Council Against Funding Arts Centre to Tune of $18-24 Million
Exclusive: Last Monday a council team made its proposal on Arts Centre funding, insolvency and its further commercialisation to councillors and the Mayor. The NZR digs in.
However, staff left the door open for “a conditional underwrite or smaller targeted subsidy” to be considered, with an apparent intention to ensure the Arts Centre stays solvent. Over a year the council would “Work with the Trust…to reach an acceptable solution”.
They did not indicate the size of the subsidy or underwrite but it would be less than the $1.8 to $2.4 million per annum the Arts Centre requested.
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As for the former Dux, Dickinson believes it wouldn’t bring to the Arts Centre “its most lucrative lease income” and that another “brew bar-restaurant” was no longer needed, with income coming in from other Arts Centre venues. But if a bar and restaurant is off the table, what are its plans for the derelict site?
Staff have advised against funding the Arts Centre to the tune of $18 to $25 million, a council power point proposal from last Monday shows. This recommendation sits amongst a wide-ranging assessment of the current Arts Centre operation model and the divergent views on the way forward, as the threat of insolvency, and it being handed the precinct, hangs over the city centre.
Staff recognised the Arts Centre’s contribution “to the City Centre as a nationally significant heritage precinct” but acknowledged the “Council continues to receive substantial requests for funding, from a wide range of organisations” and that it was finding it “often very difficult to accommodate”.
However, staff left the door open for “a conditional underwrite or smaller targeted subsidy” to be considered, with an apparent intention to ensure the Arts Centre stays solvent. Over a year the council would “Work with the Trust…to reach an acceptable solution”.
They did not indicate the size of the subsidy or underwrite but it would be less than the $1.8 to $2.4 million per annum the Arts Centre requested.
In what appears to be a veiled reference to the Arts Centre going insolvent and Council assuming control, staff believed that “Council and partners can manage the site”. “In the event of uncertainty Council could work with tenants and sector stakeholders to secure the future of the Arts Centre,” wrote staff. “This,” they declared, “is not the preferred option”.
On this slide, headed up “Averting Uncertainty”, it refers to -
“Heritage Buildings & Grounds.”
“Corporate Services.”
“Depreciation, R&R – Future development and restoration.”
“Leases & tenancies.”
“Events, bookings, programming, vibrancy, opening-up and community use.”
“Partners playing to their strengths.”
While the Arts Centre was adamant “all options have been explored,” council staff believed “more time to consider options” was needed to “avoid impacting 2024/25” and recommended five primary ways the Arts Centre could cut costs and reduce its reliance on rate-payer funding.
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