Discussion begins on operating models for new Cromwell facility
The Cromwell Community Board has begun to discuss options about how the new Cromwell memorial hall and events centre under construction in Melmore Terrace, could operate.
At the community board meeting on Tuesday (17 September), Central Otago District Council Group Manager – Community Experience David Scoones gave a workshop presentation which covered the operating model, operating costs and debt servicing, possible different uses, and the next steps in the discussion.
Revenue from year one of operation was suggested to be about $100,000 from a mix of community and commercial use increasing to $550,000 by year six, this would be dependent on the operating model chosen.
Indicative costs based on research undertaken on other similar sized event facilities, estimated the cost of operating the facility, depending on the operating model, to be $1.7 million excluding debt, insurance and depreciation, with suggested funding to come from Council and external grants, commercial and retail revenue.
The various operating models to be discussed include a Council-run facility, or a Council-controlled organisation (CCO) running the facility, or under an operating lease.
The community board talked about ways that the flexible spaces in the facility could be used such as renting hot desks to organisations and businesses.
Mr Scoones thanked the board for the opportunity to present a summary at a fairly high level to give members time to absorb the information, and that their feedback would help formulate content for the next presentation to the board at the November meeting.
“The idea is to socialise these costs into the Long-term Plan discussions that are coming up during October-November.”
The workshop can be viewed on the Council website: Meeting Recordings - Central Otago District Council (codc.govt.nz).
