The $180 million Tākina convention centre. Photo: RNZ / Samuel Rillstone
Wellington city council officers say the $180 million Tākina convention centre has made "lower-than-expected revenue" in its first year of operation.
The multi-level 1280 square metre CBD site was opened just over a year ago, with Wellington Mayor Tory Whanau saying after it was complete that the building would be "the first step in the rebirth of Wellington."
But one year on the results did not look to be quite as rosy.
A recently released council agenda stated that while the centre had delivered an estimated $43m in economic impact to Wellington, a shrinking economy, high inflation, a reduction in business related travel, government budget cuts and a tight labour market resulted in lower-than-expected revenue.
It also said Takina was not achieving the targets set out in its business case, with lower revenue expected over the coming years.
Under the convention centre's operating model Te Papa was appointed to run the business side of the building (its operating costs and revenue related activities) and the council would contribute to its building costs.
The centre's financial issues prompted council officers to conduct a review into its operating model.
That report found in three options for the centre's operating model that the council has been asked to consider.
They were maintaining the status quo, adjusting the existing model, or changing the arrangements between the existing parties (Te Papa and the council).
The agenda stated neither the council nor Te Papa supported maintaining the status quo, while Te Papa were not confident, they could adjust the existing model to make it achievable for them.
It said changing the arrangements did pose risk but did provide the council an opportunity to "drive more aggressive commercial outcomes."
The council has decided not to release the report in full due to it containing commercially sensitive details.
The options will be further explored in the next stage of this review.