Another Million Added To The Stadium Bill

The new chief executive of the Stadium (DVML) company, David Davies, has wasted no time in putting his hand out for more money from the Dunedin City Council.
In a report (pdf) to the Council, it is revealed that Dunedin Venues Management Limited is expecting $2.4 million to cover spending before the Stadium receives income. $1.5 million of this is for staff expenses. About $1.4 million of this is already budgeted for, from rates and Carisbrook Stadium Trust appropriations. About $1 million is not currently budgeted for.
DCC Finance Manager, Athol Stephens claims that not extra contribution is required from rates because the money can be found from:

• a "subvention receipt" from Aurora Energy Limited of $0.672 million
• a one-off dividend of $0.264 million to be transferred through DCHL

Taking this extra money from Dunedin City Holdings just means that DCHL debt will be $1 million higher than it otherwise would have been. Athol Stephens can play a shell game, and move money around between different places all he likes. But in the end, it is all ratepayers funds and affects rates.
And this extra payment raises the question:
If this extra $1 million is required for the Stadium, then why was it not included in the Carisbrook Stadium Trust projections?

Peninsula Challenge on TV3

The Otago Peninsula Challenge was the subject of an feature on TV3 News last night. This was excellent promotion for our scenic Peninsula and Dunedin's active lifestyle.
As an active mountain-biker (I regularly ride with the AOK Social Rides), I have always participated in this event. But I think that it may be too hard for the average rider. The drop in mountain-bike entries this year, from 350 to 250, seems to confirm this. Significant sections of the course are just not ride-able, except by the elite e.g. the steep climb between Allen's beach and Cape Saunders, and the climb up from Victory Beach. There is just too-much "push-a-bike" to make participants eager to come back.

ODT Slams Annual Plan Sham

See the editorial in today's Otago Daily Times.

Well Done to Bookit

A good news story in the ODT:
Dunedin IT company, Bookit, has been sold to TradeMe. The company provides on-line payment services to the tourism industry. Founder, Andrew Schofield, will get a payout for his initiative and nine years of work, as will investor, Ian Taylor.
It is dreams of buyout which drives the startup culture of places such as Silicon Valley. Bookit's success will be encouragement to existing and potential entrepreneurs in Dunedin.
It is not the bureaucrats and politicians in the Town Hall that create the wealth of the City, it is the hard work and enterprise of private individuals and businesses that will bring make us richer.

Wall Street Losing Money?

The Dunedin City Council's much-hyped shopping mall development may be losing money.
This item was in the ODT story on the DCC budget:

Other increases contributing to the council's rising operating costs included a further $1.05 million for the city property department, in part covering operating costs for the council's Wall Street mall.

Mr Stephens said those costs included rates, the building's warrant of fitness, cleaning and other costs not covered by rent from tenants.

Overall revenue from the complex was "more than adequately" covering costs, he said.

If rent from tenants is not covering expenses such as rates and cleaning, then Wall Street is losing money, not contributing to the City's finances as was the expectation.

Later update:
I may have misunderstood this, "not covered by rent from tenants" may mean not paid directly by tenants. Perhaps there is income elsewhere in the budget for rent.
It would be good to see the actual figures to see what effect Wall Street is having on the DCC budget. Does the income cover all expenses including depreciation?

Sign For This Summer..

This rain-streaked sign outside "Salt" restaurant on St Clair Esplanade in the middle of Summer ....

The bad weather just goes on and on. And with the Big Freeze in the Northern Hemisphere, the global warming theory is looking more and more unlikely.
I recommend "Salt" for some of the best dining on the block: fine food and good value.

Dunedin Drowns in Debt

The Otago Daily has had two features this week raising concerns about Dunedin City Council debt:
a front-page story, "City debt spiralling to $360 million", and an editorial, "The debt millstone".
But, as Calvin Oaten has pointed out, if Council-owned companies are included then the debt will actually total $730 million.
It is hard to disagree with the ODT here:

The council has long disappointed ratepayers with its history of failing to curb rates increases and rising charges, of heavier drawing down from debt-laden council-owned companies, and of encouraging ballooning liabilities.