Chamber challenges council over Theatre Royal upgrade

Wednesday, 29 May 2024

The South Canterbury Chamber of Commerce has issued a challenge to Timaru’s council to put a last-minute halt on plans for the Theatre Royal and Heritage Hub development to allow for a new option at a third of the proposed price.

Speaking to the chamber’s submission to the Timaru District Council’s Long-term Plan at the second day of hearings, on Tuesday, board member Scott McAuley told councillors that the $57.1 million budgeted for the project was “a significant amount of money in anyone’s books”.

McAuley, who was supported by chamber chief executive Wendy Smith, president Gordon Handy and fellow board member Heather Harding, said $57.1m was “roughly twice what PrimePort turned over last financial year”.

He said the council’s proposed spending on the project, while asking for a significant rate increase and a lift on its debt cap, was comparable to the average homeowner saying: “I can’t quite pay my mortgage, I’m struggling to pay the bills, but I’m going to buy a bach.”

While the chamber was “absolutely supportive” of developing cultural institutions and buildings and facilities for the community, it considered the project to be fiscally irresponsible, he said.

“There are some local businessmen of stature in South Canterbury – I’m sure he won’t mind, Gary Rooney would be one of them – who are suggesting we can get this facility done, in still around the same time frame that you’re proposing, for significantly less outlay from council,” he said.

He said there were good examples of successful public-private partnerships in the region and gave the recently completed CPlay project and the development at Fraser Park as good examples.

McCauley suggested the council should approach local construction businesses for input on the project.

“A lot of these businesses, that are experts in this space, are suggesting that we could get a comparable facility for a third of the price.

“There’s a couple of businesses, in particular, that are stressing that for the same outcome this project could be done for a third of the price.”

McAuley’s challenge to the council came after councillor Stu Piddington asked him to get business owners together “and see what they can deliver for us”.

Scott said he was “100% confident” that if the council was prepared to commit to waiting for businesses to provide an alternate proposal, the challenge would be accepted.

“If the council is genuine about looking at a greenfields build, and a design and build, I am more than confident that we will be able to rally the business community to put forward a proper proposal to council.

“What we won’t do as a chamber, though, is go and waste our members’ time if we’re paying lip service.”

Piddington said it would be a good option for councillors to talk about on Wednesday as they deliberated over submissions.

Councillor Owen Jackson directed a question to McAuley, saying the project had already been delayed over the past six years.

“So, if we delay the project, how long should we be delaying that project for and how much do you think those costs are going to rise in that time?”

Scott said: “Until such time as we’ve got something that’s fiscally responsible and viable for council, we defer, right?

“So, this is an optional – this isn’t drinking water, this isn’t keeping the lights on at the hospital, this isn’t getting kids to school.”

He was not suggesting delaying, deferring, or cancelling the project, he said.

“What I’m suggesting is that there are other options to deliver this fantastic facility that you’re proposing, but with a much smaller price tag for the ratepayers of Timaru.

“My view would be, stick to the current timeline but do it with some an engagement so it doesn’t need to be driven solely by the council.’’

Smith told the hearings the chamber was also “deeply concerned” about the rates increases that are proposed: 15% in 2024-25; 12% in 2025-26; and 12% in 2026-27.

“We’re concerned for our businesses and the crisis that businesses are facing with the cost of doing business, but we’re also very concerned for our lower-income earners, and those on fixed incomes, that it would be very hard to achieve that.”

In May 2023, CBD property owners voted to establish a levy-funded collaborative scheme, known as a business improvement district or BID, that would aim to breathe more life into Timaru’s central business district.

A levy that funded the BID would be collected through the council’s rating system and passed on to the BID organisation to fund activities.

Smith said that while the chamber did not disagree with the work, it understood the council was looking at rating differentials next year.

“We would suggest that perhaps that’s held over until then because the commercial sector, when you look at the rating differentials, pay a significantly larger amount.’’

Speaking in support of the project, Aaron Segar, of START, Save Timaru’s Arts and Rebuild our Theatre, read out a long list of those who had started their careers at the theatre over the years including Laura Bunting, Zach Parore, Kaylee Bell, the Exponents, and Aubrey Haive.

“So many people from all works of life,” he said.

Segar said those who said the district did not need a theatre were being “very shallow-minded”.

“Seeing shows out of town is not affordable for many people.

“I’d rather spend my money in this district.”

Pye asked Segar if it was a theatre he wanted, “or the Theatre Royal?”

He said it had been too long since the theatre had been closed.

“We want a theatre; we need a theatre.

“This plan is in place. They are incredible plans.”