February 2009 Resolution
The Council's role to date has been to continue to partially fund investigation into the construction of a 30,000 seat covered stadium. On 9 February 2009 further resolutions, as detailed below, were passed for inclusion in the Draft Community Plan.
Following the receipt of a guaranteed minimum price tender and two annual/community plan consultations, the Council has decided to proceed with the project under the terms of its earlier resolutions.
On 9 February 2009 the Council confirmed its commitment to the Awatea Street multi-purpose stadium. The resolutions taken at this meeting are shown below in their entirety and contain the conditions attached to this decision. Before the stadium proceeds, the project must meet various conditions, including ensuring planning issues are resolved and that extra money is found to meet a shortfall in private sector funding. This needs to be in the form of a grant,a limited recourse loan or a combination of these funding methods. These conditions are described in Resolutions 6 and 7.
The Carisbrook Stadium Trust has also been instructed to find either savings in the construction budget or additional funding.
In supporting construction of a new stadium, the Council aims to strengthen the city and region's future position as centre for national and international sports competition and events.The stadium would be used for a wide variety of activities, such as rugby matches, conferences and concerts.
The resolutions made on 9 February 2009 replace resolutions made by the Council at meetings in June 2007, March 2008 and September 2008, which had previously laid out conditions and recommendations for further development of the stadium proposal, funding and reducing cost to ratepayers.
Resolutions passed at a meeting of the Dunedin City Council held on Monday, 9 February 2009:
Condition 1
That Council notes that in the public excluded part of this meeting:
- the reports and attachments provided therein were received; and
- the information contained in the reports and attachments remain confidential.
Condition 2
That the report of the Chief Executive together with the various attachments thereto is received.
Condition 3
That the report from the Stakeholders Group dated 2 February 2009 and the attachments be received.
Condition 4
That the report from the Council's General Manager Finance and Corporate Support on the Modelled Financial Implications for the Council is received.
Condition 5
The Council notes:
- that the bridging loan requirement for DCC on 1 July 2011 has increased from$19.2 million to $42.6 million to offset the present shortfall in capital funding from the private sector due to timing changes, and that this loan balance is expected to fall to $24.1 million by 30 June 2012.
- the shortfall in capital funding of $3 million from the Otago Community Trust.
- the current lack of success in reducing the Council contribution by $20 million but that the cost to the ratepayer as consulted in the 2008/09 Annual Plan has not increased because of the reduction in interest rates. The funding model shows that the average value residential property ($291,000) would pay $66per annum, the average non-residential property ($968,000) will pay $664 per annum and the average farmland property ($710,000) will pay $145 per annum which are the same figures as are in the 2008/09 Annual Plan.
- the ratepayers' contribution will cover the $5 million shortfall in DCHL dividends for the duration of the 20 year loan period to pay off the stadium loan.
Condition 6
In relation to the Council resolutions of 17 March 2008 as amended on 29September 2008, the Council notes as follows:
- the total net cost of the project is now $198 million and that the increase is primarily due to increased land costs and lack of offsets from the sale of Carisbrook. This includes a budget of $165.4 million for construction costs that is achievable based on the guaranteed maximum price (GMP) and contingency information received to date.
- resolutions 2 (a) and (b) relating to property purchases have been previously confirmed.
- that a public tender process to obtain a GMP in accordance with the Council's procurement process has been achieved.
- a contract has been entered into with the University of Otago in relation to the land it is to purchase and written confirmation has been given by the University of Otago as to the facilities that are proposed to be built on the land.
- a decision on the Plan Change was delivered by Commissioners on 10 January2009 and the appeal period ends on 23 February 2009.
- a service level deed has been completed.
- confirmation of Otago Regional Council funding of not less than $37.5 million is awaited.
- agreements negotiated by the Dunedin City Council with the Otago Rugby Football Union for the sale and purchase of the Union's property assets have been completed.
- the Council has sighted and approved the occupation and revenue agreements between the CST and the Otago Rugby Football Union noting some revision may be required.
- that 51.1% of the private funding target of $45.5 million has been confirmed and it is noted that, pending agreements, if they are confirmed, then the minimum of 60% of the private sector funding target of $45.5 million would be achieved and it is noted that the CST have advised that there is an additional $15 million required for the servicing of bridging finance.
- notes that the Rates and Funding Working Party have been unable to date to identify and confirm a source for the $20 million reduction in ratepayer capital cost.
- An application was made to the Otago Community Trust for funding of $10 million and advice has been received that a grant of $7 million has been made available.
Condition 7
That the Dunedin City Council commits to the Awatea Street stadium project on the following terms and conditions:
- the confirmation of Otago Regional Council funding of not less than $37.5 million.
- a satisfactory conclusion to the planning process and approval of a Plan Change by the Courts.
- the Rates and Funding Working Party to continue 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 that do not have a direct cost to ratepayers.
- discussion and agreement with the ORC occurs on the sharing of any external funding which reduces ratepayer costs.
- that Council retains the funding line in the draft LTCCP for the project.
- that a funding source to meet the $15 million shortfall in private sector funding be confirmed.
- that the DCC instructs the CST to continue to investigate ways by either:
- savings on the GMP budget.
- additional funding over and above the target of $45.5 million.
- to address the $3 million shortfall of funding from the target of $10 million,from the Otago Community Trust.
- that where any of the above resolutions conflict or are inconsistent with any prior resolutions of the Council the above resolutions shall prevail.
Last reviewed: 05 Oct 2009 9:44am
