The new Cromwell Memorial Hall and Events Centre is looking at an annual running cost of $1.7 million, with annual revenue starting at just $100,000.
In a statement, the Central Otago District Council said the Cromwell Community Board had begun to discuss options about how the new hall and events centre, now under construction in Melmore Tce, could operate.
The $45.8m building will include a 400-seat auditorium, a 40-seat cinema, a museum, a cafe, and flexible meeting and entertaining spaces.
At a community board meeting this week, Central Otago District Council community experience general manager David Scoones gave a workshop presentation which covered the operating model, operating costs and debt servicing, possible different uses, and the next steps in the discussion.
Revenue from the first year of operation was suggested to be about $100,000 from a mix of community and commercial use, increasing to $550,000 by year six.
This would be dependent on the operating model chosen.
Indicative costs based on research undertaken on other similar-sized event facilities estimated the cost of operating the facility, depending on the operating model, to be $1.7m excluding debt, insurance and depreciation, with suggested funding to come from council and external grants, commercial and retail revenue.
The various operating models to be discussed include a council-run facility, or a council-controlled organisation running the facility, or under an operating lease.
The community board discussed ways the spaces in the facility could be used.
This included suggestions such as renting hot desks to organisations and businesses.
