Christchurch leaders are forging ahead with the $683 million stadium Te Kaha putting the next council under pressure to ease the financial burden on ratepayers.
Photo: RNZ / Supplied
Councillors yesterday voted 13-3 in favour of pumping an extra $150 million into the project following a budget blowout, with Melanie Coker, Sara Templeton and Celeste Donovan the only representatives opposed to signing the fixed-price contract.
While many have hailed the decision to build the multi-use area as a long-awaited economic win for the region, others have warned against gold-plating the central city at the expense of struggling suburban households and other pressing council work.
Average residential rates could rise by $144 per year under the deal but some councillors believe they could soften the financial blow by asking neighbouring councils to chip in, selling assets or reprioritising other projects.
Councillor Donovan said she would not support budget cuts to existing projects.
"The thing that I don't want to see is delaying projects that are already underway. We want to make sure that we get our streets fixed, particularly in the east. I don't think it's fair that ten years on from the earthquake people are still waiting for repairs," she said.
The government has pledged $220m to the arena but does not intend to help the council cover the cost overruns.
Mayor Lianne Dalziel said the incoming council would have time to work on its financial strategy.
"They're not going to be faced with a long-term plan for over a year after they are elected. It is the long-term planning process that enables them to really look at how this is developed by way of financial strategy," she said.
A recent Canterbury Employers' Chamber of Commerce survey found 86 per cent of regional businesses support their council making a financial contribution.
The council should explore all options to free up money, such as selling the temporary stadium site in Addington, Chamber of Commerce chief executive Leeann Watson said.
"Rates is only one lever the council has.
"This is a huge anchor project that needs to be delivered for this city."
Crusaders chief executive Colin Mansbridge was "stoked" with the council's decision, which could see the team play around 10 Super Rugby games in Christchurch once the stadium opens in April 2026.
Some have questioned why rugby is not footing some of the bill, but Mansbridge likened the Crusaders' relationship with the council to one of landlord and tenant.
"In the same way you wouldn't ask a tenant to construct an extension on a house, you would ask them to pay more rent, it's the same principle that will be applied for rugby and other sports and other community groups," he said.
"I think rugby will pay more than its share."
Te Kaha stadium was not in Waimakariri District Council's long-term plan and it had not been asked to make a financial contribution, Waimakariri mayor Dan Gordon said.
"Waimakariri will not be taking any position on funding without full consultation with our community," he said.
Selwyn District mayor Sam Broughton said the council was open to considering a request for funding for the stadium but no formal request had been received.
"Any contribution from Selwyn would have to be subject to consultation with our community - but this needs to be a Canterbury-wide conversation," he said.
Councillors yesterday faced three choices - spend the extra $150 million and build the covered stadium, hit the pause button and re-evaluate the project, or scrap it altogether.
The council received almost 30,000 public submissions on the project, 77 percent of which were in favour of building the stadium despite the escalating cost.
Mayor plugs e-sports as revenue source
Christchurch mayor Lianne Dalziel says thousands of e-sports fans may be a strong source of income for Te Kaha, the new Christchurch stadium.
Lianne Dalziel Photo: RNZ / Conan Young.
She told Morning Report that the project's approval was the final piece in the jigsaw puzzle for the new central city.
"This is a project that is going to get done instead of the years of uncertainty that have sat over it."
Aside from having the Crusaders locked in as a tenant another form of future revenue could be e-sports, Dalziel said.
She said the exponential growth of e-sports was huge and as many as 30,000 people could be using the stadium at the same time all playing the same computer game.
They would feel part of an exciting environment while millions worldwide joined in the same game.
"That's the future and we are going to build the only place in the country that's capable of having the infrastructure embedded for that sort of thing."
Future proofing the stadium (by making it useable for the likes of e-sports) and the city would contribute to making Christchurch an attractive place to live, she said.
Asked if the council bore some responsibility for the ballooning cost, she said at the time of "Share an idea" after the major earthquakes the council worked out a vision with residents.
The government then developed a blueprint of anchor projects for the central city but they were unfunded and adopted before she became mayor.
"I am glad though that we have got to the point where we can get across the line with a fixed price project with the contractors. This is absolute confidence in Te Kaha Project Delivery to be the company that will lead the way in getting this project delivered."
Dalziel said there was plenty of time to go through the long-term plan which was two years away, to talk also to other councils in the region and approach other potential funders.
She expected residents of other districts to agree to making a contribution, even if it meant their rates would have to rise.
Sponsors and other commercial deals would be important in helping to pay for both the fitout and the operating costs.
Dalziel who is not standing for re-election does not believe paying for the stadium will require a cut to other services, either for Christchurch people or those in other parts of the region if they agree to help pay for the facility.
"The next mayor and councillors will know exactly what is in front of us and they will know very clearly what the options may or may not be."
"This is a project that is going to get done" -Christchurch mayor Lianne Dalziel