17 March Resolution

The effect of this resolution, taken as a whole, is to permit the project to continue and, by placing milestones along the way, still provide for the possibility that if some or all of the risks that have been identified materialise, the Council can still exit the project.

So you can get a full understanding of every element of the resolution, it is reproduced in full below.

Resolution:

"That the Dunedin City Council commits to the Awatea Street Stadium project on the following terms and conditions":

Condition one

The project cost is confirmed at not exceeding $188 million. The Council's share of the projected budget cost from 1 July 2008 is a further $79.9 million made up of $73.5 million plus $6.4 million as a depreciation allowance. It is noted that the sum of $11.5 million was committed in the current year to 30 June 2008 making a total Council commitment of $91.4 million to the project.

Status at 31 August 2008

The DCC remains committed to a maximum project cost of $188 million.

Condition two

The Mayor in consultation with the Deputy Mayor and CEO confirm within seven working days that property contracts are satisfactory in all respects and will enable the Council to meet its commitments arising from these resolutions.
The Council notes that in two property transactions there are conditions imposed by the vendors which need to be removed because the Council has no power to consider them under the provisions of the Local Government Act 2002.

Status at 31 August 2008

Five properties have been settled. Further settlements will occur on 31 October 2008 and 31 October 2009. The payments are for a mixture of freehold title, ground leases, tenancy terminations and relocation costs.

Condition three

That a public tender process is entered into with a guaranteed maximum price for construction.

Status at 31 August 2008

Preliminary design was completed in late July 2008.

The project manager has been selected (Arrow International). Arrow will direct work on the detailed design to the extent required to enable tenderers to respond with a guaranteed maximum price by Christmas 2008.

Condition four

That a contract is entered into with the University of Otago in relation to the land it is to purchase and written confirmation be given by the University of Otago as to the facilities that are proposed to be built on the land.

Status at 31 August 2008

A development agreement with the University of Otago, in relation to the land it is to purchase, has been through two drafts and is progressing satisfactorily.

Condition five

A satisfactory conclusion to the planning process and adoption of a Plan Change.

Status at 31 August 2008

Notification of the proposed Plan Change attracted over 200 submissions. The first day of hearings is to be 17 November 2008 and the release of the Commissioner's decisions is expected by the end of 2008.

Condition six

That a Service Level Agreement, based on the draft that is included in the 'public excluded' part of the agenda of this meeting, is signed as soon as possible and that a project control group will be established in accordance with that agreement and that the Council will be represented by personnel with significant experience in construction, project management and financial marketing. It is noted that the Service Level Agreement will provide inter alia that the Trust reports regularly to the Finance and Strategy Committee.

Status at 31 August 2008

A Deed of Agreement setting out the governance and management of the project is complete except for a small number of minor matters. It will provide for all the requirements of this resolution, and others.

Condition seven

The acceptance by the Council of a tender price is subject to:

Confirmation of Otago Regional Council funding of not less than $37.5 million
The sighting and approval of agreements between the Otago Rugby Football Union and the Carisbrook Stadium Trust for the sale and purchase of the Union's property assets.
The sighting and approval of occupation and revenue agreements between the Carisbrook Stadium Trust and the Otago Rugby Football Union.
The Council being satisfied as to the progress made to achieve the private sector funding target of $45.5 million and any further funds required for the servicing of any bridging finance arranged by the Carisbrook Stadium Trust
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 and in that regard regular reports will be made available to the Finance and Strategy Committee

Status at 31 August 2008

The Otago Regional Council has confirmed its funding of up to $37.5 million, with conditions; all of which are expected to be met.
The Otago Rugby Football Union and the Carisbrook Stadium Trust are in discussion about the sale and purchase of the Union's property assets.
The Otago Rugby Football Union and the Carisbrook Stadium Trust are near agreement on the occupation and revenue arrangements for the new stadium.
The Carisbrook Stadium Trust is preparing to issue conditional contracts to prospective private sector purchaser's suites and long term seats. The Trust considers the response to be satisfactory. Separately, negotiation of naming rights continue with a number of interested parties.
The Rates and Funding Working Party continues to explore avenues that, collectively, will raise $20 million.

Condition eight

The Council will receive written confirmation from the Community Trust of Otago (as set out in the Council's cashflow information) that they will provide funding in accordance with the following programme:

Community Trust of Otago

31 Mar 2009: $2.5 million
31 Dec 2009: $2.5 million
30 Sep 2010: $2.5 million
30 Apr 2011: $2.5 million

Total: $10 million

Status at 31 August 2008

The Community Trust of Otago will confirm the amounts and timelines following receipt and consideration of the funding application. No issues are anticipated.