Casino operator, Joyce insist new approved design is also improved. It's certainly smaller.
Nick Grant discusses the new convention centre plans on NBR Radio and on demand via MyNBR Radio.
See also: SkyCity says second half revenue up 17.9%, mulls property sales
SkyCity has revealed its revised design for its controversial Auckland convention centre.
The casino operator was forced to go back to the drawing board earlier this year when a public outcry over the possibility of taxpayers stumping up for a funding shortfall prompted the government to finally declare no public money would go into the project.
Prime Minister John Key had always insisted the centre would be built “at no cost at all [to taxpayers] with the risks taken by the operators”, although he briefly backtracked on this assurance when he tested the tolerance for a bailout.
The new plan increases the contracted value of SkyCity’s investment in the New Zealand International Convention Centre (NZICC) from $402 million to $430 million, with the casino operator committing to covering total costs – including land – of up to $470.
The new, agreed-upon price tag is meant to reflect the additional benefit to the company of relocating the proposed site of a future luxury hotel development to land on Hobson Street – former TVNZ land that SkyCity had initially insisted it required for the centre.
In a supplied Q&A document (see RAW DATA), SkyCity notes the increased cost is also due to an unexpected increase in construction costs and the fact the company will now own “several food and beverage outlets within the NZICC” as well as the car parks underneath the NZICC.
In a statement to NZX (see RAW DATA), SkyCity says it will sell its Federal Street car park (currently valued at approximately $40 million) when the new underground car parks are completed.
The casino operator also states it “is exploring various partnering options with external investors for the development and future ownership of the hotel” – which it estimates will cost between $130-$140 million to develop – “as well as considering other property-related funding options.”
Both SkyCity and Steven Joyce – the minister responsible for overseeing the project on behalf of the Crown – are at pains to emphasise the new NZICC design will not be the “eyesore” Mr Key earlier fretted a lower cost approach might result in.
“This design is just as impressive as the last one – some say better,” the casino operator insists, while in a statement Mr Joyce says the “amended design will be very similar in appearance to the previous design and will, when built, be a major new amenity for the city.” (See RAW DATA)
The centre will be smaller than originally envisioned, however.
Statements by both Mr Joyce and SkyCity note the number of delegates the new plan will be able to accommodate is only a few hundred less than the initial, ultimately rejected preliminary design – a total of 3150 rather than 3500 and a plenary capacity of 2850 instead of 3000.
Both parties fail to mention SkyCity’s original application to win the project involved building a convention centre capable of hosting conferences of 3500 to 5000 people.
The casino operator says it hopes to begin construction by the end of this year.
That is, however, contingent on SkyCity receiving non-notified consent from Auckland Council for the convention centre.
If the consent is subject to public submissions, it’s been estimated the process will delay the project by a further 18 months.
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RAW DATA:
