ravensbourne Footbridge taking place. The working bees for July and August have been cancelled as the site won’t be in a fit state to work on. Timing of the provision of barbeque facilities as part of the landscaping project is also affected.

There is the Huge Irony that Rotary have only just been awarded 1st Place by Keep Dunedin Beautiful, for their work on the recreation trail. The award came with a $100 cash prize.

Thankfully, say Rotarians, the damage wasn’t done until after the Trees for Babies planting was done on Mother’s Day (14 May).

The Keep Dunedin Beautiful Awards “celebrate and honour the people of Dunedin who are committed to beautifying their city and caring for their environment through volunteer action”.

“Each Autumn, in partnership with Rotary Dunedin, Keep Dunedin Beautiful organises tree plantings for babies and other family members in city reserves. Trees for Babies is a long-term native tree-planting project where family members can celebrate the birth of a child or any significant family milestone. It also contributes to a native re-vegetation project in a city reserve.”

Related Post and Comment:
7.8.15 Dunedin Rotary Club | West Harbour Recreation Trail

Posted by Elizabeth Kerr

This post is offered in the public interest.

Advertisements

9 Comments

Filed under Business, Construction, Cycle network, DCC, Democracy, Design, Dunedin, Economics, Education, Finance, Health & Safety, Infrastructure, Name, New Zealand, People, Pet projects, Project management, Property, Public interest, Resource management, Site, Sport, Tourism, Town planning, Travesty, Urban design, What stadium

thoughts and faces #loosematerial

My father [never a follower of the FedUp Farmers, as he deemed them; always the campaigner for removal of farm subsidies, to enhance production and market competition] had ‘stock’ phrases with which to judge the faces of female adversaries, those with little brain or spine in politics, pretenders. One adept phrase that sticks in my mind is “like a horse eating thistles” —so I look on the following with my tinted lens, and laugh, rurally (ruefully). No one target.

On 19 May @StuFleming tweeted: “Spend $200k, revenue projections of $2.4M to others, 10% margin yields say $240k net”
[minus ODT news photo of face]

[DUD ‘money hype’ typically depends on false multipliers, anechoic silences, and arrogant self-belief —this (yes) bleak statement applies across a broad range of proposed deals and associated marketing detritus in the city, especially to events, conferences, sport, hospitality and accommodation, and even the re-use (Not conservation) of truly rare and precious instances of historic heritage] Here’s to all the fricking horses out there, including hypocritical colleagues and friends with blinkers like demo balls prepared to squeeze the last dollar and pass us to Hell. Anyway, back to “the business”…. cargo cult tourism. The wider effects of tourism are like those of dairying. Too many eggs in one basket and everybody (I mean, everybody) ends up doing it badly —killing Our Place for generations. Greed, like endorphins, like a running addiction, binds them up. They think they’re bright, they think they’re enablers (read risk takers/investors centred on their own gains only), they think they’re entrepreneurs, better than others (but because I for one will tell you things you don’t want to hear, you’ll say “I’ll ring you tomorrow”, that silence again) but they’re just funneled, tunneled sheepybaas – doing it wrong. Like cows, deer, Chinese gooseberries (Kiwifruit!), wines, stadiums….. or ‘getting a room’ behind the poorly remembered, heavily made-up, Disney’d facade of our city and nationhood. The worst kind didn’t, or didn’t bother to, ‘grow up’ here. They get desperate, create mess, import other yes men. Ring you like nothing happened, their exploits —not to ask deeply madly who and how you really are.

### ODT Online Sat, 20 May 2017
Trenz prompts high aspirations
By David Loughrey
Next year’s Trenz conference in Dunedin is set to cost ratepayers $200,000, but the long-term pay-off should run well into the millions.
The Dunedin City Council will next week be given an idea of the costs to the city of hosting the conference from May 7 to 10, and also the estimated benefits. The city learned last week it would host the tourism industry event next year, bringing up to 1200 international travel and tourism buyers, media and New Zealand tourism operators to Dunedin. It will be the first time the event, run by Tourism Industry Aotearoa (TIA), has come to Dunedin and the first time it has been hosted outside Auckland, Rotorua, Christchurch or Queenstown since it began in the 1960s. Trenz is an opportunity for New Zealand tourism operators to sell their product to buyers, effectively overseas travel agents who put together itineraries for overseas tourists. Attracting more than 350 buyers to experience the tourism products on offer here is considered a huge coup. On average, each buyer sends 4000 visitors a year to New Zealand, totalling 1.5 million. It comes as figures show New Zealand’s tourism market is expected to continue to grow strongly, topping $15 billion by 2023. Tourism contributes more than $690 million to Dunedin’s economy every year.
Read more

Meanwhile, although we (‘our stock’ NZ) and the UK farm gate look pretty much the same……

‘Herdwick Shepherd’ aka James Rebanks (@herdyshepherd1) farms Herdwick sheep in the English Lake District. Author of bestselling memoir, The Shepherd’s Life:

### ODT Online Saturday, 20 May 2017
OE to Britain set to get tougher
Prime Minister Bill English says the Conservative Party’s new plans to clamp down on immigration will sting New Zealanders wanting to live in the United Kingdom, including on the traditional OE, but there is little he can do until Brexit is completed. The British party’s election manifesto includes plans to drastically cut net migration from 273,000 to less than 100,000 by targeting students and those on working visas. It proposes cutting the number of skilled migrants to get visas, higher levies on employers who take on migrant workers and tripling the National Health Service immigration health surcharge from £200 to £600 ($NZ380 to $NZ1130) a year for those in the UK on visas of more than six months and 450 for international students. That surcharge increase will also affect those on the traditional OE, although there is no mention of scrapping the two-year youth mobility visa which allows young New Zealanders to get a two-year visa to work and travel in the United Kingdom. Mr English said the changes would affect those on their OE but they would have to grin and bear it until Brexit was completed. NZME.
Read more

Super City mayor Phil Goff has a plan for getting money from tourists – it bears some similarity to that of the Mongrel Mob……

### NZ Herald Thu, 18 May 2017
Winston Aldworth: Seeking the smart money
OPINION What do Phil Goff and the Mongrel Mob have in common? As hundreds of travel industry figures from all around the world gathered in Auckland for last week’s Trenz conference, one of the many topics up for discussion was the Auckland mayor’s enthusiasm for a hotel bed tax on visitors to the city. Meanwhile, up north at Ahipara on Ninety Mile Beach, three German tourists were approached by two local Mongrel Mob members who told them that they were on Maori land, and had to pay koha. They also told the tourists they’d be taking a few of their cigarettes. A tobacco tax, if you will. Perhaps their plan for putting heavy taxes on visitors was inspired by the Super City mayor. Goff’s bed tax is about as blunt an instrument as the Mob’s shakedown. “Look there’s a foreigner! Let’s get a couple of bucks off them.” The airport tax introduced by John Key a year ago is equally clumsy. It’s a travesty that these tariffs are the best we can come up with for making money out of tourism. Yes, other countries put dull levies on visitor arrivals, but that’s no reason to follow suit. We New Zealanders pride ourselves on being innovators, so let’s find innovative ways to get more money out of the tourism sector. Both Goff and Key were ministers in governments that did everything they could to remove tariffs from the dairy trade. Today, the best and brightest marketing wallahs of Goff’s inner circle are putting forward a plan no more sophisticated than one devised by two Mongrel Mob members standing on a Northland beach. I’m not against making money out of tourists — quite the opposite, in fact. I think it’s terrific that our country can be boosted by an industry that encourages us to care for our environment, celebrate the things that make our culture unique and spreads revenue quickly and efficiently to the regions. But how about instead of putting a dumb tax on the visitors, we upsell them? Take their money at the gate for sure, but give them something special in return.
Read more

Enough randomising. More rain and ice falls.

Posted by Elizabeth Kerr

This post is offered in the public interest.

24 Comments

Filed under Architecture, Baloney, Business, Carisbrook, Central Otago, COC (Otago), Concerts, Construction, Corruption, Crime, CST, Cycle network, Democracy, Design, Dunedin, Economics, Education, Electricity, Enterprise Dunedin, Events, Finance, Freedom camping, Geography, Health & Safety, Heritage, Highlanders, Hospital, Hotel, Housing, Infrastructure, Media, Music, Name, New Zealand, NZRU, OAG, Offshore drilling, ORFU, Otago Polytechnic, People, Perversion, Pet projects, Politics, Pools, Project management, Property, Public interest, Queenstown Lakes, Resource management, SDHB, SFO, Site, South Dunedin, Sport, Stadiums, Technology, Tourism, Town planning, Transportation, Travesty, University of Otago, Urban design

Regional council builds Palace, refuses help to dredge Otago boat harbour

The ironies are Most Apparent.

The Otago Regional Council contributed $30m to the stadium roof (an activity beyond its local authority mandate), yet the council has no intention of helping the Otago Yacht Club to maintain the city’s marina, the Otago Boat Harbour.

[click to enlarge]
DCC Webmaps – Otago Boat Harbour at Mouth of Leith JanFeb 2013

Otago Yacht Club’s origin dates back to 1892, making it one of the oldest yacht clubs in Otago. The club caters for a range of sailing interests from keelboats to trailer yachts and centreboarders. The club also operates keeler haul-out facilities and welcomes visiting boats. The club manages a full events programme during summer, including harbour, coastal and ocean races. On Sunday mornings in the season the club runs ‘learn to sail’ and ‘learn to race’ programmes which cater for all ages. The clubhouse is a popular venue for private functions and for local organisations to hold meetings and events. Within walking distance of the city centre, the clubhouse offers showers, laundry facilities, email connections etc. The resident caretaker-manager will usually manage to accommodate requests for berthage for boats up to 50 feet. The alongside mooring facilities consist of several large punts inside a walled boat harbour. Due to silting, access to the boat harbour has only been tenable approximately two hours either side of high tide for boats with 2m draft. The Otago boat harbour was last dredged in 1995.
Source: otagoyachtclub.org.nz

****

### ODT Online Thu, 20 Apr 2017
Club gets go-ahead to dredge boat harbour
By David Loughrey
The Otago Boat Harbour is about to get its first dredging in more than 20 years, after the facility reached such a state rescue vessels could not leave the harbour at low tide. The work, expected to start soon, has been described as a major achievement by the Otago Yacht Club, which leases the boat harbour. Club vice-commodore Blair McNab said the cost of the project – more than $300,000 – was being paid for from grants and club membership fees. […] The club recently received resource consent from the Dunedin City Council for the work. The consent allowed the club to deposit dredged sediment and soil on land in Magnet St, behind the club, for drying. Mr McNab said once the dredged material had been dried, which took about two weeks, it would be taken to the nearby Logan Point quarry. The consent said once the work was completed, about 100cu m would remain on the grass area at Magnet St to form a barrier around its perimeter, and provide better drainage. The consent decision said the boat harbour was in such a state that at low tide, craft used for harbour rescues could not get out. […] The club had hoped the Otago Regional Council might help with the cost of the dredging, as alterations to the Water of Leith meant more spoil was coming from the nearby mouth of the stream. Mr McNab said it appeared the council was not going to help.
Read more

The Star April 2014 via Otago Yacht Club. Also at ODT Online 22.4.14

****

The Otago Regional Council’s “special consultation” over its Dunedin headquarters is flawed, writes former councillor Gerrard Eckhoff.

### ODT Online Tue, 18 Apr 2017
Review needed in lieu of proper consultation
By Gerrard Eckhoff
The Otago Regional Council’s annual plan is now open for public consultation. Implicit in the word consultation is the opening of a meaningful dialogue with the public. It would be entirely disingenuous for any local authority to enter into discussion on their annual plan by merely informing the public of council intent without showing a willingness to accept “the wisdom of crowds”.
….This year’s ORC annual plan contains four lines on “Dunedin building review” in its feedback document which could easily be missed at first reading. To its credit, the council has finally accepted its statutory obligation for “special consultation” on this $30million major project.
….The last time the council ventured forth on a new building project without any prior special consultation, it cost the ratepayers upwards of $3million for the concept design and drawings alone. The cost of that proposal was well over $30million and it was never built. It is, therefore, hard to reconcile how the new building/s is going to be around the projected $20million mark, unless building costs have halved in Dunedin from eight years or so ago. The potential cost of a new car park building must also be factored in, so the ratepayers could soon be the lucky owners of two new buildings, as well as a difficult-to-sell ORC headquarters building in Stafford St.
Read more

DCC Webmap – Dowling St carpark JanFeb 2013, ORC office site starred

Related Posts and Comments:
9.1.17 ORC $wimming in it —SHOULD afford more Otago environmental…
15.8.16 ORC : Official complaints show integrity
22.6.16 ORC New HQ : Reminder, fiduciary duty and core responsibilities
● 9.6.16 ORC empire building again : Consultants give questionable options…
11.8.12 ODT editorial (spot on!) — ORC temporary headquarters
26.6.09 ORC headquarters [incl news items to present day]

Posted by Elizabeth Kerr

This post is offered in the public interest.

*Images: Otago Yacht Club except where stated otherwise.

14 Comments

Filed under Business, DCC, Democracy, Dunedin, Economics, Education, Finance, Geography, Heritage, Infrastructure, Media, Name, New Zealand, ORC, People, Perversion, POL, Politics, Project management, Property, Public interest, Resource management, Site, Sport, Tourism, Town planning, Transportation, Travesty, Urban design, What stadium

DVML, ‘Money for jam…..fig jam’

Why does no-one want to discuss invoices created by DVML commercial manager Guy Hedderwick on his extensive travels, except for Dunedin campaigner Bev Butler? Who signed them off? Neville Frost (DVML finance manager) and Darren Burden (ex DVML chief executive). Why is Hedderwick at Adelaide working part-time for DVML when there’s an empty, brand new multimillion-dollar stadium sinking into the mire at Dunedin? Doesn’t Hedderwick also work for the Otago Rugby Football Union (ORFU)? What’s really happening?

Bev Butler [odt.co.nz] 2This morning we have seen media reaction to Bev Butler’s investigation into Guy Hedderwick’s expenses using the Local Government Official Information and Meetings Act (LGOIMA) to obtain invoices —we have also seen Otago Daily Times reporting various replies it has sought from the local burghers about this.

Some invoices show stays in five-star hotel rooms costing up to US$300 per night. There is a swathe of rib-eye steaks and expensive bottles of wine attending Hedderwick’s travel across the world and domestic.

█ What did Butler say in her Media Release to upset DVML finance manager Neville Frost (ex ORFU)? Find out below.

### ODT Online Sat, 22 Mar 2014
DVML head slams Butler’s allegations
By Chris Morris
Allegations of inappropriate spending by a former manager at Forsyth Barr Stadium have prompted an angry retort from the company running the venue. The claims came from former Stop the Stadium president Bev Butler in response to invoices and other documents released to her by Dunedin Venues Management Ltd, which runs the stadium. The material showed DVML’s former commercial manager, Guy Hedderwick, had accrued nearly $80,000 in travel costs and expenses while taking 51 work-related trips since 2010.
Read more

### ODT Online Sat, 22 Mar 2014
Company threatening to charge for OIA answers
By Chris Morris
The company running Dunedin’s Forsyth Barr Stadium is threatening to charge for future responses to official information requests after being inundated with questions from stadium critic Bev Butler. The move by Dunedin Venues Management Ltd was immediately slammed by Ms Butler yesterday, who said it was ”an attempt to keep me off their trail”.
Read more

MEDIA RELEASE Sunday 23 March 2014
By Bev Butler

MONEY FOR JAM…..FIG JAM

Ratepayers of Dunedin will once again be amazed with the news that they have paid over $80,000 for the activities of the “departed” commercial manager of DVML, Guy Hedderwick, to travel the world leading the life of Riley with little noticeable benefit.

Readers of some newspapers will have learned recently that Dunedin Venues Management Ltd (DVML), the Dunedin City Council owned company that runs the stadium, paid out over $54,000 in entitlements to former chief executive David Davies when he returned to Wales, and just on $30,000 when CEO Darren Burden left to run the Christchurch stadium after a year’s work with DVML. The amounts and details of any “entitlements” paid to DVML’s commercial manager were refused on the basis of Mr Hedderwick’s privacy after the DVML board chairman, Canterbury resident, Sir John Hansen was advised by DVML staff that Mr Hedderwick’s privacy outweighed public interest.

While these details remain hidden, what has surfaced is just what it has cost Dunedin ratepayers to keep Mr Hedderwick in the manner to which he clearly has become accustomed.

Mr Hedderwick left Dunedin around August of 2013 to pursue a role with DVML in Adelaide similar to the one he had in Dunedin; with arrangements in place that see DVML continuing to employ Mr Hedderwick and meet his expenses while he pursues his role of attracting acts and sponsors to the stadium. His efforts have been almost totally in vain. The only act to appear at the stadium since Mr Hedderwick has been living in Adelaide has been an Australian based franchised Abba look-alike band, Bjorn Again, who in their previous visit to Dunedin appeared at the Regent Theatre. The act attracted 3500 people to the stadium. It was reported at the time that while a similar event the year before had attracted twice this number, DVML were “pleased” at this response. The rationale for this pleasure is hard to fathom.

But the cost of Mr Hedderwick’s “work” has been, in contrast to his work achievements, simply staggering. The facts behind Mr Hedderwick’s spending have been revealed after constant requests for information by Bev Butler to Neville Frost, financial manager of DVML. The information has had to be teased out over a significant period of time, but now is starting to be revealed in some sunlight.

Mr Hedderwick’s travel, in his quest for acts and sponsors for the stadium, has taken him to:

● Italy
● Singapore
● USA
● Brisbane
● Gold Coast
● Sydney
● Melbourne
● Adelaide
● Auckland
● Wellington
● Christchurch
● Napier
● New Plymouth
● Rotorua
● Hamilton

The vast number of these visits has been listed as “seeking potential sponsors”. Sufficient to say that few new sponsors for the stadium have been notified by DVML or DCC. Mr Hedderwick also seems keen on attending “conferences” around the world. There is no indication or record of any significant contributions that Mr Hedderwick has made to such conferences, nor of any benefit whatsoever to DVML for such attendances.

But it is in Mr Hedderwick’s spending that some light shines upon what appears to be a lavish lifestyle endorsed and approved by Mr Neville Frost and Mr Darren Burden. It is neither reasonable nor justifiable for expenditure down to chewing gum and shaving gear at one end of the spending paradigm, to the luxury of five-star hotels and pursuit of fine wines – an interest of Mr Hedderwick according to his Facebook page* – that really takes the cake.

Mr Hedderwick has visited many of the above destinations on several occasions. The list supplied by Mr Frost for Mr Hedderwick’s travel outside Dunedin numbers 55 trips. However, there appear to be numerous invoices missing from the almost 300 invoices already supplied. Some invoices are for trips not actually listed; and some invoices are for five-star hotel bills (including The Hilton, The Sheraton, and Radisson Resort Gold Coast for as much as $US300 per night in some instances) and rental cars, but no flights to get to the destination. Yet other invoices include expensive meals, blocks of chocolate, boy’s t-shirts, hat and gloves.

With the recent Dunedin City Council announcement of a review of the governance and management of DVML, it would well be advised, in the interests of Dunedin ratepayers, for the council to include a full investigation of all the DVML finances especially the excessive personal expenditure of the DVML management.

Contact for further information:
Bev Butler
Ph (03) 477 6861

[ends]

*The Facebook page is in dispute, only because Neville Frost went to the wrong page. We refer our readers to Hedderwick’s recent writing (February 2014) for International Association of Venue Managers (IAVM):

### venuenet.iavm.org Mon, Feb 10, 2014 07:15 PM
I am number 9344728427550
By Guy Hedderwick, AEVP
I am number 9344728427550 or at least that is what my loyalty rewards card at my local food store says I am. I presume that large scale food stores issue customers with loyalty cards so they can reward them for their loyalty. I also imagine that it is a great way to collect buying habit information of individual customers so they can target them with relevant advertising, know exactly what products customers buy, when they buy them, monitor their buying patterns and treat them as individuals. […] We live in a small village outside Adelaide […] I am a Million dollar customer […] I wonder how I would be treated as a million dollar customer if I walked into your business.
Venues, along with their teams and ticket providers, have huge amounts of personal data and should understand the emotional reasons guest [sic] attend their events. I don’t really expect my local food store to know me by name, but I do expect to be treated with the dignity “my spend” should demand. There is a huge discussion about big data and the use thereof. How understanding buying patterns and buyer behaviour can be used to sell tickets, merchandise, seat upgrade and improve the customer experience. […] People no longer buy products or services, they buy experiences. We sell the live experience but we need to understand people’s motivations for coming, their behaviours and touch points in order to make the experience truly personal. Then I will happily part with my hard earned dollars. At the end of the day, entertainment and sport (along with good wine) is what makes life worth living.
I am not number 9344728427550, I am Guy Hedderwick and I want to feel like a million dollar customer.
Read full article

● Guy Hedderwick at LinkdIn
● Guy Hedderwick at Twitter @GuyHedd
● Guy Hedderwick (GuyHedd) at Facebook

Guy Hedderwick is now General Manager of Arena Stadium Management Pty Ltd (ASM). He took up the appointment at the privately owned Adelaide Arena in 2013. ASM is Adelaide Arena’s new management company formed by joint owners Scouts Stadium Incorporated and Savethearena Pty Ltd. (Link)

Related Post and Comments:
5.3.14 Stadium: Mayor Cull stuck in his rut, ‘going forward’
4.3.14 Bev Butler: Guy Hedderwick’s departure package (LGOIMA)
24.1.14 Stadium: It came to pass… [stadium review]
30.11.13 DVML in disarray
14.11.11 DVML, Guy, wth ?
26.9.11 Donations – the quest for clarification
26.9.11 Private sector funding (donations) to stadium construction
12.9.11 Stadium: Private sector funding
9.2.11 DCC and DCHL, was there ever any doubt?
5.11.10 International connections
16.2.10 Owing $45.5 million in private sector funding
5.2.10 Commercial manager Guy Hedderwick on stadium sponsorship

For more, enter *dvml*, *hedderwick*, *burden*, *davies*, or *stadium* in the search box at right.

Posted by Elizabeth Kerr

29 Comments

Filed under Business, Concerts, Construction, CST, DCC, DCHL, Delta, Democracy, DVL, DVML, Economics, Events, Geography, Highlanders, Media, Name, New Zealand, ORFU, People, Politics, Project management, Property, Site, Sport, Stadiums, Tourism

This is all painfully familiar…

blog.svconline.com

The trials of the Phoenix Coyotes, the least popular hockey team in the NHL, offer a lesson in public debt and defeat.

### theatlantic.com Sep 7 2012, 2:37 PM ET
Business
If You Build It, They Might Not Come: The Risky Economics of Sports Stadiums
By Pat Garofalo and Travis Waldron
In June, the city council of Glendale, Arizona, decided to spend $324 million on the Phoenix Coyotes, an ice hockey team that plays in Glendale’s Jobing.com Arena. The team has been owned by the league itself since its former owner, Jerry Moyes, declared bankruptcy in 2009. For each of the past two seasons, Glendale has paid $25 million to the league to manage the Coyotes, even as the city faced millions of dollars in budget deficits. Now, Greg Jamison, who is also part of the organization that owns the NHL’s San Jose Sharks, is making a bid for the team, and would therefore be the beneficiary of the subsidies.

“Take whatever number the sports promoter says and move the decimal one place to the left. Divide it by ten. That’s a pretty good estimate of the actual economic impact.”

To put the deal in perspective, Glendale’s budget gap for 2012 is about $35 million. As the city voted to give a future Coyotes owner hundreds of millions of taxpayer dollars, it laid off 49 public workers, and even considered putting its city hall and police station up as collateral to obtain a loan, according to the Arizona Republic. (The latter plan was ultimately scrapped.) Overall, Glendale is not only on the hook for $15 million per year over two decades to a potential Coyotes owner, but also a $12 million annual debt payment for construction of its arena. In return, according to the Republic, the city receives a measly “$2.2 million in annual rent payments, ticket surcharges, sales taxes and other fees.” Even if the Coyotes were to dominate the league like no other in recent memory and return to the Stanley Cup Finals year after year, the city would still lose $9 million annually.

“It’s kind of a perverse argument that taxpayers should subsidize this because businesses depend on this deal that isn’t viable.”

This is an altogether too common problem in professional sports. Across the country, franchises are able to extract taxpayer funding to build and maintain private facilities, promising huge returns for the public in the form of economic development.
Read more

[Link supplied]

Posted by Elizabeth Kerr

25 Comments

Filed under Architecture, Business, Construction, Design, Economics, Events, Geography, Media, Project management, Property, Site, Sport, Stadiums, Urban design