Dunedin's Chinese Garden could be closed on quiet days,
or leased to a private operator, amid fears the Dunedin City
Council is "flogging a dead dragon".
The options - together with a possible merger of the garden
with the neighbouring Otago Settlers Museum - were raised as
councillors continued deliberations on the 2011-12 pre-draft
annual plan yesterday.
Councillors were last night due to have the size of the rates
increase for the draft plan calculated.
But after debate continued into the night, this was delayed
until a meeting next Monday.
A report on the Chinese Garden by council community life
general manager Graeme Hall to yesterday's meeting showed
revenue from admissions and shop sales at the garden had
dropped from $516,717 in the first year of operation,
beginning in mid-2008, to just $250,880 in 2009-10.
With operating costs of $956,000, and revenue forecasts for
2011-12 revised down to $380,000 for the year, that meant
rates funding of $576,000 was needed to run it in 2011-12,
councillors were told.
That was on top of $1 million the council had already
contributed towards the $14 million cost of developing the
garden, as well as the cost of council land to house the
garden, councillors were told.
Operating costs - including a staff of two and regular
maintenance and repairs - were largely fixed, but work was
under way to develop revenue streams including cruise-ship
tourists, garden manager Margo Winchester told the meeting.
She was also working to develop "synergies" with other
tourist attractions in the city, but was facing stiff
competition in trying to crack the cruise-ship market.
However, Cr Lee Vandervis argued the garden's potential
appeared to have been "massively oversold", and the council
needed to cut its losses.
"I believe we need to look very, very carefully at stanching
the bleeding of this particular facility."
He questioned where the garden's future lay, given it
appeared Dunedin residents were not returning for repeat
visits, and hopes of strong interest from Chinese tourists
appeared not to have eventuated.
"Are we flogging a dead dragon or not?"
Mr Hall said he did not believe so, but conceded the aim of
reducing the council's share of operating costs by half, to
bring it in line with Olveston, was "not yet" possible.
The dire picture prompted Cr Richard Thomson to suggest
leasing - but not selling - the garden to a private operator
to run, even if the lease did not provide a return to the
council.
"[It would] still be half a million dollars less cost to the
ratepayers than it currently is," he said.
Mr Hall said that had not been considered but could
"certainly be one of the options".
Cr Thomson said the garden should be given another year to
try to turn its financial fortunes around, and consideration
given to a private operator if it could not.
He also questioned whether even the reduced income
expectations of $380,000 for 2011-12 were realistic, given
income in the last financial year was just $250,000.
"It's still 50% more than what was achieved last year," he
said.
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