In the race to lose

Photo / Brett Phibbs

One opponent of a controversial $29 million velodrome mooted for Cambridge but struggling for funding says central Government and the upcoming election are behind a stubborn reluctance to let it be built in Palmerston North or Auckland instead. With cycling enjoying its most successful era ever - our cyclists are these days regular and credible contenders at world championship and Olympic level - plans were hatched for a National Cycling Centre of Excellence to reflect that success and generate more.

But the Waikato region is currently being canvassed to see if ratepayers want the velodrome. Waikato regional councillor and former mayor of Hamilton, Russ Rimmington, says he does not know why Sparc and the government are clinging to the Cambridge bid to build the velodrome, as it is still about $10 million short of the money required.

Both Palmerston North and Auckland say they have the money and could build the velodrome. "I have an opinion - and it's based on the fact that it's getting close to the election. I know that [Minister of Sport] Murray McCully is keen on this [a velodrome at Cambridge] and I'd suggest you have to look no further than the marginal seat in Hamilton.

McCully wants a big tick before the election so they can point to what is being done in the region." Hamilton East houses electorate MP Tim McIndoe with a slender majority of 1618. The velodrome has become a vexed issue in the Waikato-Bay of Plenty region, with communities sometimes hotly divided on the subject. The Waikato has had its nose bloodied by costly sporting events and facilities of recent times. A botched upgrade of the Rugby Park floodlights; the loss making world rowing championships and upgrade of Lake Karapiro; the Hamilton V8s event; and the new $70mClaudelands sports centre have all had negative impacts on ratepayers; such that those costs - and others - have contributed to Hamilton City Council rates being pushed up by 8 per cent.

The ire of ratepayers, Grey Power and even the man in the street have been stirred by the velodrome issue - with protests, placards and some fiery council meetings. Some estimates say the Waikato Regional Council could increase its rates next year by up to 3 per cent if they commit to the $6m being sought by the velodrome principals, although different rating options are being considered that could lessen that blow. Some of those close to the issue dismiss the idea that electoral advantage is behind the push for Cambridge - saying the velodrome is so unpopular that building it in the Waikato would be counter-productive.

"I find that statement [that he is backing Cambridge for election purposes] grossly insulting, to me and to Sparc," said McCully. "The matter is entirely in Sparc's hands. People saying these sort of things might want to reflect on the fact that there will be about 10 losers and only one winner [various regions bid for the velodrome] and how that works out for a politician.

"Sparc has run this whole process completely at arm's length from the government - which is how it has to be when such big tenders are called. All Sparc have done is advise me when certain milestones are reached. If the people of the Waikato want to have the velodrome in their region, it is their decision to make."

The Home Of Cycling Trust, chaired by international rower and yachtsman Rob Waddell and including such sporting luminaries as Sarah Ulmer and Dame Susan Devoy, won the battle against many regions (including Hawke's Bay and Wanganui) - with closest competition coming from Palmerston North (who propose a velodrome built at Massey University) and Auckland (proposing a velodrome built at the Waitakere Trusts Stadium). The latter is thought to be next in line.

Winning permission from sports funders Sparc was the easy bit. The HOCT has since had to find the money to build and operate the velodrome at St Peter's School, Cambridge. After a long and frustrating trawl around councils in the Waikato-Bay of Plenty region, HOCT has come up short.They have an extension until September 14 to prove they can stump up the cash.

The HOCT has found money hard to come by. Of the $29m required, they have so far been able to race to lose "bank" only$7m from Sparc (an allotment also available to Auckland and Palmerston North, should they win the bid), $3.2m from other sources, $1m from the Waipa District Council and a sponsor's loan of $2.5m. They were knocked back by Hamilton, before asking for $4m from the Bay Of Plenty Regional Council and $6m from the Waikato Regional Council.

Bay of Plenty decided not to consider the request until next year - which will be long after Sparc's deadline has expired. Counting the Waikato Regional Council funds (yet to be agreed) means HOCT have only $19.7m and, if the Waikato money is not forthcoming, will likely spell the end of the Cambridge bid.

The Waikato Regional Council decided to go to the public - a process that concludes on August 22 - to see if they are in favour of the allocation of council funds to the new velodrome. However, Hamilton Citizens & Ratepayers Association president John Easto, in a recent statement, questioned the way the WRC is testing public feeling.

"The so-called 'special consultation' process with its public is pretty 'ordinary'," he said. "There has been no notification directed to the public via their letterbox on this significant issue which is the normal way councils . . . aid a fair process. Instead you will need to submit online or ask Regional Council to post you a form - hardly easy or 'special', we feel."

The two rating options being considered were (a) the whole of the Waikato region to pay equally a flat rate of $3.18 per year for 20 years or (b) those deemed to get the most value from the proposed velodrome (Waipa, Hamilton, Eureka and Tamahere) to pay $3.94 and the rest of the Waikato region (those furthest away) $2.66 every year for 20 years.

The Herald on Sunday has seen supporting documentation by HOCT which includes the contention that the velodrome will bring $11.55m into the area. Such facilities rarely make money.

Even Waitakere's Trusts Stadium (acknowledged as a role model) makes only a small annual profit and such economic impact studies have gained bad press lately; many regarded as pie-in-the-sky estimates used by those seeking approval for such projects. "The same thing was done with the V8s," said Rimmington.

"The council [Hamilton] was told there would be $30m coming out of the V8s and they spent a lot of ratepayers' money for a four-day event. In the end, of course, we never saw it.These econometric or infometric studies promise all sorts of cost-benefits but most of them are not worth the paper they are written on."

The $11.55m figure is not being quoted when surveying the public as the WRC is doing a peer review of the $11.55m figure that could not be completed before the public polling.

Palmerston North mayor Jono Naylor, spokesman for the Palmerston North bid, said: "Clearly Sparc has a preference to build the centre in the Waikato at this point. It was incredibly disappointing for us and I guess we can only speculate on the reasons they prefer the Waikato when we have the funds and what we believe is a very good proposal for a multi-sport venue which will work long-term for the region and the country.

We could have been turning the soil by now [if they had won the bid]." Naylor said the effect on Palmerston North ratepayers would be minimal: "You can't build something like this without costs to ratepayers, but in our case, we had already earmarked that money for development of internal court space."

The Palmerston North proposal, like Auckland's, advocates building netball and basketball courts along with the velodrome to help defray costs; Cambridge's is cycling-only, considered an unrealistic model when it comes to operating funds. Supporters of the scheme say the new velodrome would fit hand-inglove with Lake Karapiro, with both venues benefitting from being part of a high-performance hub and attracting sporting events.

Rimmington says the sports stars heading the HOCT are "all fine people but I don't know they have the right idea about commitment. You can't just have a name and expect the money to roll in. You have to get out there and hustle and do the sausage sizzles. It's hard work."

It remains unclear why, with money so hard to find in the Waikato, Sparc are giving HOCT so long to raise the money instead of shifting the project to Auckland or Palmerston North. Sparc CEO Peter Miskimmin said: "This has been a robust, exhaustive process throughout. This is a once in 25-30 year thing and we wanted to get it right; to build it only once. The Cambridge bid won because of a number of things - the connection with rowing and the ability to form a high-performance hub in the region; a connection with the local community; the better training environment for cyclists; and they [HOCT] best understood the vision of Bike New Zealand.

"They are our preferred location and organisation to work with so, on that basis, it is not unreasonable to give your preferred supplier some extra time if that is what is needed.We would do the same thing with anyone else." "But why all the insistence on this thing?" said Rimmington.

"A lot of people are opposed to it, but there is a great deal of political will to see it through - there doesn't seem to be any sense in it.

"I know from painful experience that if you are not well funded from the start, you are always playing catch-up. It costs a lot of money and becomes a white elephant.

"I don't know why they just don't give it to Palmerston North or Auckland. Both of them have got all the money lined up and both of them could build it fine. "Waitakere is really where it should go - it's a big area, they have successful infrastructure to hang it off, good road access and an international airport. That's where it should go but some political people are busy writing their own script."