24. 9. 97

STRATEGY AND RESOURCES COMMITTEE

PARKS AND RECREATION COMMITTEE

10 SEPTEMBER 1997

A special joint meeting of the Strategy and Resources Committee
and Parks and Recreation Committee
was held on Wednesday 10 September 1997 at 12 noon

 

PRESENT:	Councillor Gordon Freeman (Chairman), The Mayor, Councillors Oscar Alpers, David Buist, David Close, David Cox, Carole Evans, Ishwar Ganda, Pat Harrow, Ian Howell, Alister James, Garry Moore, Margaret Murray, Denis O'Rourke, Gail Sheriff and Ron Wright.
APOLOGIES:	Apologies for absence were received and accepted from Councillors Carole Anderton and Graham Condon.

The Committee reports that:

PART B - REPORTS FOR INFORMATION

1.

LANCASTER PARK

RR 6035

The Leisure and Community Services Manager submitted a report analysing the options for funding the proposed redevelopment of Lancaster Park and the impact on Council finances of the Council funding part of the project.

The meeting commenced with a presentation by Campbell Prentice, Chief Executive Officer of the Victory Park Board, who outlined the development programme for the park. A staged development over 2¹/₂ years is proposed as follows:

Stage 1 - $6.4 million

Development of an open stand at the southern end of Lancaster Park providing seating for 10,000 spectators. Projected completion date - July 1998.

Stage 2 - $32.7 million

Replacement of the embankment on the western side of the park with a covered stand capable of accommodating 18,000 spectators. Projected completion date - July 1999.

Stage 3 - $1.6 million

Refurbishment of the eastern covered stands and facilities. Projected completion date - March 2000.

Including outstanding commitments, the total cost of the upgrade is $48.7 million which includes $1.2 million for a scoreboard and $1.5 million for additional car parking.

It was advised that the upgrade was required to meet the standards required by the New Zealand Rugby Union for Category A status for rugby football tests. Failure to undertake the upgrade could result in major rugby tests being lost to the city. The upgrade will not result in an increased allocation of rugby test matches.

It was confirmed that neither of the major codes (cricket and rugby) which currently use Lancaster Park would be able to contribute directly to the redevelopment. The codes' contribution will be made through increased gate charges.

The staff report concluded that the project, on a stand-alone basis, was not viable according to normal commercial criteria. Assuming an investment of $40,000,000 over 20 years at 8.5%, there would be an average annual cashflow shortfall of approximately $2.8 million.

In order to become self-funding all capital required over $30 million (including the existing debt of Lancaster Park) would need to be meet from donations, grants or sponsorship from other bodies. This would be in excess of $18 million. In addition there are assumptions on revenue projections provided from sale of Corporates Suites, club seating and additional gate charges.

The Committees noted that these assumptions have yet to be validated and until this has been done the Council will not be in a position to make an informed decision on its future involvement in the project.

Accordingly, it was resolved:

1. That an independent financial feasibility study be undertaken on the development proposal; the cost to be funded from the contingency fund.
   
   
2. That officers continue to work on the redevelopment proposal.
   
   
3. That the above reports be presented to a special joint meeting of the Strategy and Resources and Parks and Recreation Committees in November.
   
   
4. That the terms of reference for the feasibility study be approved by the Chairman of the Parks and Recreation Committee and the Director of Finance.

The meeting concluded at 1.50 pm

 

CONSIDERED THIS 24TH DAY OF AUGUST 1997

MAYOR

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