CCC Support For Infrastructure Investment Welcomed
Monday 23 February 2009

Vbase is welcoming Christchurch City Council support for investment in two of the city's major facilities that generate millions of dollars for our local economy.

Vbase made a formal submission to the 2009/19 Long Term Council Community Plan [LTCCP] for a major expansion of the Christchurch Convention Centre and the refurbishment and modernisation of the Christchurch Town Hall for Performing Arts.

The submission also proposes the transfer of Town Hall ownership from Council to Vbase Ltd, providing substantial management and financial benefits to both entities. The strategic asset status of the Town Hall is preserved under the proposed ownership transfer.

The submission has been included in the Council’s Draft LTCCP, which will now go through a formal public consultation process.

Chief Executive Bryan Pearson says we need to build on Christchurch’s historical position of leadership in the quality of its venue infrastructure and its contribution to regional economic growth.

“The Convention Centre is a major part of the infrastructure of this city and we can’t meet demand. The Town Hall also has maintenance and asset replacement requirements that are in need of urgent attention to meet the needs of clients now and in the future.

“This is the result of a lack of maintenance and asset replacement investment during the decade the facility was managed under a previous structure.”

Mr Pearson says there is a strong economic argument for investment in business tourism infrastructure.

“In the 11 years since it opened, the Convention Centre is calculated to have generated $1.6 billion of economic activity in our region and $800 million of economic value added. Every year business visitors attending events at the Convention Centre spend in excess of $60 million during their stay,” he says.

“Those visitors have been the catalyst for development of other tourism infrastructure in the city, however, while the business tourism market is forecast to grow, Christchurch’s ability to share in that growth is constrained by a lack of space within the Centre.

“We are turning business away and growth is constrained because we are operating at capacity for much of the year and unable to meet demand from the business tourism event sector. This impact is felt across the city as visitor spending flows throughout our community.”

The total estimated capital cost of the proposed work is $101.8 million. That is made up of Town Hall refurbishment and modernisation $19.9 million and the Convention Centre expansion $81.9 million. Given these projects have significant regional and national economic benefits, Vbase and Council intend to work with Government to secure its financial support for the development of this key infrastructure.

Two properties have been purchased to protect the future development pathway for these facilities. There are no other operational or cost efficient options for expansion and so securing this opportunity was critical.

The Town Hall works would be staged over eighteen months commencing early 2010. The Convention Centre construction would take place over the years 2012 – 2014. Both facilities would remain open for business during redevelopment.

ENDS

The Vbase LTCCP Submission is available on The Vbase LTCCP Submission is available on www.vbase.co.nz

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