Dunedin Venues Management Ltd (DVML) has a budgeted financial target of a surplus of more than $3 million in each of the 2011-12 and 2012-13 financial years, after money from seating packages and sponsorship has been raised, but before the servicing or repayment of any debt.
But the company's statement of intent, a draft version of which was presented to the Dunedin City Council this week, makes clear there are risks with financial forecasts for companies yet to enter the marketplace.
The statement's financial targets for the next three years included a surplus of $3.3 million to June 2012, and $3.1 million to June 2013.
The targets were based on financial information from the Carisbrook Stadium Trust based on Horwath HTL reports, peer-reviewed by Price WaterhouseCoopers, sales forecasts and advice from the council and its financial advisers.
"Of necessity, forecasting the results of a business that has yet to start operating entails a number of risks, and the results should be seen in that light," the statement said.
The financial projections had been prepared "using a number of realistic assumptions about the future, and relate to events and actions which have not yet occurred and may not occur".
DVML chief executive David Davies said the council wanted a return from the company, "which for us, is really critical".
Asked if he was comfortable the surplus could be achieved, he said he was, "within reason".
"If all the projections hold, I'm very comfortable with it."
But as the stadium was built, he had no doubt "things will come out of the woodwork".
After the September 11, 2001, attacks on the World Trade Centre, for instance, bands stopped travelling to perform.
"What I would say to residents of the city is the stadium is on target to finish on time and on budget.
"But let's be clear.
"The world will be a different place in two years' time."
As well as the financial aspects of the company, the statement covers the first three years of its operations.
Its principal role was to operate as a successful business, but with the direct influence it had in community affairs, the company was "aware of and sensitive to the community's needs", and would act in a "caring and responsible" way.
Among the measures the company would take to develop its community responsibility would be to make its facilities available to community groups at affordable rates, seek out and encourage groups who were at present unable to use its venues, and establish a community scheme at the stadium.
