Stadium cost and who's paying?
This page explains who is going to foot the bill for the Awatea Street Stadium and how it may affect you.
How much is the stadium going to cost?
The Council continues to take the view that the project must not exceed $188 million. All of the proposed sources of funds are predicated on that basic requirement. While the Carisbrook Stadium Trust has advised on difficulties in securing land at the expected values, it nevertheless believes, and has advised the Council accordingly, that $188 million is expected to be funded as follows:
- Otago Regional Council: $37.5 million
- Community Trust of Otago: $10.0 million
- University of Otago: $10.0 million
- Dunedin City Council: $85.0 million
- Private Sector Funding: $45.5 million
- Total: $188.0 million
An additional $6.4 million from Dunedin City Council will be set aside as a capital main-tenance fund.
Resolution 7(e) requires the Rates and Funding Working Party to continue identifying ways of reducing the ratepayers' contributions by $20 million.
Who is going to own the stadium?
Dunedin City Council will own the stadim directly up to its completion. It will then be transferred into the ownership of a 100% Council controlled organisation (CCO). The Council believes that the management of the stadium by a CCO in a business-like manner will better ensure its commercial success, at the same time ensuring that the benefits of public ownership are retained. This will remove the debt servicing costs from being a direct charge on ratepayers, but it will have the effect of reducing the dividends from the companies.
The proposal in the 2008/09 Draft Annual Plan does not specify how the stadium would be owned and operated. It simply calculated the cost to the ratepayer of servicing the debt. This new proposal, that a CCO own and operate the stadium, is compared to direct Council ownership in Tables 1 and 2.
How will it affect my rates?
For residential ratepayers, it is estimated that the average value residential property, which is valued at $290,000, would pay $66 per annum. Table 1 below sets out the rates payable under this proposal and compares those amounts with the amount payable if the stadium was held in direct Council ownership.
Table 1: Rates on individual properties, direct Council ownership compared to CCO ownership
On average, over the ten years from 2008/9 to 20017/18, the ownership and operation of the stadium by a CCO reduces the charge on ratepayers by 25%. The second table shows the total amount of rates saved by using a Council controlled organisation.
Table 2: Total Council rates, direct Council ownership compared to CCO ownership.
Last reviewed: 23 Sep 2008 4:42pm
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