Plans for $1.8 billion Auckland waterfront stadium unveiled

Thursday, 18 October 2018

Promoters of a dramatic sunken $1.8 billion stadium on Auckland's waterfront consider it a once-in-a-lifetime opportunity, but whether it is really 'free' is unclear.

The 50,000-seat covered stadium would be built by a private firm in return for the rights to build 2500 dwellings and commercial buildings nearby, as well as the right to re-develop the current Eden Park site in Kingsland.

A group called The Auckland Waterfront Consortium, led by property valuer Dave Wigmore, described the plan as 'zero cost to ratepayers and taxpayers' – but support was still needed.

'The council has to take a leadership position with this project or it can't happen,' Wigmore said.

The Auckland Waterfront Consortium has launched an ambitious proposal that would see a 50,000-seat fully enclosed stadium built alongside a redeveloped Bledisloe Wharf.

* New Auckland stadium pricier than Eden Park rebuild, but favoured option**

*** Auckland CBD stadium could be on the cards again

An artist's impression of the Bledisloe Wharf stadium.

* Warriors want new waterfront stadium with the Blues, Auckland Council interested**

Nearly half of the stadium would be built on the seabed next to the wharf, in order to leave enough space for a Wynyard Quarter-style property development with apartments and commercial buildings needed to help fund the project.

The consortium would not reveal the area of seabed needed, but said a larger area of seabed would be cleared when other wharves were removed.

It would be partially built into the seabed to lower the above-ground height.

The apartments adjacent to it could house 6000 people, with a similar number working in commercial buildings.

The proposal has been worked up over the past 18 months and would involve dramatic changes to the city waterfront and the way Ports of Auckland operates.

The proposed stadium would sit alongside a residential and commercial property development.

Around 14ha of port land would be contributed, along with the demolition of Captain Cook Wharf.

The consortium said Ports of Auckland's vehicle importing trade would have to go elsewhere if Bledisloe Wharf was used.

'The interests of Ports of Auckland are the most difficult to accommodate, but we believe there are solutions there,' said Mike Sage, a partner at law firm Simpson Grierson which was part of the consortium.

Wigmore believed the vehicles might be accommodated elsewhere on the port site or moved to another port.

'It can't be located at Onehunga Wharf – the port has just sold that to [council developer] Panuku but we don't see why that can be unwound.'

The consortium has roughly valued the land that would need to be contributed at $365 million.

Wigmore put a value of about $115 million on the port bundle, including Bledisloe and Captain Cook wharves – a value based on its use as a port, not as prime residential or commercial land.

'We're not wanting to overpay for them because there's a lot of value we're bringing to the table which is being used to deliver the stadium,' he said.

The promoters valued Eden Park at about $250 million, which was similar to the figure in the Eden Park Trust Board accounts but did not reflect its value as a housing site.

They said the next step would need a facilitation agreement with the council or Crown to do more detailed and costly investigation.

'The source of that funding is still being looked at – possibly philanthropic investment, crown and council investment,' Wigmore said.

It was not yet clear how much public contributions would cost.

Michael Sage of Simpson Grierson and Dave Wigmore, chair of the consortium proposing a waterfront stadium.

The promoters said the waterfront land would be owned by a New Zealand entity and leased to the developer, similar to the concept at council-owned Wynyard Quarter.

They said the Crown and or the council could be part of that, and perhaps iwi.

The long-term revenue loss from Ports of Auckland losing two wharves is unknown, and the council-owned port company was saying little.

'Any decision on use of port land for a stadium and residential development is a matter for our owner, Auckland Council,' it said in a statement.

A 2017 report by consultants NZIER found the loss of the vehicle import trade, which is based at Bledisloe and Captain Cook wharves, could cost 10,000 Auckland jobs.

The report, commissioned by Auckland Mayor Phil Goff said the loss would cut the value of Ports of Auckland by $170 million, and reduce annual revenue by $15 million.

A group that campaigned against past harbour reclamation and wharf extensions was cool on the concept.

'We favour a long-term strategic plan that encompasses the entire waterfront for a post port future,' Stop Stealing our Harbour co-founder Michael Goldwater said.

Ngāti Whātua o Ōrākei was open to the plan, even though the building of the stadium partly on the seabed was 'not preferable.

'Everyone should be interested if the thing can be developed at no cost to taxpayers and ratepayers,' the trust's deputy chairman Ngarimu Blair told Stuff.

The promoters said they hadn't read the almost million-dollar report commissioned by Goff assessing the feasibility of a downtown stadium.

A redacted version of the report released last year highlighted the difficult economics of building and running stadia.

'When private sector partnerships are used to deliver stadium developments, there is typically still a large component of upfront and/or ongoing funding required from the public sector,' consultants PWC said.

'Stadiums do not generally generate enough 'traffic' to create revenue and return, to the level that private sector investors would require in the normal commercial context.'

Bledisloe Wharf is proposed as the site of the $1.8 billion stadium.

The new consortium said its model was different as it removed the upfront cost and included development revenue from homes and commercial buildings on two sites.

The promoters have work to do to negotiate the difficult political landscape around stadia in Auckland.

The chair of the Trust Board which owns the country's premium stadium Eden Park met the promoters briefly, but had not seen a detailed proposal.

Doug McKay said his focus was on making Eden Park financially viable for as long as it remained Auckland's leading stadium.

Five of Eden Park's trustees are government appointed following a $190 million taxpayer funded upgrade for the 2011 Rugby World Cup.

The Minister of Sport, and also Finance, Grant Robertson was also not privy to the details.

“The Minister has not met with the consortium but is open to doing so at some point,' a spokesperson said.

Goff has publicly championed the idea of a downtown stadium and is encouraging private sector proposals.

However, he has chosen not to personally meet the promoters, instead sending his staff to two meetings with them.

Goff wouldn't be interviewed by Stuff, but said in a statement he was keeping his distance.

'There are no plans to fund work on this proposal,' he said.

'Stadiums cannot be a priority ahead of our more pressing needs in transport, housing and environment.'

Goff welcomed the debate the new proposal might spark, and the views that Aucklanders might have of it.