Risks to theatre ‘in hand’
Hamilton ratepayers won’t be asked to dip into their wallets if the proposed Waikato Regional Theatre strikes problems.
Elected members have been presented with a risk assessment report on the $74 million project and given assurances the project is well in hand.
Ratepayers have chipped in $25m towards the cost of the theatre build, which is due to begin in February.
Sean Murray, council general manager of venues, tourism and major events, said conditions written into a funding deed protected ratepayers’ money.
Plans for the 1300-seat theatre were changed this year to ensure the auditorium avoids disturbing an urupa. An appeal lodged in the Environment Court by hapu¯ group Nga Mana Toopu o Kirikiriroa relates to issues around mana whenua status.
The theatre will be owned and governed by the Waikato Regional Property Trust.
‘‘Even if we execute the funding deed, there are certain conditions that the trust has to meet in order to trigger the receipt of the actual money,’’ Murray told the council strategic risk and assurance committee.
‘‘And one of those [conditions] is all the regulatory compliances being achieved, the thing about the urupa delay, everything like that. No money goes out until all that stuff is cleared up.’’
Momentum Waikato chief executive Kelvyn Eglinton said a mediation hearing was set down for next Monday to discuss the outstanding issues.
Momentum Waikato has led the funding drive for the regional theatre, with $69m already secured.
Waikato Regional Property Trust chairman Ross Hargood said it had a ‘‘robust process’’ in place to identify risks to the theatre project. Any new risks would be flagged with council and mitigations put in place.
‘‘Some of them are just construction risks that would normally happen on any project,’’ he said.
‘‘In light of that fact, is it fair to say that in the event a significant problem occurs, do you believe that Hamilton City Council would have some moral obligation to step in and finish the project?’’ councillor Ewan Wilson asked. ‘‘If so, should we as an organisation be ring-fencing a quantum in our long-term plan?’’
Eglinton said such a move was not necessary: ‘‘The whole point was not to have that requirement on council ... At the moment we are $69m towards a $74m project [and] we have got a plan for the $5m.’’