Answering the $28m question

In the final in the Nelson Mail series on the long-running debate around the case for a performing arts centre and associated conference centre for Nelson, TRACY NEAL explores the issues of its cost and affordability.

Nelson's ageing and somewhat maligned civic hall, the Trafalgar Centre, cost less than $650,000 to build in the 1970s.

It seems like spare change next to the budgeted $28 million for a performing arts centre in central Nelson, but overlaid with today's wrangle over costs and location, not much has changed.

Building the Trafalgar Centre today would cost $22.4m, according to Reserve Bank inflation adjustment figures.

Former Nelson city councillor Seddon Marshall, who served 11 consecutive terms on the Nelson City Council from 1968 to 2001, remembers the debate over the Trafalgar Centre, and frustration over delays in decisions which led to increased costs.

The angst was over the portion of public money set aside for the development, which according to Mr Marshall was around $150,000.

The budget was boosted by the community, clubs and service organisations such as Nelson West Rotary, which put in huge efforts to raise money for the project, says club secretary Ian Christison, who is compiling a 40-year history of the club.

There was no doubt a collective sigh of relief from supporters on opening day in February 1973.

Fast forward to today, and the concern among those against the development is over the millions of dollars needed to build the performing arts centre (plus the $4m budgeted to buy the land), and the legacy it will create in ongoing operating costs.

Mr Marshall is among a chorus voicing concern over the lack of information provided to the public over the financial workings of the planned arts centre.

"The big question I have is, what will the operating loss be? I can't see how the council has gone out to the public without that information. It's the most basic answer and they haven't got it."

The council's corporate services divisional manager, Hugh Kettlewell, gives a hint of exasperation when asked about things like operating losses.

"There's no operating arrangement with the other party [Rutherford Hotel Holdings], so that detail is not there, but financial considerations are laid out in the public consultation document, which show a performing arts centre would cost about $3.8 million a year to run," Mr Kettlewell says.

That includes interest, depreciation and $430,000 of ongoing running costs, which would cover staffing, maintenance, energy, consumables and utilities.

Loan repayments are also included in the total amount, and have already been provided for in the council's long term community plan.

Mr Kettlewell points out the figure presented in the consultation document is a "worst-case scenario" because no revenue has been included in it.

However, ratepayers might not necessarily have to come up with all the $28m development costs, councillor Gail Collingwood assures.

"Twenty eight million dollars may not be what the council has to find but that's what we've had to go out and consult on. There are national funding agencies and trusts I'm sure would come in behind this," she says.

Nelson Mayor Kerry Marshall says the council has not yet gone down the track of "add-ons" – seeking other ways to finance it – but believes that if and when a final commitment to the project is made, further community support will be forthcoming. "It's not yet factored into the budget but I would like to think support will be there," he says.

Councillor Mike Cotton reiterates the preliminary plans for a performing arts centre were passed through the recent long-term plan process.

"The cost, I hope, will include a contribution from the Tasman District Council and possibly a fundraising effort," Mr Cotton says.

He is confident that in the end it should cost the ratepayer less than $28m.

"The cost will impact on rates, of course, but the performing arts centre is needed and should not be delayed or deferred to consider other sites," says Mr Cotton, who is one of the longest-serving sitting councillors.

"In reality Nelson is probably the only city in New Zealand of this size that does not have a performing arts centre or town hall to accommodate theatre shows, and we should hang our heads because of this."

A "lack of information" on the proposed centre has been cited by the Tasman council on why it was not prepared to budget for a contribution to the centre – something it could not see the economic and financial benefits of – councillor Tim King said in March.

"That's not to say the centre wouldn't be supported in the future," he added.

Kerry Marshall says that finally, "we have a proposal the TDC can respond to", and he expects that as a regional facility, Tasman will get involved. But that has not been factored into the budget before the public now.

City council representatives met the Tasman council on Thursday to discuss the performing arts centre, and "presumably try to encourage us to contribute financially", as Tasman mayor Richard Kempthorne put it in advance of the meeting.

His view has been that the best way to assess whether Tasman should be involved is through the two councils' Regional Funding Forum, which applies a formula taking into account things like proximity of such facilities to different population centres to work out who pays what for developments.

Mr Kempthorne says it's a tool that has been used successfully for several years, and should be applied in this case.

Mr Kempthorne says that despite how it might look, Tasman and Nelson can work together on the project. It is the level of contribution that is contentious.

When it comes to the question of a possible over-supply of performance venues in Nelson if the centre goes ahead, those in support say that a purpose-built venue would complement existing buildings.

Kerry Marshall says a proposed small auxiliary theatre within the performing arts centre was canned because of the redevelopment of Nelson's Theatre Royal.

"In my view there's still a big role for those facilities – the Trafalgar Centre has a role to play for things like basketball and rock concerts but the acoustics are not that great. The aim is to create venues that complement each other, not in lieu of.

"The whole thing about this is attracting people to this city."

Councillor Ali Boswijk – while reluctant to comment while consultation is under way – describes the Trafalgar Centre as essentially a sports stadium that provides a venue for a wide range of events with room for a significant number of spectators.

The newly built Saxton Stadium is a participation venue with limited viewing space.

"The issue we have currently is that in lieu of anything else, the Trafalgar Centre has become an ersatz performing arts centre, but the cost alone of the set-up required for performance is a clear barrier to touring shows and events," Mrs Boswijk says.

HAVE YOUR SAY

The Nelson City Council is consulting the public on whether it should go ahead with its plans to build a theatre complex on land next to the Rutherford Hotel, at an estimated all-up cost of $32m, with the hotel expected to build a complementary conference facility. To find out more about the consultation, go to nelsoncitycouncil.co.nz. The Nelson Mail also welcomes its readers' views and contributions to the debate – write to the editor via mailbox@nelsonmail.co.nz. --------------------

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