Team NZ’s big compromise

DANA JOHANNSEN

Team New Zealand has abandoned hopes of a permanent waterfront home in order to keep the 36th America’s Cup in Auckland.

Auckland Council’s governing body is expected to give the go-ahead on a new site plan for the seven America’s Cup bases at an extraordinary meeting tomorrow, ending six months of protracted negotiations between local and central government and Team NZ.

The agenda report for the meeting provides further details on the surprise new deal struck between the Kiwi syndicate and the council, revealing Team NZ’s new home will be a temporary one.

The Council will withdraw its resource consent application for the Wynyard Basin option once the new plan, which is the latest, and final, iteration of four base plans for the waterfront considered by the three parties, is signed off.

The existing plan currently out for consent proposed that Team NZ be permanently based in a new purpose-built facility on Hobson Wharf. Under the new plan, Team NZ will be based in the existing Viaduct Events Centre on Halsey Wharf.

According to the document, the lease agreement provides for Team NZ to occupy the VEC for two America’s Cup cycles, whether the team participates as defender or challenger in the AC37. But Team NZ will be required to vacate the VEC in 2024 after the second America’s Cup event.

Auckland Council owns the VEC as part of its network of regional facilities, generating net revenues of $3.5-$4.0 million per annum. This revenue would be foregone from the start of the Team NZ lease on October 1 this year until March 1 2022, at which point the rental arrangement would be reviewed.

The loss of revenue will form part of the Council’s $98.5 million contribution to the America’s Cup. The contribution includes $57.2 million of capital expenditure, and $41.3 million of operating expenditure as the council’s share of the $212.4 million budgeted to host the America’s Cup.

Council officials have determined the VEC to be ‘‘almost entirely fit for purpose for ETNZ’’, having been designed for marine use.

‘‘In all options that have been considered since August 2017, all syndicates would require new buildings. There is cost saving and efficiency in considering the use of an existing building,’’ the agenda report states.

‘‘In particular, the use of the VEC allows ETNZ to set up a base ahead of the launching and testing of its first AC75 yacht early in 2019.’’

Team NZ will need to make some structural alterations to the building to allow them to launch their boats directly into the water, but Council officials believe these changes ‘‘will not adversely affect the operation of the facility, in fact may enhance the use in the future’’.

Team NZ will be required to ‘‘make good’’ on any internal alterations to the building when they vacate the premises.