Stop the Stadium

Sunday Star-Times, 12 October 2008, p. A4.

The Carisbrook Stadium Trust has received just $30 of private funding towards the construction of Dunedin’s proposed new Awatea St stadium - $55,499,970 short of its target.

The revelation comes in a series of emails between trust commercial manager Guy Hedderwick and anti-stadium lobbyist Bev Butler.

And in a sign trust bosses are uncomfortable with Butler’s continued questioning of its activities Hedderwick sought advice from chief executive Ewan Soper about how to deal with her - but sent his request to Butler by mistake: “Hi Ewan - At what point do I tell her to piss off - Regards Guy”.

A short time later Hedderwick sent Butler an email apologising for sending “an email in error” and asked her to “ignore it and/or delete it”. But Butler told the Sunday Star-Times she would do no such thing.

Contractors have been called to tender for construction contracts to build the stadium which trust chairman Malcolm Farry has always promised won’t cost more than $188 million - a figure that hasn’t changed during the past several years despite hikes in construction costs.

The Dunedin City Council has agreed, in principle, to fund $91.4m although $20m of that has to come from sources other than rates. The Otago Regional Council has agreed to conditionally contribute $37.5m and the Community Trust of Otago $10m.

Butler said the trust was responsible for finding the balance from private funding and she was simply trying to find out, on behalf of the public, how it intended to do so.

The email that prompted Hedderwick’s “piss off” comments asked: “Can you advise whether any money received or unconditionally promised from the private sector for such things as naming rights, corporate boxes, or ground rents are considered by the CST to be operating revenue or as donations to construction costs? Can you also confirm what proportion of this income will be redistributed to the Otago Rugby Football Union? Bearing in mind that the required level of private funding for construction is ($55.5million), how do you anticipate that this disparity of ($55,499,970) is to be met?

Soper, in an email to the Star-Times, said the trust always endeavoured to respond to public enquiries. “We sincerely regret the email sent to Ms Butler on 1 October… Our response fell below the standards we set ourselves and we apologised to her immediately. We have offered to meet with Ms Butler to go through her enquiries in detail, an offer which still stands.”

Soper said the trust has a private sector fundraising target of $45.5m towards the total construction budget for the new stadium and an estimated $10m of bridging finance.

“We will achieve our fundraising target from the sale of memberships, seating products and corporate suites ($41.5m) and sale of sponsorship products ($14m).”

But he conceded that, to date, they’d raised nothing. Only registrations of interest for membership products had been received totalling 40% of the target. “The trust is currently in the process of formalising these registrations into contractual agreements.”

He remained confident it would achieve the required 60% of the target by February.

“The trust is not relying on donations to meet the fundraising targets, but gratefully accepts donations from individuals who wish to express their support for the new Otago Stadium in this way. We have received $30 in donations to date.”

Otago Daily Times, 11 Oct 2008

Dunedin City Council reporter David Loughrey considers the complex web of relationships between major players in city projects. He asks whether it is possible to do business in Dunedin without having some sort of conflict of interest, and at what point it is time to step aside.

Relationships between businesspeople, politicians, and those appointed to trusts, committees and to head major projects in Dunedin are inevitable, insiders say….

The small size of the city means the pool of people with the expertise to run organisations is limited, and the potential for conflicts of interest high.

But the general consensus is while that can be managed, when pecuniary interest is involved, it is time to step aside.

And if there is any hint of a conflict of interest, put up your hand and make it clear before someone else does it for you.

The issue has made the news regularly recently, mostly in regards to the Awatea St stadium.

The problem: many of the players in the project are linked in a variety of ways.

It must be stressed that although stadium opponents have made much of some of these links, there is yet to be any official finding, or investigation, of illegal or unethical dealings.

But the links are many…. Such a complex web of connections raises the question of whether anything can be done in a city the size of Dunedin without suggestions of conflicts of interest, or, at the very least, creating that perception.

» Read more…

Otago Daily Times, 8 Oct 2008

The economic downturn and the declining New Zealand dollar might have some positive spin-offs for two aspects of the proposed Awatea St stadium.

Carisbrook Stadium Trust chief executive Ewan Soper suggested yesterday tenders from builders keen to get the stadium contract might become more competitive.

“I don’t know for sure, and I can only speculate, as anybody else can really, but if the construction industry has quietened down a bit then it may be a really good time for us to be going out to get a price.”…

Asked if there was a date when the trust would go to the market, Mr Soper said it was “very early days” and the design project team was still going through the registrations of interest requested from contractors and suppliers last month.

The other aspect of the stadium that might benefit from the global downturn is the cost of steel for the project.

Cr Dave Cull yesterday questioned whether the falling New Zealand dollar might push up steel prices already at historically high levels.

» Read more…

Otago Daily Times, 1 Oct 2008

Two Dunedin city councillors criticised for not attending a debate on Monday to tighten conditions surrounding the Awatea St stadium have responded their presence would not have changed the overall outcome.

Cr Dave Cull said after the meeting he was disappointed Crs Fliss Butcher and Teresa Stevenson had not “done their job” and stayed to vote for amendments introduced to put timeframes on conditions that must be met before the project could go ahead.

Cr Butcher said she would have abstained from voting if she had stayed….

Cr Stevenson said she had left the meeting to attend a health-related appointment, but there had been no indication of support for placing limits on the project during a preceding non-public part of the meeting….

» Read more…

Artbeat Column by Peter Entwisle, Port Daniel Press, www.portdanielpress.com

Opinion, Otago Daily Times, 29 Sep 2008

A model of the proposed Awatea Street stadium has been displayed which won’t end the dispute about this contentious project (ODT 23/9/08). Still, design changes after this will be “minor” so it’s time to review the design and other aspects relevant to the arts. I’ve said I think the project’s too much public money for too little public good. The points made here aren’t the whole story but are part of what tips the balance.

A large building on this prominent site is an opportunity to do something exceptional. It calls for a statement like the Sydney Opera House but this is far from that. The Caketin on Wellington’s waterfront is bolder and more dynamic. HOKSport’s Sydney Olympic stadium is much more exciting and they are the designers for this. Why is it so less successful?

The unkind have said it’s pitched to the limitations of the conservative, provincial client. Malcolm Farry seemed to confirm that by saying at the Sport in the City forum last year that he knew it wasn’t wonderful but reflected the very tight budget. Quality of design doesn’t depend on money but the uninformed often think it does. The explanation will deflect some critics. The less discerning will like the design because it seems an up-to-date version of the familiar, such as the old Caledonian gymnasium on the Anderson’s Bay Road. Limitations probably did play a part in the birth of this design.

The rectangular pitch and ground plan preclude the dynamism of circular or elliptical stadia. This isn’t helped by the addition of rectangular boxes to the west and east elevations or mitigated by the curving roof. A dated form is obscured but not redeemed by what reads as unintegrated clutter. The formerly interior roof trusses are now external but serve only to obscure the potentialities offered by the ETFE roofing.

This is a newish plastic recently come into its own for large-scale buildings. Its extraordinary, biomorphic possibilities are on conspicuous display in the Allianz Arena in Munich and the Aquatic Centre in Beijing. Here it might be so much glass and it’s where the challenge was lost. For the same money you could have had a building of radically innovative form. Instead we have klutz and clutter.

Since the stadium was first proposed the claims for it have been progressively watered-down while the acknowledged costs have risen. Early on it was going to have art exhibitions but it has no atmospheric or light control so top-end shows will still go to the public art gallery. This reduction has been back-handedly acknowledged by reference now to “expos” and the like. These are things like the trade shows catered for in the Edgar and Dunedin centres, both city-owned and the latter scheduled for expansion. Why would you want any more?

Then there’s concerts. At one time four a year were proposed each with crowds over 14,000. The peer reviewers thought that was unlikely so their revenues were moved to a less certain part of the budget. But Wellington-based nation-wide concert promoters Ian Magan and Paul Sprey have questioned even these projections. Mr Farry suggested on radio (21/9/08) that where there’s a will there might be a way. But another promoter, Murray C. Stott, of long New Zealand, including Dunedin experience, has given an overview of the changing entertainment industry and the detailed demographics and costs which show this is unlikely.

There has been a similar reduction over claims for conferences, shifting of seating and other fit out costs to other budgets to make the often-repeated projected completion cost of $188million more achievable. The now-proposed facility will suit fewer purposes and/or be more expensive to use. And this is without looking at sports codes’ usage where similar things are happening.

The peer reviewers were also concerned the true overall completion costs to the city and regional councils were not made clear in the figures considered by the city council on March 17 when it voted conditional support. A recent ODT report (23/9/08) had the Transportation Manager Don Hill acknowledging $1.5million in such additional expenditure, due to SH88’s further stadium-required realignment, which is probably an understatement. Other “extras” are still unacknowledged.

And at least some regional councillors managed to vote for the project under the illusion it would operate at an annual “profit”. This was regional councillor Gretchen Robertson’s statement recorded on 25 June. But the city council’s Chief Executive’s report of March 14 shows the facility would annually cost the council at least $9.7million.

The indifferent design, progressive loss of function, unacknowledged additional start-up costs and failure to grasp the true continuing burden are causes for general concern. But the arts, like others, have to also face the opportunity costs.

The city’s borrowed $91.4million for this wouldn’t be available for an 800 seat theatre, South Dunedin library - or anything else.

Letter to the Editor, Otago Daily Times, 25 Sep 2008

Having taken a prominent part in the administration of the initial Dunedin Indoor Stadium, I have been following the issue of the proposed Awatea Street stadium with much interest. In earlier days, we had little or no ratepayer funding support and had to contend with many of the issues now facing the new promoters.

Although I can boast a lifetime of enthusiastic support for the welfare of the Dunedin (and Otago and Southland) communities, it does appear to me that the present project is overambitious in terms of ratepayer funding. Any analysis wil show that the per capita ratepayer commitment towards initial capital funding - and perhaps even more important still maintenance expenditures - far exceeds that adopted in the northern centres, including Hamilton. And there will be significant drainage of available community trust gifting and container port earnings that could be diverted in other directions.

In addition, the potential attendance “catchment” for the combined Otago and Southland provinces falls well short of the conveniently located populations surrounding Christchurch, Wellington, Hamilton and Auckland. Furthermore, the temporarily accommodated tertiary education student population can at best provide only seasonal attendance potential. I could provide some comparative figures but will leave that to others.

The operating expenses will necessitate relatively high ticket prices and this will rule out attendance of many at the more high-profile functions. I concur with regional councillor Michael Deaker that the likely occupancy rate for this vast arena will be very low as compared, for example, with that of the Westpac Stadium in Wellington.

Dunedin (and Otago) have other much more pressing priorities for local-body funding support that this rather extravagant venture. I still believe Carisbrook could be suitably upgraded at a fraction of the cost and that the university/polytechnic authorities could make better use of the property now assembled. It is time to pull the plug now.

Jolyon Manning
Alexandra

Otago Daily Times, 23 Sep 2008

A new model of the planned Awatea St stadium went on show yesterday, and will be available soon for public viewing.

Carisbrook Stadium Trust development director Darren Burden said yesterday the model gave a sense of space and volume that paper plans could not easily convey.

Mr Burden said the designs were at a stage where a model showing what the stadium would look like could be built.

Any changes would be minor.

» Read more…

Press Release: Carisbrook Stadium Trust, 22 Sep 2008

A model of the new Otago Stadium will shortly go on public display showing the latest designs for the new multipurpose venue and surrounding developments.

Stadium Development Director Darren Burden said the physical model gave a fantastic sense of the space and volume of the facility which paper plans could not easily convey.

“Once people see the model in three dimensions they get a clear sense of just how good it will be.

Located in a fantastic harbour setting, the model shows what an impressive venue it is.

» Read more…

Otago Daily Times, 19 Sep 2008, p. 4.

By Chris Morris

A new model showing changes to the Awatea St stadium design will go on public display within days. The model, prepared with input from consultants involved in design work for the stadium, is expected to show updated details and design tweaks included in the planned facility….

Detailed explanations of design features included in the stadium also featured in a wide-ranging consultants’ briefing to councillors held in Dunedin yesterday, which the Otago Daily Times was not permitted to attend….

Mr Soper was joined at the briefing by 10 councillors and up to 14 consultant staff.

The discussion was a chance for councillors to hear detailed explanations of key design features, such as the stadium’s proposed multipurpose function and its ability to cater to a variety of events, from the experts, Mr Soper said….

Cr Dave Cull maintained “grave concerns” about the project’s guaranteed $188 million pricetag and its affordability, and said the next three to four months would be “critical”.

Nothing presented to councillors during yesterday’s three-hour briefing had alleviated those fears, he said, “but neither did I expect it to”.

“I’m still deeply concerned about that and the ongoing costs to the community,” he said.

» Read more…