DCC sets up company to own stadium

A new Dunedin City Council-owned company has been set up to own the Forsyth Barr Stadium.

To be called Dunedin Venues Ltd (DVL), the company will buy the stadium from the council after the project is completed next year.

The council voted for the plan, first signalled in 2008, at a non-public meeting on Monday, and Mayor Peter Chin released a statement, and the council's resolutions, after a request from the Otago Daily Times.

Mr Chin said the company would have the same board members as the recently established Dunedin Venues Management Ltd: Sir John Hansen, Peter Stubbs, Peter Brown, Peter Hutchison and Jennifer Rolfe.

For the first year their remuneration would be nil.

Asked about the role of the company, Mr Chin said apart from owning the stadium, with resulting "tax efficiencies", it "does nothing".

"That's why nobody [the directors] gets paid anything."

Setting up the company would also cost little, for the same reason, he said.

DVL would lease the stadium to Dunedin Venues Management Ltd, which would also take over the management of other city venues, such as the Dunedin Centre and the Edgar Stadium.

Both companies will operate within the council's Dunedin City Holdings Ltd (DCHL) group.

Council finance and corporate support general manager Athol Stephens yesterday said DVL would buy the stadium from the council for a sum to be determined by valuers.

DVL would borrow from Dunedin City Treasury Ltd (DCTL) money to allow the council to settle the borrowings it made during construction, leaving the council debt-free.

"The difference between the selling price and the debt raised by DVL will become a shareholder's advance to DVL.

"DCTL will lend the money to DVL on terms similar to its lending to other council-owned companies."

david.loughrey@odt.co.nz

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