Farry rejects stadium cost overrun, purpose concerns

The Carisbrook Stadium Trust has taken on criticism of aspects of its Awatea St stadium proposal, arguing the stadium will be fitted out to an acceptable level, and that the risk of cost overruns can be adequately managed.

Chairman Malcolm Farry rejected allegations the stadium would not have the facilities it needed.

"It's nonsensical to suggest we're sitting around as a board, designing something that will not be fit for purpose.

"It will be fit for sport, for conferences, small meetings, large meetings . . ."

The issues, and many others, have been raised by opposition group Stop the Stadium in an opinion piece in the Otago Daily Times by Greater Dunedin councillors Kate Wilson, Chris Staynes and Dave Cull, and in numerous letters to the editor of the newspaper, as reasons the stadium should not be built.

Cr Wilson responded yesterday, saying she did not want to undermine the project, but questioned whether the money being spent could be better used improving the facilities the city already had.

Her job was "to be devil's advocate and find out what the risks are for ratepayers," something she would not stop doing, she said.

The trust's response came in the latest report to the Dunedin City Council's finance and strategy committee, which will discuss it on Monday.

The report covers each of the conditions the council set for the trust in a March meeting, where it was agreed to keep funding the project.

It also includes a section marked "additional questions" that Mr Farry said yesterday were replies to questions from a variety of sources, including the three city councillors, as well as letters to the editor of the ODT.

Answering critics who claimed the stadium would not be fitted out for use, the report said the stadium was designed to enable a multitude of events to take place.

It said "overlays" were used to host events in stadiums around the world.

"This ranges from providing some simple equipment such as exhibition stands, to the provision of a temporary swimming pool, as occurred at the Rod Laver Tennis Arena in Melbourne for the 2007 swimming world championships."

To host a specific type of event it was not prudent to own the equipment, but to "overlay" the venue with hired equipment and charge the costs to the hirer.

Cr Wilson said advertisements for the stadium showed a basketball court, which was not included in costings. There was also no evidence basketball in Otago needed or would use such a facility when the sport already had the Lion Foundation Arena, she said.

Dealing with the suggestion cost increases incurred after a guaranteed maximum price had been negotiated would be passed on to ratepayers, the report said that would be dependent on conditions stipulated in the contract.

"It should be borne in mind, however, that the more risk that is placed on the contractor, the greater the potential cost of the guaranteed maximum price."

Asked if he was confident the risk could be mitigated, Mr Farry said every result to date suggested it could be.

"Having said that, however, I want to make it plain it's a huge task for everybody.

"If we aren't up to meeting the task, then obviously the project wouldn't go ahead."

Cr Wilson noted big increases in smaller council budgets, like roading, and said she was concerned the same could happen with the larger project of the stadium.

Mr Farry said there had been a "huge response" to registrations of interest for the role of main contractor for the stadium from around the country.

"We've got all the significant players," he said.

Registrations closed on Thursday.

 

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