Events centre cost explodes

By REBECCA DEVINE in Rotorua
Work on $25 million project to start next week

The cost of Rotorua's new energy events centre has skyrocketed but work will still begin next week.

The Rotorua Energy Events Centre, which will be built on to the existing Sportsdrome, is now expected to cost just over $25 million.

But additional funding from two of the main contributors means the work can get under way.

Late last year it was announced the cost would be more than the projected $16 million. Until this week the events centre was expected to cost $21 million.

The ever-increasing cost is being put down to costly delays.

However those involved with the project are confident the latest costing is accurate and the building will come in at, or below, $25.1 million.

In response to the increasing construction costs both the council and the trust have increased their funding by $2.5 million.

Mayor Kevin Winters revealed the extra cost at a special council meeting earlier this week.

He said while it was going to cost the council more than first expected, the ratepayers were still paying less than 25 per cent of the total cost of the building.

Never before in New Zealand had ratepayers contributed so little to such a project, Mr Winters said.

The amount of funding that had been gifted was unprecedented too, he said.

"This is an 18-month project that we can finally get to the sharp end of the pencil on."

Mr Winters said he was grateful for the support of the trust and its generous donations.

The idea of building the new centre only became a reality after the trust announced it would give $10 million in June 2003. Trust chairman and former mayor Grahame Hall said the organisation was absolutely committed to making the centre a reality.

"So I'm delighted that our own very strong financial position means we are able to increase our funding for this very important community facility."

Mr Hall said he wanted the facility to be one every person in the community felt proud of and the rest of the country viewed with "considerable envy".

"One of the things we're adamant about is avoiding cutting corners with this project, in terms of quality."

A ceremony will be held next week to bless the land and turn the first sod, with work expected to be finished in the middle of next year.

The centre will include seating for more than 3000 - three times as many as the Sportsdrome now caters for. A mezzanine floor area would be able to be converted to either three or five "breakout" rooms for events such as conferences, and another room would be able to seat about 720 in a "classroom-style conference layout".

The centre is expected to create up to 350 jobs.