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Dunedin Council to investigate stadium costs

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Fri, 24 Feb 2012 3:33p.m.

The results of the review are expected to be made public in late March

The results of the review are expected to be made public in late March

By Dave Goosselink

Controversy continues to follow Dunedin's new covered stadium.

The Dunedin City Council has ordered an independent review of the final cost of the Forsyth Barr Stadium, six months after it opened for business.

A report given to councillors this week raised serious questions over the amount spent on the venue, with Mayor Dave Cull hinting the excess could run into millions of dollars.

Forensic accountants from Pricewaterhouse Coopers will begin their review next week, at a cost of $55,000. 

They will be combing through all the contracts and bills for the stadium, which opened in August near Dunedin's waterfront.

Mayor Dave Cull has ruled out the likelihood of any criminal or fraud-related charges, but said the lack of clarity and certainty around some figures prompted the review.

The original cost of the stadium including land purchases was $198 million, with the bulk of funding coming from the Dunedin City Council and Otago Regional Council. 

Additional items were later added to the project cost, including the artificially strengthened turf, kitchen fit-outs, scoreboards, and replay screens. They were funded through trust grants, caterers, and the City Council.

Forsyth Barr Stadium has hosted a range of events including Wellington Phoenix and Highlanders matches, a concert by singer Elton John, the Masters Games, and student orientation gigs.

The results of the review are expected to be made public in late March.

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Comments

27 Feb 2012 07:03a.m.

keith ross wrote:

Lucky you say, I would feel lucky if the council had not delayed or cancelled almost every other bit of improvement to our city.I live in broardbay and am now going to have to wait at least 2 more years to get a footpath. My kids will not be able to enjoy the improvements to moana pool that have now been canned or the maintenance on tennis courts at logan park (because of the debt everything has been either deferred for 2 years or cancelled) all for a stadium that sits empty for almost every day of the year.

25 Feb 2012 01:55p.m.

Jim Seaview wrote:

Hi Ruz, Yes you are correct regarding the ongoing operational cost being a worry to the Dunedin residents. My comments were based on the observation is that its been built, it is the country's first covered stadium, enjoy it and use it. Cheers

25 Feb 2012 01:51p.m.

Phred wrote:

It has had one major concert. Stadium bosses turned down two others. Promoters don't seem interested in it any more. Doesn't seem to have any bookings for the immediate future.

25 Feb 2012 11:47a.m.

Ruz wrote:

Well as you know Jim, Westpac Stadium in Wellington is well under utilised and it has far more events than the Dunedin Stadium will ever get. The issue is not so about the capital cost of the Dunedin venue, but its ongoing operationalc costs. In other words will it atract enough events to pay the power bill. Let me know when Lady Gaga books in.

25 Feb 2012 08:31a.m.

Jim Seaview wrote:

Quote: "
Forsyth Barr Stadium has hosted a range of events including Wellington Phoenix and Highlanders matches, a concert by singer Elton John, the Masters Games, and student orientation gigs."

I live in Wellington and state that regardless of whatever the final cost may be, the stadium has been built, it is in walking distance from the city centre, it looks really good and the only thing left now is for the management and promotion people to get as many forward bookings as possible and for Dunedin people to be proud of it and enjoy whatever entertainment, event or game that is provided, and use this magnificent facility. Not attending because of poor weather has now been taken out of the equation. Dunedinites - You are so lucky