Tag Archives: Stop the Stadium

Stadium costs $23.4144 million per annum

Received from Bev Butler
Thu, 26 Jun 2014 21:43:05 +1200

Cover note:
According to the latest DVL/DVML six monthly reports the debt is growing not reducing – that is a concern. The $146.6 million debt was passed over to DVL, many millions were poured into servicing the interest and capital repayments for this debt but even with that happening the combined short term/long term debt of DVML/DVL now stands at $157.6 million – $11 million more! The long term debt of $146.6 million has been reduced to $138.8 million but short term debt stands at $18.8 million. It is a major concern that the combined debt is growing not reducing – and this is during the stadium’s honeymoon period.

———

From: Bev Butler
To: Sue Bidrose; Sandy Graham; Kate Wilson; Richard Thomsom; Chris Staynes; John Bezett; Lee Vandervis; Hilary Calvert; Doug Hall; Andrew Whiley; Mike Lord; David Benson-Pope; Neville Peat; Andrew Noone; Jinty MacTavish; Dave Cull; Aaron Hawkins
CC: Calvin Oaten; Grant McKenzie
Subject: Stadium $23.4144 million per annum
Date: Thu, 26 Jun 2014 21:43:05 +1200

Dear Mayor Cull and Councillors

As a result of further discussions and more information obtained through further searching Council documents Calvin Oaten and I have updated the annual stadium costs which now stand at $23.4144 million. (See attached word document). No changes have been made to the spreadsheet I sent earlier which I prepared.
There are some costs which have not been included due to the difficulty in quantifying them to the accuracy of which I would be comfortable.

This $23.4144 million figure does not include any payments which may have not been fully transparent through the Council books.
By this I mean that I understand there were approaches by Darren Burden, former CEO of DVML, to obtain payments for bills which DVML were unable to pay but which another Council Department had shown some willingness to transfer their surplus unspent funds from that Department to DVML. In that particular case, I understand the transfer did not happen. However, I have no access to information as to whether this had occurred on previous occasions through other departments.

█ Also attached are Terry Wilson’s calculations coming from a different angle but which come to $23.1 million per annum. (See attached spreadsheet prepared by Terry Wilson).

Yours sincerely
Bev Butler

Downloads:
FB Stadium=Annual Ratepayer Costs=V2 (PDF, 9.47 KB)
Stadium Costs $23.4144 million per annum (DOC, 30.5 KB)

Related Posts and Comments:
2.6.14 Stadium costs ballpark at $21.337 million pa, Butler & Oaten
23.5.14 Stadium | DCC DAP 2014/15 ● Benson-Pope asserts himself
9.5.14 DCC Draft Annual Plan 2014/15 Submission by Bev Butler

Posted by Elizabeth Kerr

15 Comments

Filed under Business, Carisbrook, DCC, DCHL, Democracy, DVL, DVML, Economics, Name, New Zealand, People, Politics, Project management, Property, Site, Sport, Stadiums

Stadium costs ballpark at $21.337 million pa, Butler & Oaten

Received from Bev Butler
Monday, 2 June 2014 4:10 p.m.

Message: During the presentation of my submission on the draft annual plan I was asked by Council to produce the figures to back up my claim that the stadium was costing approximately $20 million per annum. David Benson-Pope made a general statement questioning whether the claims in my submission were correct – though he didn’t elaborate when I asked him. I have followed up the Council’s request and the final figure is $21.337 million.

Please note there is a huge disparity between what the DCC has published in the Draft Annual Plan 2014/15 and what can be shown by the DCC’s own figures that are very difficult to find and interpret. The ratepayers should not continue to be kept in the dark – the real costs are more than double what is being published.

This has now been sent to the Mayor and Councillors.

Regards
Bev

————————————

From: Bev Butler
To: Sue Bidrose; Sandy Graham; Kate Wilson; Richard Thomson; Chris Staynes; John Bezett; Lee Vandervis; Hilary Calvert; Doug Hall; Andrew Whiley; Mike Lord; David Benson-Pope; Neville Peat; Andrew Noone; Jinty MacTavish; Dave Cull; Aaron Hawkins
Cc: Calvin Oaten
Subject: Stadium Cost $21.337 million per annum
Date: Fri, 30 May 2014 22:49:43 +1200

Friday 30 May 2014

Dear Mayor Cull and Councillors

Attached is a Word document prepared by Calvin Oaten outlining the annual stadium costs. The final figure of $21.337 million is based on figures sourced from and cross-referenced with DCC/DVML/DVL/DCHL documents.
Also attached is a spreadsheet, containing four spreadsheets, prepared by Bev Butler, showing the treatment of the $146.6 million portion of the stadium debt.

Yours sincerely
Bev Butler

Explanatory Note for Calvin Oaten’s Word document:
I have expressly not mentioned nor quantified costs of what I would term ‘collateral’ effects of the Stadium Project. These of course are very real additional financial burdens to the citizens. These are: the realignment of SH88, the forgiving of considerable debt owed the city by the Otago Rugby Football Union, the costs of the purchase and sale of Carisbrook including the holding of same in the interim period. And of course, the ongoing operational losses of DVML’s operations. These particularly are proving to be a continual drag on the financial conscience of the ratepayer. It seems that if council cannot, or will not bite the bullet and raise the “pay to use” level to at least a break even figure then professional rugby is destined to have the last laugh at our expense. It is simply not fair.
I remain, without prejudice
Calvin Oaten

Explanatory Notes for Bev Butler’s spreadsheets:
1. Sheets 1 & 2 titled “$117.541m” and “$29.059m” respectively outline the calculations for the two tranches of stadium debt outlined in the DVL six-monthly report, dated 31 December 2013. This report states that the $146.6m stadium debt has been divided into two tranches of $117.541m and $29.059m. The $117.541m is for a term of 17 years and the $29.059m is for a term of ten years with a weighted average of 6.05%pa. In the calculations I have assumed monthly compounding periods and assumed the first payment(s) were made between 30 June 2013 and 31 December 2013. If the compounding period is shorter then there would be a small reduction in the payments.
Note that in the DVL six-monthly report it states that a mortgage has been issued to pay for the two tranches. This is the first time this has been mentioned in the DVL reports so it is assumed that the mortgage was issued sometime between the last DVL Annual Report (YE 30 June 2013) and the DVL six-monthly report (31 December 2013). There is also mention of a GSA having been signed. I assume this is a General Security Agreement to secure the payment of the debt in the event of the stadium folding or the rental payments not being met. I acknowledge that I am unsure about this as I have no further information. Perhaps the Council staff could clarify this aspect.

2. Sheets 3 & 4 titled “$146.6m monthly” and “$146.6m weekly” respectively outline the calculations for the stadium debt had [regular repayments been made] from the time the stadium opened. It appears from the calculations and the DVL Annual Reports that this was not happening. If it was then the debt would have reduced to approximately $134 million. The DVL long term debt as of 31 December 2013 stands at $141.090m. So up until the mortgage was secured, it appears the debt repayments were for interest only on the bonds (and an average annual capital injection of $2m) which were issued to pay for the stadium land and other stadium debt.

[ends]

Downloads:
Stadium Costs $21.337 million per annum (DOC, 30.2 KB)
Stadium debt calculations FINAL (XLS, 59.3 KB)

Related Posts and Comments:
9.5.14 DCC Draft Annual Plan 2014/15 Submission by Bev Butler
23.5.14 Stadium | DCC DAP 2014/15 ● Benson-Pope asserts himself

Posted by Elizabeth Kerr

56 Comments

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

Stadium: Edgar’s $1m donation (private sector fundraising)

Received from Bev Butler
Thursday, 10 April 2014 11:31 a.m.

From: Bev Butler
To: Eion Edgar [Forsyth Barr]
CC: Carlotte Henle [Kensington Swan]; Ian Telfer [Radio NZ]; Wilma McCorkindale [Fairfax News]; Debbie Jamieson [Southland Times]
Subject: Has Sir Eion Edgar paid his $1 million donation?
Date: Thu, 10 Apr 2014 11:30:19 +1200

Dear Sir Eion

You will recall the reports in The Mirror (10/7/13 – copied below) where you promised to honour your $1 million pledge initially reported in DScene (13/5/09).
As there had been no public reports of you having paid up I decided a few months ago to make an official request under LGOIMA to see if this money had been received. After repeated requests for the Dunedin City Council to respond to my request I have received no response. I thought before making a complaint to the Office of the Ombudsman I would ask you directly if you have paid up. It is in the public interest that this pledge is honoured as it formed part of the push for the decision for the stadium to go ahead. You may also recall the report on the front page of the ODT (March 2007) where Mr Malcolm Farry announced “very excitedly” that he had a one million dollar donation for stadium construction with another two “in the wings”. This was also reported in the National Business Review.

I have prepared a sequence of events to help clarify the situation:

1. Mr Malcolm Farry announces three $1m donations for stadium construction in March 2007.
2. The Marketing Bureau, commissioned by Carisbrook Stadium Trust, tells Dunedin City Council in Dec 2007 that naming rights are worth over $10m.
3. ODT reports Sir Eion Edgar becomes trustee of CST in August 2008.
4. Edgar and Farry announce Forsyth Barr have signed a Heads of Agreement in Jan 2009 and it is reported in NBR that a “substantial cheque” has been signed.
5. Council documents of cashflow projections, peer reviewed by PwC in Feb 2009, show that the naming rights payments have changed from full payment up front to two years in advance – “front-end loading” is the term for this.
6. Edgar announces in DScene in May 2009 he is making a $1m donation to the stadium.
7. Nine changes, as revealed in LGOIMA response from DVML, are made to the Forsyth Barr naming rights agreement then the contract is signed on 2 August 2011…the day after stadium opens. One of the final changes is from yearly in arrears to monthly in arrears.
8. Forsyth Barr makes their first payment on 1 September 2011. They are paying monthly in arrears.
9. Edgar, through Forsyth Barr lawyer in Oct 2012, denies having stated that Forsyth Barr had written a “substantial cheque”. The NBR journalist distinctly remembers the “substantial cheque” comment being made. However, no correction sought from NBR at the time.
10. The naming rights contract is no more than $5m as revealed in 2013 through LGOIMA request to DVML.
11. Edgar claims his $1m donation is part of the naming rights corporate contract in The Mirror in July 2013. The $1m donation still unpaid. None of the other three $1m donations for construction have been paid.
12. Michael Sidey is paying $1 million as part of the Forsyth Barr naming rights. I think what is happening is “double-counting”. Announcing million dollar donations for construction then two of these donations form part of the corporate contract for naming rights. Either [the] two $1 million payments are donations and the naming rights is only $3m, or the naming rights is $5m and the two [$1 million] donations don’t exist. You can’t have it both ways. This “double-counting” trick is what happened in the STS High Court injunction case where they claimed the $15m grant from Central Government was to offset the private funding shortfall AND was also used to offset the increase in land costs. This “double-counting” trick was established in the Court of Appeal.

So, Sir Eion, have you paid the $1 million donation initially pledged for construction of the stadium? If you have paid $1 million as part of the Forsyth Barr naming rights then good on you. That’s between you and the corporate contract signed by Forsyth Barr. I’m sure Forsyth Barr are happy about that. What is of interest to the public is have you paid the $1 million donation pledged in DScene?

As Chairman/Trustee of a number of Charitable Trusts you will be aware of the definition of a donation as recorded on the Charities Commission website. It bears no similarity to a corporate contract. I have copied Charlotte Henley, Forsyth Barr’s lawyer, into this email so she can confirm this definition, in case you still have any doubts.

I hereby reserve all my rights.

Yours sincerely
Bev Butler

Copied to other interest[ed] media and parties.

Queenstown Mirror 10.7.13 page 1 (detail)
Queenstown Mirror 10.7.13 page 2 (detail)

dscene-13-5-09-page-9-eion-edgar-c3### DScene 13 May 2009
The Insider: Big questions answered
Mr Generous isn’t slowing down

Winter Games NZ chairman Eion Edgar | Interviewed by Ryan Keen
COMMUNITY-MINDED Queenstown-based businessman Eion Edgar, who retired as New Zealand Olympic Committee president last week and left a $1 million donation, on his support for knighthoods, backing Blis and why he’s not slowing down.
#bookmark page 9 | DScene 13.5.09 page 9 (merge)

[ends]

Related Posts and Comments:
30.7.13 Stadium: Accountability, paper trail leads unavoidably to NEWS
18.7.13 ODT won’t touch Fairfax story
10.7.13 Stadium: Edgar will honour $1M personal pledge to project
3.7.13 [Pulled!] Call for Dunedin stadium cash
24.12.12 A Christmas Tale
7.6.12 Stadium: Forsyth Barr naming rights
6.7.09 Eion Edgar on ‘stadium haters’

Posted by Elizabeth Kerr

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Stadium: Edgar will honour $1M personal pledge to project

KUDOS to Dunedin’s Bev Butler for putting the pressure on !!!

Thanks to Wilma McCorkindale (Fairfax) for professional follow-up

Queenstown Mirror 10.7.13 (page 1)

Queenstown Mirror 10.7.13 (page 1 detail)Queenstown Mirror 10.7.13 (page 2 detail)

#bookmark page 1
#bookmark page 2

DScene 13.5.09 (page 9) Eion Edgar c3### DScene 13 May 2009
The Insider: Big questions answered
Mr Generous isn’t slowing down
Winter Games NZ chairman Eion Edgar | Interviewed by Ryan Keen
COMMUNITY-MINDED Queenstown-based businessman Eion Edgar, who retired as New Zealand Olympic Committee president last week and left a $1 million donation, on his support for knighthoods, backing Blis and why he’s not slowing down. #bookmark page 9

DScene 13.5.09 (page 9) merge

Related Post and Comments:
3.7.13 [Pulled!] Call for Dunedin stadium cash

Posted by Elizabeth Kerr

10 Comments

Filed under Architecture, Business, Construction, CST, DCC, DCHL, DVL, DVML, Economics, Geography, Hot air, Media, Name, ORFU, People, Politics, Project management, Property, Site, Sport, Stadiums, STS

Who? 2010 electioneering

References supplied.

Blog entry: Dave Cull for Dunedin City Mayor
Monday, August 23, 2010 at 2:09 PM
TAKING OUR FUTURE BACK
By Dave Cull

Dunedin is wonderful city, with a fantastic future. But right now that future is vulnerable: vulnerable economically, environmentally and socially. Dunedin’s community has never been more disillusioned with how Council makes decisions, how it listens, or not, to the community, how Council takes responsibility, or not, for major spending decisions with long-term consequences. These are consequences that include maxing out Councils [sic] and Council company debt, so that the companies may not be able to pay expected dividends to the ratepayers in the next few years! It is that bad.

The challenges ahead are considerable. But we can achieve that fantastic future. We have to. We can achieve it if we replace secrecy with transparent processes and provide responsible leadership that listens and is up-front with the community about debt and costs. If we do that we can turn disillusion into a shared and inclusive vision for the city.

So imagine what YOU want Dunedin to be like in 20 years.

Imagine Dunedin with:
• a thriving economy featuring high value jobs and businesses that keep families living here
• suburbs of well-built, healthy houses
• streets of beautiful, rejuvenated heritage buildings being put to productive use
• renewable resources being utilized for lower cost energy.
• measures already taken to address climate change and peak oil
• well maintained civic amenities not saddled by a mountain of debt that ratepayers have to repay
• top notch infrastructure including comprehensive Broadband coverage everywhere
• a smooth coordinated public transport system and cycle and pedestrian network
• an accessible and well-protected surrounding environment full of nature’s treasures

Previous Councils and this current one, have not tried to imagine such a future and not planned to achieve it. They have ticked the boxes of bland Council vision statements, reacted to pet ideas dished up by special interest groups, and lurched from one to the next, piling a huge debt on all our shoulders in the process. At the same time some of our suburbs are mouldering from neglect; our digital infrastructure is falling behind other NZ communities; jobs are ebbing away and families are leaving for greener pastures. I and my team want to help turn that all around.
Read more

****

During the 2010 Dunedin Mayoral race the local newspaper ran this:

### ODT Online Tue, 7 Sep 2010
Mayoral Profile: Dave Cull
By David Loughrey
Dunedin city councillor Dave Cull is about to end his first term on the local authority, and has put his hand up for the council’s top job. With nine candidates, including himself, on his Greater Dunedin ticket, success could see him heading a group with a majority, on a council more recently made up of 15 independents. But he says that would be a good thing for a city that needs a “collegial” approach to reining in debt, and attracting business and people to Dunedin.

Dave Cull
Age: 60.
Family/marital status: Married, two daughters.
Occupation: Writer.
Council experience: One term as councillor.
Running for: Mayor and council.

Why are you standing?
I’m standing because when I put my hand up for council in 2007, I realised it was going to be something I was either going to be in for the long haul or not, so I’m in it for the long haul.
I’m standing for the mayoralty because I see the need for far more engaging and inclusive leadership than is being shown at the moment.

Tell me then, how you would go about engaging and including.
Well I think the context is that the current council and mayor …

Of which you’re one …
… of which I’m one, but the majority has not engaged genuinely, has not listened genuinely to the public, and has, worse than that, not got a cohesive, connected view of the projects the council is involved in. They tend to be isolated from one another, and the impact on one another is not fully appreciated till the negatives hit, I suppose. So I see a need for developing a much more future-focused vision for the city that looks at everything in a connected way.
Read more

****

Blog entry: Dave Cull for Dunedin City Mayor
Tuesday, September 14, 2010 at 2:02 PM
Ratepayers Association Questionnaire
By Dave Cull

The Greater Dunedin Team Answers Ratepayers Association Questions.

Greater Dunedin candidates declined to answer the Ratepayers Assoc questionnaire, the answers to which are to be published in D-Scene. Framed as either/or questions, the requested yes/no answers would oversimplify the issues with many of the questions. More importantly Ratepayers chairperson Lyndon Weggery acknowledged the Association would edit and “analyse” longer answers and distribute the results privately to Ratepayers Association and ex-Stop the Stadium members. We have no confidence that would be done in good faith. Mr Weggery (also on the committee of ex-STS) has signed STS newsletters containing untrue claims and misrepresentations about Greater Dunedin mayoral candidate Dave Cull’s views on the new stadium, and endorsing another candidate. Dishonesty and partisan commentary are incompatible with a purportedly independent survey.

However all the Greater Dunedin team recognise voters’ interest in our views and their right to hear them expressed publicly. We wholeheartedly promote transparency and also believe our views and positions on most subjects, while diverse, probably resonate with most of the membership of both the Ratepayers Association and what was Stop the Stadium. To that end we have each fully answered the questions posed by the ratepayers Association and posted them on our website: http://www.greaterdunedin.co.nz/. We encourage readers to read them there.
Greater Dunedin’s aim is to engage with and serve the interests and views of the whole Dunedin community. We welcome feedback, ideas, concerns and comments from all.

Following are the Ratepayers Association questions and my answers.
Continues at greaterdunedin.blogspot

Posted by Elizabeth Kerr

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Filed under Business, DCC, DCHL, Economics, Hot air, Media, Name, People, Politics, Project management, Stadiums

DScene: Call for full inquiry into stadium project

Register to read DScene online at
http://fairfaxmedia.newspaperdirect.com/

### DScene 7.3.12
Open the books (front page)
Anti-stadium campaigner Bev Butler says an audit into the Forsyth Barr Stadium cost should just be the start; she is calling on Dunedin City Council to hold a full inquiry into the project. See page 3. #bookmark

Stadium inquiry demanded (page 3)
By Wilma McCorkindale
Stadium opponent Bev Butler has urged Local Government Minister Nick Smith to initiate a full inquiry into the project. Butler believed an inquiry would prove it simply too expensive to maintain empty and unused. Confidential documents obtained through the Local Government Official Information and Meetings Act (LGOIMA) solidify Butler’s determination. She was heartened by the Dunedin City Council decision two weeks ago to commission a review of stadium completion figures by a PricewaterhouseCoopers forensic auditing team. But that wasn’t enough, she said.
{continues} #bookmark

****

UPDATED 7.3.12 at 7:20 pm
Smell the Delta rat…

{storyline as published today at DScene is under review -Eds}
Delta pursues damages from councillor (page 5)
By Wilma McCorkindale #bookmark

Refer to the following news stories at ODT Online:
14.9.10 Swings hoping to sway voters
16.9.10 Candidate’s advertising sign sparks power cut
18.9.10 Candidates’ sign sites pose risks

UPDATED 8.3.12 at 7:05 pm
—— Forwarded Message
From: Lee Vandervis
Date: Thu, 08 Mar 2012 18:29:15 +1300
To: EditorDscene , “Wilma McCorkindale (STL)”
Conversation: Delta pursues damages from Councillor – misinformation
Subject: Delta pursues damages from Councillor – misinformation

Dear Mike and Wilma,

Delta pursues damages from Councillor – misinformation
I was very disappointed in your 7/3/12 article ‘Delta pursues damages from Councillor’, because of its judgemental presentation of untruths.
The damage done to a power cable by me is only alleged at this point, and did not happen last September as claimed but 18 months ago prior to the last local body election.
The claims that I personally hit a steel peg that pierced the cable and that it exploded are false, as the more accurate ODT articles on the issue in 2010 made clear.
The claim that Delta had heard nothing from me is false as I have verbally invited Delta to produce their evidence when they have rung.
Also false is the claim that my election sign was erected about 20 metres south of the Council designated site, as 2010 ODT photographs show.
If DScene staff had read relevant 2010 ODT reports, or told me what was claimed in this article, this belated misinformation could have been avoided.”

In the interests of accuracy and on-going good relations, I would appreciate you running this letter with similar prominence to the offending article in next week’s Dscene.

Regards,
Cr. Lee Vandervis

—— End of Forwarded Message

Posted by Elizabeth Kerr

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D Scene: Dunedin City Council housekeeping

### D Scene 28-7-10

Register to read D Scene online at http://fairfaxmedia.newspaperdirect.com/

Call to liquidate STS (page 3)
By Wilma McCorkindale
[In brief] Dunedin City Council (DCC) has called for the last rites to be said over Stop The Stadium (STS), and applied to have the incorporated society liquidated. The DCC said STS was insolvent, and unable to pay the remaining $9,860.91 court costs owing after STS lost stadium legal battles between the two organisations last year. The application is due to be heard on August 30. STS chairman Dave Witherow said there was nothing fair about the move and STS would defend the action.
{continues} #bookmark

Post by Elizabeth Kerr

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