DCC Bails Out Otago Rugby

The Dunedin City Council has admitted that a reason that the DCC is buying Carisbrook is to resolve Otago Rugby's financial situation.

Calvin Oaten's letter to the ODT:

In all the triumphal utterances of the Carisbrook Stadium Trust, the Dunedin City Council and general supporters of the proposed stadium, one important matter seems to have slipped under the radar. Neither the DCC nor the plentiful opponents have made much of the fact that the DCC has purchased Carisbrook from the Otago Rugby Football Union. Why? Is it not a very pertinent point of the whole debate?
Indeed, why did the DCC need to purchase it at all? Surely, if the ORFU needed to sell it, why did it not simply go on the open market? I fail to see what value there is for the citizens intaking ownership of a stadium about to be made redundant by the very same representatives of those citizens.
Some serious questions need to be answered by the DCC chief executive is Jim Harland:
• Why did the DCC buy Carisbrook?
• What price did the DCC pay?
• Did the price agreed take into consideration the $2 million debt that the ORFU owes the DCC?
• Was the purchase-price factored in as part of the budgeted $198 million cost ofthe Awatea St stadium? If not; why not?
• What use does the DCC see for the purchase and what costs are budgeted for in order to demolish existing improvements, thus making way for reuse or sale of the site?
• Did the purchase include the ORFU’s other properties on Burns St and parking areas on Neville St?
These questions are essential details which the public are entitled to know if they are to be able to assess the value of the council’s decision to make the purchase. After all, we have just seen where the relative land purchases at the Awatea St site cost $35.6 million, up from an original estimate of $15 million. A full explanation of the above points at the earliest convenience would be appreciated.

Jim Harland, chief executive, Dunedin City Council, replies:

Why did the DCC buy Carisbrook?
To assist the ORFU as anchor tenant in the new stadium and to secure a piece of industrial land for the future of the city.
What price did the DCC pay?
This information is confidential until negotiations have been concluded.
Was the purchase price factored in as part ofthe budgeted $198 million cost ofthe Awatea St stadium?
No. The council’s concern is to ensure the ORFU is in a viable financial position looking into the future.
What use does the DCC see for the purchase and what costs are budgeted for in order to demolish existing improvements, thus making way for reuse or sale of the site?
No decisions have been made on the future use ofCarisbrook. The modelling prior to purchase took into account likely demolition costs.
Did the purchase include the ORFU’s other properties on Burns St, and parking areas on Neville St?
Yes.