Dunedin Venues chief executive Paul Doorn said tonight the Russell Property Group had been engaged to further develop concept options and to undertake a viability assessment for a hotel within the stadium precinct.
‘‘The work is exploring the feasibility of seeking a private sector developer and operator for a hotel adjacent to the stadium,’’ Mr Doorn said.
Involvement of the Russell Property Group was confirmed after controversial Dunedin city councillor Benedict Ong identified the firm in an email to various parties, including news media.
This led to councillors being warned about breaching confidentiality requirements.
Dunedin City Holdings Ltd (DCHL) chairman Tim Loan said breaches of confidence placed council companies in a difficult position.
‘‘Our ability to engage openly and constructively with council relies on the assurance that commercially sensitive information shared in good faith will be treated appropriately,’’ he said in an email Cr Ong shared with the ODT.
Dunedin City Council chief executive Sandy Graham said information had been provided to councillors in confidence.
In an email marked confidential in capital letters, Ms Graham said DCHL or Dunedin Venues were doing ‘‘everything they can to ensure the project is not jeopardised’’.
Cr Ong shared the email with the ODT 11 minutes later.
The ODT has previously reported the stadium hotel project is potentially worth tens of millions of dollars.
A proposal was floated in 2021 for development of an internationally branded hotel, multistorey carpark, expanded stadium front entrance, a sports bar and commercial office space.
There had not been obvious signs of progress recently.
In a statement yesterday, Mr Doorn said DCHL and its subsidiary Dunedin Venues had been exploring ways to enhance the stadium precinct and make the stadium more attractive for hirers.
Mr Doorn said Dunedin was constrained for hotel accommodation, particularly when major events were on.
This was a hindrance for attracting events and a missed commercial opportunity, he said.
The Russell Property Group had been asked to explore whether a new hotel could help — ‘‘developed and operated by a third-party hospitality group within the stadium precinct’’ and with Dunedin Venues providing the site and principal events.
Mr Doorn noted the stadium was within walking distance of the University of Otago and Otago Polytechnic.
‘‘Together, they represent thousands of staff, tens of thousands of students, and a combined economic and social footprint that shapes Dunedin's identity.’’
Within a rambling email to various parties, including media, Cr Ong made reference to the Russell group.
Cr Andrew Simms, in an email he did not send to media, raised concerns about Cr Ong disclosing highly confidential information.
This included that the Russell group was involved in discussions relating to a potential new hotel beside the stadium, he said.
Cr Ong shared the email from Cr Simms with the ODT.
Cr Ong subsequently said: ‘‘I have not been briefed on any information on potential developers for a hotel for our stadium.’’
