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Hawke’s Bay
An overwhelming number of NBR poll participants say the government should not pitch in $130 million for Sky City’s new convention centre.
The Auckland-based company increased building estimates for the centre, putting the cost between $470 million and $530 million.
The casino operator had previously estimated the centre would cost $402 million, which it had agreed to cover in return for extensions to its Auckland gaming licence.
Sky City chief executive Nigel Morrison says it is expected further refinement of the detailed design and careful management by SkyCity of the tendering process will ensure a competitive total fixed construction cost is obtained from the market.
"The Crown and SkyCity will work constructively to identify additional options to address the funding of any costs over and above SkyCity's $402 million contractual obligation."
The government and SkyCity agreed on the concept design in May, including shifting the site of a planned hotel development on a piece of land previously owned by state-owned broadcaster Television New Zealand.
The decision to build the hotel on the former TVNZ site was made just months after SkyCity bought it on the premise it was needed to build the convention centre.
Economic Development Minister Steven Joyce says he expects the cost difference to be bridged through cost-cutting and in the procurement process, though would consider other funding options if needed.
"Any such options would not involve granting SkyCity more or different gambling concessions, or making further changes to any legislation that affects casinos or gambling," Joyce said.
NBR poll participants are strongly against the government forking out money to help SkyCity, with 86% of participants voicing their opposition to the idea.
Jason Walls
Tue, 06 Jan 2015
Tue, 06 Jan 2015
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SUBSCRIBER-ONLY POLL RESULT: Should the govt help Sky City meet the extra $130m cost of its new convention centre?
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