Stop the Stadium

http://www.radiosport.co.nz/SportsNews/spspo/Detail.aspx?id=148884

2/12/2008 7:16 a.m.

The financial crisis could prove the downfall for Dunedin’s proposed new stadium with private funding harder to find

Funding for the new stadium in Dunedin is in doubt but the Carisbrook Stadium Trust is still ruling out a refit of the House of Pain as an option.

The financial crisis is making private funding harder to find and there is now doubt over an application for $10 million with the Community Trust of Otago, with the Trust losing 18 million dollars in six months on overseas investments.

Carisbrook Stadium Trust chief executive Ewan Soper says a refit of Carisbrook is not an option and they can not bring down the cost of construction by 10 to 15 million dollars.

Soper says they are now confident they can build the stadium for the cost they have outlined and they now need to work on the funding options.

The Trust needs to confirm 60 percent of 55.5 million in private funding by February 2 to go ahead with the project. Soper says they are less confident they will meet that funding deadline. He says the councils have made it clear that the Community Trust support is pivotal and there has been some talk within the city and regional councils about suspending the project until the economic conditions are more friendly.

Scene, 17 October 2008

Stadium blitz test for backers

HAD enough of Dunedin’s protracted stadium debate? Yes? Then we’ve got bad news – stadium ads are coming to the back of a bus near you.

The Carisbrook Stadium Trust – under pressure to meet private funding thresholds to ensure public funding support, including almost $80 million from the Dunedin City Council – is about to go ballistic with marketing.

Stadium fever won’t just hit town but beyond, too – remember, this is now The Otago Stadium.

That’s the new brand name for the whole shebang until an overall naming rights sponsor is secured. Then it’ll become something else – Ngai Tahu Arena perhaps, or Kiwi Super Fund Park Kidding.

The trust won’t talk about these negotiations other than to say it’s in “advanced talks”.

Despite it’s comforting noises about being on track – it has registrations of interest for 49 per cent of the required $45.5 million in private funding – there must be sweat on a few brows.

As trust boss Ewan Soper says: “Now is the time for Otago and Dunedin to get behind this project.”

Translation: If you want it built, stick your blimmin’ hands in your pockets and commit to corporate boxes, memberships and sponsorships.

Soper’s right – now is a critical time. The Otago Stadium lives or dies come February when the council decides whether it’s satisfied with private funding commitments.

But that’s just one threshold – don’t forget the stadium’s total maximum cost mustn’t exceed $188m and other funders must come to the party.

Now’s the hour Otago – want it or not?

Otago Daily Times, 14 Oct 2008

With its February deadline fast approaching, the Carisbrook Stadium Trust is confident it can achieve the minimum 60% of private-sector funding required to gain final approval to build the stadium.

Formal contracts were sent to interested parties last Friday, and as of yesterday, 20% had been returned, equating to $22.2 million or 49% of the target, trust chief executive Ewan Soper said.

On September 29, the Dunedin City Council set a target of 60% of public funding to be achieved before February for the project to continue….

Seating and membership products would bring in $41.5 million, and the sale of sponsorship products, $14 million….

Contrary to other media reports, donations, although welcome, were not part of the fundraising strategy.

Only $30 in donations had been received by the trust during the last financial year….

Mr Soper said the stadium would act as a “catalyst” for development in the city despite the economic conditions.

Who is paying?

The $188 million budget for the stadium is expected to be funded by:

• Otago Regional Council: $37.5million.
• Community Trust of Otago: $10 million.
• University of Otago: $10 million.
• Dunedin City Council: $85 million.
• Private sector: $45.5 million.

» Read more…

Related:
» Carisbrook stadium: Funding Row prompts rude email response
» Email embarrasses stadium trust

Otago Daily Times, 13 Oct 2008

Carisbrook Stadium Trust officials have been left red-faced after an exchange of rude emails with Dunedin stadium opponent Bev Butler was made public.

In the emails, Ms Butler, president of the Stop the Stadium group, repeatedly questioned trust commercial manager Guy Hedderwick over private funding arrangements for the planned $188 million Awatea St stadium.

After several exchanges, a frustrated Mr Hedderwick attempted to forward one of Ms Butler’s emails to trust chief executive Ewan Soper, along with the comment: “Hi Ewan - At what point do I tell her to piss off? Regards, Guy.”

Unfortunately, Mr Hedderwick hit the “reply” button rather than “forward”, meaning the message was relayed back to Ms Butler by mistake….

The exchange - which occurred almost two weeks ago - also revealed that the Carisbrook trust has so far received just $30 in private funding donations. The trust’s target for private sector funding is $55.5 million. Ms Butler sent copies of the emails to the Otago Daily Times yesterday….

Ms Butler told the ODT the exchange highlighted the trust’s “arrogance and attitude towards genuine concerns” members of the public held about the stadium….

She was also concerned to learn the trust had almost no paid-up donations from the private sector, and was instead relying on registrations of interest for corporate products - such as memberships, corporate suites and sponsorship deals.

Her own anti-stadium organisation had received more support, including individual donations of more than $1000, she claimed…

» Read more…

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, 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, 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…