Appendix C

Inquiry into Dunedin City Council and Otago Regional Council's funding of the proposed stadium.

RESOLUTIONS OF DUNEDIN CITY COUNCIL CONCERNING PROPOSED STADIUM

Meeting on 28 February and 1 March 2007:

  1. That the Council consults its community on option 1A [Awatea Street stadium with roof] (noting 1B [Awatea Street stadium without roof] is the fallback position) of the Carisbrook Stadium Trust (CST) proposals noting:
    1. The DCC’s share of funding for:
      • option 1A is $91.359 million
      • option 1B is $69.711 million
    2. The community benefits for these options as set out on page 154 of the CST document “Carisbrook Opportunity Dunedin Master Plan and Feasibility Report” 19 February 2007.
  2. That the Council assumes other parties and the private sector will meet their share as outlined by the Carisbrook Stadium Trust for options 1A and 1B.
  3. That the Council agrees/or amends the Community Benefit Assessment on page 154 of the CST document “Carisbrook Opportunity Dunedin Master Plan and Feasibility Report” 19 February 2007.
  4. a) That the Chief Executive works with the CST to confirm the $800,000 (plus GST) working capital required in 2006/07 and the Chief Executive be requested to identify how this could be funded in the 2006/07 financial year.

    b) That the Council includes funding of the preferred option 1A in the 2007/08 draft Annual Plan, noting that if option 1B was preferred after consultation, the Community Plan would be amended.

    c) That the Council forms a Working Party to explore additional funding options, including government funding, to reduce rating requirements and the funding method, with the results of its work to be available to the Annual Plan Hearings Committee.
  5. That the Council notes this is a decision that triggers the decision-making requirements in the relevant section of the Local Government Act 2002.
  6. That the Council’s Logan Park Development Plan Working Party and General Manager Community Life meet with the Carisbrook Stadium Trust to identify the implications, synergies and timing issues that arise from option 1A and 1B on the Logan Park development project.
  7. That the Council notes the majority of funding as proposed is coming from the public sector, with the DCC being the major public contributor, and as such the ultimate ownership of a new stadium should vest in the Council on behalf of the community.
  8. That before the Council makes a final commitment it will require as far as practicable the following:
    1. A public tender process with a guaranteed maximum price for construction contracts.
    2. Security as to other funders
    3. A contract with the University of Otago
    4. Confirmation that the turf will grow successfully under option 1A
    5. That physical constraints with regard to site suitability and roading and parking requirements are satisfied
    6. A peer review of the quantity surveyors’ estimates and other technical reports
    7. A peer review of the robustness of the ongoing estimates for revenues and expenses.

Meeting on 11 June 2007:

  1. a) That the proposed ratepayer funding for the Stadium Project is not acceptable at $91.4 million and needs to be reduced before the Council makes a final commitment.

    b) That the Stadium Funding Working Party continues to identify firm opportunities to significantly reduce the ratepayer funded requirement and reports back to the Finance and Strategy Committee on progress.
  2. That Council includes in 2007/08 up to $11.5 million (and the balance of the Project cost of $79.9 million in subsequent years) to enable the Carisbrook Stadium Trust to continue investigations and design work into a covered Stadium at Awatea Street (the Project) under the terms and conditions set out in Resolutions 7 and 8 of the Council meeting of 28 February 2007 as follows:
    1. "That the Council notes the majority of funding as proposed is coming from the public sector, with the DCC being the major public contributor, and as such the ultimate ownership of a new stadium should vest in the Council on behalf of the community.
    2. That before the Council makes a final commitment it will require as far as practicable the following:
      1. A public tender process with a guaranteed maximum price for construction contracts.
      2. Security as to other funders
      3. A contract with the University of Otago
      4. Confirmation that the turf will grow successfully under option 1A
      5. That physical constraints with regard to site suitability and roading and parking requirements are satisfied
      6. A peer review of the quantity surveyors’ estimates and other technical reports
      7. A peer review of the robustness of the ongoing estimates for revenues and expenses."
  3. That of the $11.5 million, $5.6 million (being $2.6 million provided by September 2007 and the balance by 31 December 2007) is dedicated to investigative work to confirm, or otherwise, the viability of the Project by 31 December 2007, subject to:
    1. The provision of six-weekly updates to the Finance and Strategy Committee on planning, engineering, contractors, timing, pricing estimates, funding, risks and any other relevant issues.
    2. Continued updates on the obligations in clause 8 of the Council’s resolution passed at its meeting on 28 February 2007.
    3. Each report making recommendations about whether or not to continue investigations.
  4. That Council, following consideration of each report and update in resolution no. 2 ( c ), decides whether or not to fund a continuation of the Trust’s investigations.
  5. That, should the Council decide at any point during the 2007/08 year to terminate its funding of investigations into the Project, any rates collected in excess of expenditure on the Project investigations will be carried forward as a separate, ring-fenced item as a credit to the general rate in the next rating year.
  6. That, in the event the Project terminates, any debt drawn down will be repaid within five years, using, in order of priority:
    1. A special dividend(s) from Dunedin City Holdings Limited
    2. A special dividend(s) from the Waipori Fund
    3. The application of cash operating surpluses (excluding the effect of rates collected for the purpose of servicing the Project debt)
  7. a) That the rate requirement to fund the debt servicing costs on the Council’s contribution towards the Project for 2007/08 be funded by general rates.

    b) Should the project proceed the Council will decide on the most appropriate rating method for funding.
  8. That as soon as practicable, a group is formed comprising appointees of the Carisbrook Stadium Trust and at least two Council appointees (to be appointed by the Mayor and Chief Executive) with experience of large construction projects, to report six weekly to the Finance and Strategy Committee.
  9. That the Council seek advice on the optimum ownership and governance structure for the Stadium Facility, to be received by 31 December 2007.
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