Date: Tuesday, 23 April 2013

Subject: PM Convention Centre Endorsement Welcomed

The Queenstown Lakes District Council has welcomed Prime Minister John Key’s proposed extra investment in tourism which it anticipates will extend to funding for the development of convention centres, including the proposed Queenstown convention centre.

During his weekend address at the start of the TRENZ tourism conference John Key acknowledged the important role that convention centres will play in terms of attracting high yield visitors to the country.

“The Prime Minister has again signalled the government’s support for convention centres and singled out the Queenstown centre in conjunction with Christchurch and Auckland. At the same time he has talked about a significant financial commitment over the next four years. We are obviously delighted and very encouraged by these comments as we continue to negotiate funding,” QLDC Mayor Vanessa van Uden said.

The Council announced in February it was entering into negotiations with a preferred consortium led by investors Ngai Tahu Property Limited and Morrison & Co, with the preferred site being Council-owned land, overlooking the Queenstown Central Business District.

Negotiations for the development of the convention centre remained firmly on track, with Council currently seeking comments through the draft Annual Plan process, QLDC Chief Executive Adam Feeley said.

“We want to take the opportunity through the Annual Plan process to hear initial thoughts from the community. A consultation process specific to the convention centre will happen once that detail is known, it’s essential the community can give informed feedback,” he said.

The Mayor and Council wanted no surprises when it came to the scope and cost of the proposed project. That information could only be provided once detail had been discussed and agreed in principle.

Mr Feeley said that the initial discussions had focused primarily on two issues: a preferred site and the consenting issues associated with that site; and the possible financial arrangements for the investors; operators and local and central government stakeholders. “We believe that the consenting issues are eminently capable of being resolved, but it is the financial issues that are likely to generate strong public interest,” he said.

The investors needed to know that the project was financially viable; the operator needed to know that it represented a good business opportunity; and central and local government needed to ensure that the scope of any contribution was both well-defined and capped, as well as delivering indirect economic benefits well in excess of that direct investment. A further update on the project could be expected in June, Mr Feeley said.

ENDS

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