Local Govt | National News Video | Parliament Headlines | Politics Headlines | Search

 


Ratings Impact Analysis for Proposed Convention Centre

Ratings Impact Analysis Developed for Proposed Convention Centre


Commercial properties in the Queenstown CBD set to benefit the most from a proposed Queenstown Convention Centre, would contribute more in rates under the recommended rating model to be considered by the Queenstown Lakes District Council next week.

Chief Executive Adam Feeley said that in preparing the report a series of financial analyses were undertaken:

1. The capital costs were revised and a figure of $30.9 million was identified as a realistic “base case” for QLDC’s share of the forecast $55.5 million project.

2. The projected operating costs analysed in the 2012 feasibility report by Horwath’s HTL Ltd were also reviewed and a number of high and low case operating scenarios identified. Of the five scenarios, the “second worst case” scenario was selected as the most appropriately conservative set of assumptions;

3. Three models for allocating costs across ratepayers were then considered. The proposed model assumed the greatest percentage of costs being met by CBD businesses, and the smallest percentage being met by Wanaka residential ratepayers.

4. The financial impact of the operating losses over five years and the base case capital costs (i.e. $30.9m) were then put through the proposed allocation model.

The proposed model highlighted that 85% of ratepayers would face a rates increase of 0-3%, or in dollar terms approximately $10 to $130 a year, from the proposed convention centre, At the other end of the spectrum 2.5% of ratepayers would face increases between 15-26%.

“While a convention centre is likely to be a positive for the district as a whole in terms of economic benefit, the most direct beneficiaries of it are targeted for the most significant contribution to the cost of its development and operation” Mr Feeley said.

Mr Feeley said that the report endeavoured to present the most conservative possible picture of the financial implications of the convention centre.

“We have adopted a negative scenario for financial performance, and have not factored in the very significant revenue which will be generated from the sale or development from the remaining land at the Lakeview site. Our advice is that the overall financial performance could be considerably better, and consequently the ratings impact could be less. However, Council has signalled that it wishes to present a “warts and all” picture of the potential financial performance of a convention centre.”

The updated Horwaths report outlines financial performance scenarios ranging from the most optimistic (where the convention centre generates an operating surplus of $1.6 million) to the most pessimistic (an operating deficit of $1.2 million). The most likely result suggests that a convention centre would break even in its third year and produce operating surpluses of approximately $0.75 million p.a. by year five.

If the Council adopts the report recommendations, it will provide detailed information on the proposed convention centre in this year’s Draft Annual Plan and seek the community’s views on whether to proceed with the project. The Draft Annual Plan will be adopted for public consultation just before Easter.

ENDS

Click here to view the report and appendices under Item 05 on the Council’s website as part of the agenda for next Thursday’s Council meeting.

© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Greek Riddles:
Gordon Campbell On The Recent Smackdown Over Greece

There had been a fortnight of fevered buildup. Yet here we are in the aftermath of the February 28 showdown between the new Syriza government in Greece and the European Union “troika” and… no-one seems entirely sure what happened. Did the asteroid miss Earth?

It seems to have. The EU still exists. Syriza is now claiming a victory of sorts. It doesn’t help that the only people who do appear to be sure (the Greeks buckled) are claiming the exact opposite to what the other group (the Greeks won!) are saying. Plus, there are bets either way e.g. Bloomberg News: “Its too early to say who caved in to whom.” More>>

 

PARLIAMENT TODAY:

Iraq: Ex-Hostage Says Government Not Putting NZers, Iraqis First

Harmeet Singh Sooden is travelling to Iraq in the coming weeks to work with Christian Peacemaker Teams (CPT) on a short-term assignment. More>>

ALSO:

Joint Statement: Australia-New Zealand Leaders’ Meeting

Prime Minister Key warmly welcomed Prime Minister Abbott and Mrs Abbott to New Zealand. The visit has enabled wide-ranging and substantive discussion that has underlined the strength, value, diversity and warmth of our trans-Tasman relationship. More>>

ALSO:

Press Conference: Peters To Stand In Northland By-Election

New Zealand First Leader Winston Peters has announced his intention to stand in the Northland by-election, citing his own links to the electorate and ongoing neglect of the region by central government. More>>

ALSO:

Gordon Campbell: On The Wage Hike For MPs (and Paul Robeson)

Hard to tell what is more infuriating. Is it the 5.3% increase on the already bloated salaries of MPs, or their pantomime of outrage at being gifted with such a wonderful back-dated bonanza? More>>

ALSO:

No Designers Or Visual Artists: Flag Panel Members Announced

The Government has appointed 12 New Zealanders as members of the Flag Consideration Panel which will engage with the public about a possible new New Zealand flag, Deputy Prime Minister Bill English says. More>>

ALSO:

Labour MP Stands Down From Portfolio: Comment From Carmel Sepuloni

The first I knew of my mother’s charges was when I was called by a reporter yesterday. I spoke to Andrew and we agreed there is a conflict of interest at the present time which means I will temporarily stand aside from the Social Development portfolio. It’s the right thing to do… . More>>

ALSO:

Gordon Campbell: On Whether NZ Troops Are The Least Of Islamic State’s Problems

Given that it has been politically packaged and sold as a training mission, the Iraq deployment announced yesterday by Prime Minister John Key seemed to be mysteriously short of actual trainers... The other wing of the argument is whether a troop deployment is (a) the only effective way and (b) the appropriate time to combat Islamic State. More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
Regional
Search Scoop  
 
 
Powered by Vodafone
NZ independent news