Saturday, December 19, 2009 Go the Taniwha! Events Centre Update
Half truths, suspicions and allegations of back room dealing continue to swirl around the project however, which instead should be accepted as the major asset that it is.
Yes, the Northland Rugby Union is going to own a portion of the new stadium. The union had invested heavily in the old stadium to an estimated $2m worth of work and deserves to be compensated .
The union developed the Kauri Lounge putting in the kitchen, bar, carpets and furniture.
At around the time Northland hosted the Ranfurly Shield the union expanded seating at the grounds at its own cost.
Most recently it added the revenue earning corporate boxes at the grounds taking out a $300,000 (interest free) loan from council to do so.
All that work was demolished to make way for the new stadium and it is only fair the union be compensated.
It is expected that these assets, including a lounge and changing rooms, will be for the exclusive of NRU for 10 days of the year. At all other times those areas will be available to be rented out to events centre users.
There’ll be no money changing hands; an asset appearing on the district council books will move the rugby union books.
Aside from being a fair thing to do, transferring part of the asset to the Northland Rugby Union also satisfied (to some degree) the requirements of the NZ Rugby Union which ultimately will decide the fate of the Northland team.
Without assets on its books and a performing team the Northland Union may be excluded from top competition meaning no more television coverage (and their fees) at the grounds, meaning a drop in advertising and sponsorship signage, leading to a fall in revenue - not what anyone wants.
The role of the Regional Council which collected much of the funding for the new building via a special recreational rate has raised some questions.
Originally Whangarei was to have supplied the bulk of the funding with smaller amounts coming from the Far North and Kaipara as the stadium would be a regional facility providing benefits for the whole of Northland.
Not everyone saw it that way and last year the proportion of funding supplied by the Far North was granted toward sports facilities in Kerikeri while Kaipara’s money was directed to the new swimming pool in Dargaville.
All that means that Kaipara and the Far North have benefitted from the recreational rate with Whangarei carrying the full cost of the stadium.
Another area that seems to be concerning some people is the trust deed.
This document was first prepared under the previous council, but was never signed off and has now been changed.
Originally the trust was to “own, operate and maintain” the facility. Now it will simply “operate and maintain”.
It makes sense - there is no advantage in having the trust actually own the building. The Trust would not be allowed to sell it, or borrow against it; nor are they occupying the building. If, in the far future, rugby becomes a minor sport or there are other major changes, the council of the day (which also retains ownership of the land) can sell or alter the facility as the community may see fit.
The Centre will generate revenue streams provided by the two retail areas, conference centre and rent of office space in the facility. That revenue in turn will help fund maintenance and operation of the facility. Ownership of such assets would work against the trust by precluding it from gaining “not-for-profit” status, thus excluding the trust from receiving grants from the likes of Lottery and the ASB.
The new trust whose members have yet to be named will have the services of a manager to handle the day to day running of the complex, and in truth finding activities to fill the stadium over summer will be one of the challenges.
The grandstand, which offers one of the best field views of any stadium in the country, has been built in a shell shape specifically to accommodate a performance stage in front and acoustics which will serve the whole seating area so concerts and other cultural performances are easily catered for.
With an end to construction in sight the facility is already looking impressive for anyone lucky enough to get a close look.
I’ve no doubt it will be a valuable asset to the district, that it will attract teams and spectators from around the country and be a facility Whangarei can justifiably feel proud of.
Roll on the World Cup, and in the meantime, `go the Taniwha.’
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