Crusaders boss Colin Mansbridge and Christchurch Mayor Lianne Dalziel shake hands after the historic vote for the new stadium. Photo / George Heard
Christchurch will finally get its new stadium.
Christchurch City Council voted to sign a fixed-price $683 million contract to build Te Kaha, a multi-use arena.
The price means the CCC will have to invest an extra $150m, a cost that will be recouped through a rates increase.
Councillors Melanie Coker, Sara Templeton and Celeste Donovan voted against signing the fixed-price contract for the build and the other 13 councillors supported it.
The decision is monumental for Ōtautahi - a city that has not had a top-level stadium for more than a decade.
Christchurch Mayor Lianne Dalziel said that she is really pleased with the council's decision.
"It feels really good, it feels like the last piece of the jigsaw that has been completed now we have the full picture"
She said it demonstrates a high level of confidence in the Te Kaha project, something she is proud of.
"It's taken us a while to get there but now I am feeling really confident that we are going to deliver."
Dalziel also she is excited for the future of Christchurch and for it to reinstate its status as the "sporting capital of New Zealand".
Crusaders Chief Executive Officer Colin Mansbridge says he is "absolutely stoked" with the arena's green light.
He believes Christchurch will see an influx of old supporters coming in who stopped due to the "uncomfortable" and "cold" conditions of the existing stadiums.
"The reports we here about our current venues is that they are just too cold, just too uncomfortable, so they stopped going, those people will now be back."
He denounced any comments regarding "rugby not paying their way" for the arena as he celebrated.
"There's been a couple of comments about rugby not paying its way, it's a bit like a tenant in a house. You don't ask the tenant to build the house, you ask them to pay the rent."
Terry Davies, CEO of Dunedin Venues, said he is prepared to "be aggressive" in order to keep events at Forsyth Barr Stadium.
"We will do what we do, getting the best team together, building the best relationships and making sure we are aggressive. Nothing will change, except we will be more aggressive than we have ever been before."
He maintained that the new arena was just another competitor and that it wouldn't make a difference if it had been put in Christchurch, Wellington or Auckland.
"If they think they will get everything that comes to the South Island, that's naive," Davies said.
The meeting began at 10am on Thursday with scheduled submissions including representatives from Hospitality New Zealand, the Central City Business Association and Crusaders and Canterbury Rugby.
Elected members heard a detailed description of the proposed stadium and its economic benefits from Te Kaha Project Delivery Limited.
They heard the fixed-price contract to build the stadium - announced this week - was "a very good deal in this market".
There was "very little" risk that the $682m cost estimated for the council would increase.
This afternoon a financial report was presented and explained.
It is estimated that over 25 years Te Kaha would collect $462.2m for the city.
Each year it could help attract spending of $3.6m from sporting events, $10m from international concerts and $5m from other events.
Councillors heard details of the venue specifics and what it could offer not just to the public but for corporate clients, trade shows and expos.
The stadium would be able to host three large concerts and four "reduced mode" concerts each year as well as All Blacks tests, seven Super Rugby matches, five domestic rugby games, one soccer, one rugby league and two "other rugby" fixtures.
It could also host tennis and boxing events as it would be a "flexible" venue.
There are hopes for a "mega event" every six years.
Te Kaha would have 32 food and beverage outlets, multiple bars, and areas for kids and students.
It would also boast parenting rooms, passenger lifts, escalators and world-class lines of sight from every seat.
The project aimed to support "measurable" action in climate change and a range of factors including solar and energy-efficient lighting would make sure the stadium was environmentally friendly.
There would not be any car parking on site in a bid to "change behaviours around private car use".
There will be bike and scooter parking.
Councillors were assured the fixed-price contract was the best option for the project.
Barry Bragg, board chairman of Te Kaha Project Delivery Limited, said the contract was "lump sum" and there would be "no cost escalation".
He said a key clause in the deal was the contractor had to deliver a fit-for-purpose facility within the agreed scope.
Bragg said there were "very few risks sitting outside the contractor's responsibility".
"We are confident we can deliver," he said.
The board recommended the council approve the contract today so work could commence.
For more on the stadium saga click here.
Dalziel opened the meeting with words of advice to councillors.
"This is not a straightforward decision to make, it is not an easy decision to make," she said.
"There are a range of factors … the diversity of communities we represent and their interests."
Dalziel said the council must also take a "sustainable development approach" and consider carefully the "reasonably foreseeable needs of future generations".
They also had to balance competing interests.
"You must exercise your vote based on your assessment of how this best represents the interests of the district as a whole," said the mayor.
"The responsibility lies with each and every one of you individually."
Key themes from the public submissions were shared with the council.
"They're fed up of missing out on events because of the shortcomings of the temporary stadium," a council staffer told councillors.
"Just get on with it … without any further delays."
Submitters were "prepared to shoulder a rates increase if that's what it takes to get the facility built".
People suggested ticket surcharges, contributions from sporting bodies and neighbouring territorial authorities, the sale of assets and fundraising campaigns as other ways to obtain the dollars needed to pay for the facility.
"They're sick of having to travel to other cities for events and would prefer to spend their money locally, which they can't do at the moment," the council staffer outlined.
She said some felt they were missing out on economic and social benefits and most felt Te Kaha would "pay for itself over the long term".
Those against the stadium largely worried about the impact on low-economic households including rates increases for people who could not afford to attend events at the stadium.
They also worried about further future budget blowouts.
Some also had concerns about climate change and environmental impacts.
Others suggested upgrading the current temporary stadium rather than building Te Kaha.
They worried the city would "struggle" to regularly fill the 30,000-seat stadium - particularly after the pandemic and the "new normal" in New Zealand because of the Covid-19 virus.
A number worried that the stadium would push the cost of living in Christchurch to a level that was "unliveable" and others wanted the council to "live within its means" and not borrow any money for the project.
In terms of the design, some were worried the arena was too big, did not "need" a full roof and may be "inappropriate" for the needs of the city in terms of sports fixtures and events.
"They were concerned the needs of some people were being prioritised," said the staffer.
"There was some suggestions we should reconsider the location."
Earlier, Central City Business Association spokeswoman Annabel Turley pushed the council to make "an aspirational" decision today.
"It's time for the council to show leadership and recommit to Te Kaha without further delays," she said.
"It would be a world-class facility that the city and region would be proud of for generations to come.
"We are the biggest city in the South Island, without the arena it would mean missed opportunities to the city and the region will be left behind. Cantabrians will miss events."
Turley said the arena had been "promised to the people of Christchurch" and the council needed to step up and keep its word.
She said not only would the stadium provide entertainment and cultural opportunities - the build would lead to vacant and derelict sites in the central city being developed, which would in turn have major economic benefits for the area.
It would also create jobs and new businesses.
"There is no cheaper time to build Te Kaha than now. We strongly believe that the only viable option for the council is to proceed with the project as approved last year," said Turley.
"The people have spoken. The numbers are there
"The options to pause or to stop it are not viable.
"Deliver us a fit-for-purpose world-class facility that will benefit Christchurch, Canterbury and the future generations.
"To make any other decision … would put the future of Christchurch at risk.
"We need a world-class stadium for our world-class city."
Hospitality New Zealand spokesman Peter Morrison sang his submission to the tune of John Lennon's Imagine.
"Imagine there's a stadium," he opened.
"Imagine all your people, sharing this with the world … You may say we are dreamers, but we're not the only ones - 27,000.
"I hope today that you'll join us and the city will move on as one."
Another HNZ representative said Te Kaha would "cement Christchurch as desirable place to live".
"It will help attract more business and residents and obviously that means more ratepayers.
"And more ratepayers offsets any rates increase."
She implored the CCC to make an "exceptional decision" in "exceptional times".
"This is your chance to leave an exceptional legacy for the city," she said.
"Do it once, do it right, vote yes for today … Remember, it will never get any cheaper than it is today."
Crusaders and Canterbury Rugby also made submissions.
They said the council today "have the privilege" to make a decision that will "make Otautahi whole again".
They said the name Te Kaha "said it all".
"Be strong. Decisions like this are never straightforward. We encourage council to adopt the option to proceed," said one representative.
He said the new stadium would add "exceptional value for decades to come with massive economic and social payback".
CRFU chief executive said Canterbury rugby was severely missing out by not having a stadium.
The current temporary stadium was not fit for international events or women's rugby - both of which were crucial.
Concerts, sports and cultural events were also sorely missed in Christchurch.
He said already a whole generation had missed out on the memories a multi-use stadium offered.
That was a tragedy for the city and needed to be remedied to make Christchurch a destination people want to visit and spend time in.
In 2010 and 2011, the Christchurch quakes irreparably damaged AMI Stadium - formerly Lancaster Park.
The plan to create a covered multi-use arena was put forward by a Government panel in 2012.
That plan detailed how local and central government would foot the bill.
The projected cost was $470m.
But that cost later rose to $533m, and in recent months the Christchurch City Council revealed the proposed design had blown its budget again.
The cost then spiked to $683m - with the $150m increase being blamed on rising international costs in materials and construction.
The price hike sparked a public consultation last month and the CCC received 30,000 public submissions about the project.
Of those 77 per cent of people were in favour of meeting the extra costs.
A further 8 per cent supported a "pause and re-evaluate" approach and 15 per cent wanted a complete halt to the stadium's construction.
Councillors had three options ahead of today's meeting: to vote to invest the additional $150m to enable the project to continue as planned; stop the project altogether; or pause and re-evaluate the project.
The design and construction submission for Te Kaha - on which councillors based their decision - was revealed to the public on Tuesday.
Project chairman Bragg said the design and construction submission had been thoroughly reviewed and he recommended the council enter into the fixed price contract.
"That figure includes sufficient contingency to cover any issues that might emerge during the build," he explained.
"The fixed price means that ratepayers will be protected from any further cost increases."
In signing the contract the CCC will need to add $150m to its current budget for the arena.
Bragg said on Tuesday that if that happened rates would need to increase by a net 1.24 per cent.
"Overall, building the arena will cost the average residential property $144 a year between 2025 and 2027," he explained.
"After then, the amount they will need to pay will decrease slowly over 30 years as the debt is repaid."
The report also revealed that if the CCC voted to stop the project there would be $40m in "sunk costs that it will be unable to recover".
In 2021, the council decided to slash the stadium's capacity by 5000 to 25,000 in response to the rising cost - then did a U-turn after a public outcry.
Motorists are advised to take care around the area.