Christchurch gets its new indoor stadium – finally.
This afternoon, Christchurch City Council voted to sign a $683 million fixed-price contract for the construction of Te Kaha, a new multi-purpose arena.
The price means that the municipality will have to invest an additional $150 million, a cost that will be recouped through a rate increase.
Only three councilors – Melanie Coker, Sara Templeton and Celeste Donovan – voted against signing a fixed-price contract for the construction, and 13 councilors voted in favour.
The decision is monumental for Ōtautahi – a city that has not had a top-level stadium for over a decade.
Councilors met this morning to make the crucial decision as to whether the controversial stadium construction will proceed, be suspended or demolished altogether.
The meeting started at 10am with scheduled entries including representatives from Hospitality New Zealand, the Central City Business Association and Crusaders and Canterbury Rugby, and the vote took place this afternoon.
Christchurch Mayor Liane Dalziel opened the meeting with advice to councillors:
“This is not an easy decision to make, it is not an easy decision to make. There are a number of factors… the diversity of the communities we represent and their interests.”
Dalziel said the council should also take a “sustainable development approach” and carefully consider the “reasonably foreseeable needs of future generations”.
They also had to balance opposing interests.
“You should cast your vote based on your assessment of how it best represents the interests of the neighborhood as a whole. The responsibility lies with each of you individually.”
It is estimated that Te Kaha would raise as much as $462.2 million in 25 years. Each year it would bring in $3.6 million from sporting events, $10 million from international concerts and $5 million from other events.
Councilors heard details about the site and what it could offer. Te Kaha will have a capacity of 30,000 people and will be used not only for sports competitions, but also for concerts, fairs and exhibitions.
Last year, the council decided to reduce the stadium’s capacity by 5,000 to 25,000 in response to rising costs – then reversed a public outcry.
The stadium could host three major concerts and four “reduced mode” concerts each year, as well as All Blacks Test, seven Super Rugby matches, five domestic rugby matches, one football, one rugby league and two “other rugby” fixtures. It could also host tennis and boxing events, as well as a “flexible” venue and a “mega event” every six years.
There would be 32 food and beverage outlets, multiple bars and areas for children and students.
Te Kaha would also feature world-class parent rooms, passenger elevators, escalators and sightlines from every seat.
The project was intended to support “measurable” measures against climate change and a range of factors, including solar energy and energy-efficient lighting, would be used to ensure the stadium was environmentally friendly.
There would be no on-site parking in an effort to “change behavior around private car use”. There will be ample parking for bicycles and scooters.
Councilors were assured that the fixed-price contract was the best option for the project.
Te Kaha Project Delivery Limited chairman Barry Bragg said the contract was “flat rate” and there would be “no cost escalation”.
A key clause in the deal was that the contractor must provide a suitable facility within the agreed scope, Bragg said, and there were “very few risks beyond the contractor’s responsibility”.
“We are confident we can deliver,” he said.
Singing submission during meeting
Hospitality New Zealand president Peter Morrison brightened up the meeting this morning with a musical number.
For amused councilors, Morrison sang a version of John Lennon’s Imagine on texts about the proposed stadium.
“Imagine there is a stadium, it’s easy if you try,” he said.
“No empty land wasted, above us only … a roof.”
After the presentation, Mayor Lianne Dalziel said Christchurch City Council Speaker Dawn Baxendale, who has 33 years of local government experience, told her that Morrison’s vocal presentation was her first karioke entry.
Dalziel thanked Morrison for a “very effective” presentation.
– By Geoff Sloan
Public Interest Journalism funded by NZ On Air
The road to Te Kaha
In 2010 and 2011, the Christchurch earthquakes damaged AMI Stadium – formerly Lancaster Park – beyond repair.
The plan to create an indoor multi-purpose arena was put forward by a government panel in 2012, which set out how both local and central government would foot the bill.
The expected cost was $470 million. But that later rose to $533 million, and in recent months the Christchurch City Council revealed that the proposed design for the stadium, Te Kaha, had again exceeded its budget.
Costs then rose to $683 million — with the $150 million increase attributed to rising international costs for materials and construction.
The price hike sparked a public consultation last month and the council received 30,000 public submissions on the project.
Of these, 77 percent were in favor of covering the extra costs. Another 8 percent supported a pause and re-evaluation approach and 15 percent wanted a complete halt to stadium construction.
The councilors had three options ahead of today’s meeting: vote to invest the additional $150 million to keep the project going as planned; stop the project altogether; or pause and re-evaluate the project.
The design and construction entry for Te Kaha — on which councilors will base their decision — was unveiled to the public on Tuesday.
Te Kaha Project Delivery Limited chairman Barry Bragg said the design and construction submission had been thoroughly reviewed and advised the municipality to enter into the fixed-price contract.
At the signing of the contract, the municipality must add $150 million to the current budget for the arena.
Bragg said Tuesday that if that happened, rates would have to rise by a net 1.24 percent.
“Overall, building the arena will cost an average of $144 a year in housing between 2025 and 2027. After that, the amount they will have to pay will slowly decrease over 30 years as the debt is repaid.”
The report also revealed that if the council voted to stop the project, there would be $40 million in “sunken costs” that it can’t recover. It may therefore be liable for further costs.
– Reporting by NZ Herald