Regional rate suggested to cover Christchurch stadium operating costs

Wednesday, 21 November 2018

A Christchurch interest group wants to start a discussion about regional councils contributing rates to cover the planned Christchurch stadium's operating costs.

Mayors from across Canterbury are prepared to discuss a rates contribution towards the operating costs of Christchurch's in-development stadium.

But they have 'a raft of quite meaty' questions over how it would be governed and how the contributions would be divided between regions.

The proposal was bought up by future-focussed think tank Committee for Canterbury, who are not directly involved with the stadium development work but hope to start a discussion on how any costs above its revenue could be covered.

It's hoped a multi-use stadium could be built within five years if all goes to plan, with the Crown and Christchurch City Council (CCC) committing $473 million to the project in principle. CCC is leading work on an investment case, to be submitted to the Crown by mid-2019.

* Christchurch stadium investment not on district councils' agendas

* Christchurch stadium design to be workshopped**

The investment case will look at how the stadium might operate, but a pre-feasibility study from 2017 estimated annual losses of $400,000 to $600,000 before depreciation over the first 10 years for a 25,000 seat stadium with a roof.

It also estimated annual life cycle costs (money put aside for major repairs) of $5.9m to $7.4m over the same period, leading to an estimated shortfall of $6.3 to $8m annually.

Chief executive Garry Jackson asked why the costs of running the stadium should fall solely on the Christchurch city ratepayer, given the stadium was a 'Canterbury facility'.

Huranui mayor Winton Dalley says there is 'a raft of quite meaty stuff' that would have to be worked through if regional councils were to contribute.

'If you go back through the history of Lancaster Park, the people who stood on the embankment and cheered on the All Blacks or the cricket teams … came from all over Canterbury.'

Committee for Canterbury are suggesting a similar system to that used for Canterbury Museum, which is run as a trust with members from each contributing rate region on its board.

Much of the museum's costs are covered by ratepayers from the Selwyn, Waimakariri and Hurunui District Council's and CCC, based on the population of each district and proximity to the museum.

Jackson said if you were a Christchurch ratepayer contributing to the running costs, which other Canterbury ratepayers were not, you might be asking what you get in return, whether it was through preferential ticket allocation or lower pricing for events.

Hurunui Mayor Winton Dalley said he was prepared to entertain the discussion of a regional rate but was opposed to a predetermined view on how it would work.

Selwyn Mayor Sam Broughton says it's difficult to speculate on who should cover the stadium's operating costs without seeing a business case and understanding the operating model.

He said there was 'a raft of quite meaty stuff' that would have to be worked through: who the beneficiaries from the stadium were, whether they benefited equally, how big the area contributing rates to it should be, and what the stadium's governance should look like.

'The reality is that the further away you are from the facility you are, the less value you gain from it … so a regional rate would have to be fairly structured.'

Dalley said each territorial authority had its own responsibilities for local sports and social infrastructure, and its own funding restraints.

Waimakariri Mayor David Ayers says the 'real problem that we would have in Waimakariri is that we have never been part of the decision making around the building of the stadium'.

'Just tapping into the ratepayers for another facility is potential going to compromise the local authorities ability to fund their own local social infrastructure.

'So it does need a thorough discussion, it needs good support from the ratepayer base and not just elected officials.'

Selwyn Mayor Sam Broughton said it was difficult to speculate on who should cover the stadium's operating costs without seeing a business case and understanding the operating model.

'I would hope that a proper operational model would support itself.'

Waimakariri Mayor David Ayers said he would be open to further discussing the idea but would want any options to be considered properly.

'The real problem that we would have in Waimakariri is that we have never been part of the decision making around the building of the stadium.'

Were districts such as Waimakariri to contribute to the operating costs, the whole governance model of the stadium would have to be considered. Contributing districts would need to have direct access to its governance, Ayers said.

He said he favoured a regional rate across all of Canterbury over a set-up based on how the Canterbury Museum was funded.

A spokesman for Greater Christchurch Regeneration Minister Megan Woods said conversations about additional funding options could take place following the completion of the investment case, once the scope of the project was better understood.

'This would include whether contributions from other councils might be required, or whether private investment is being sought.'

CCC citizens and community general manager Mary Richardson said until the scope was confirmed, it was too early to confirm funding and operating options. These were questions to be considered as work progresses.

'We are interested to hear and consider all ideas as part of the investment case, and we are planning ongoing workshops and forums with interest groups so we can listen to feedback and suggestions.'