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Thread: $8m payout over nib Stadium

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    Immortal Contributor The InnFORCEr's Avatar
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    $8m payout over nib Stadium

    The West Australian
    EXCLUSIVE Gareth Parker State Political Editor The West Australian
    April 3, 2014, 2:55 am


    The chief of the Department of Sport and Recreation warned the Barnett Government that a 2011 heads of agreement deal with Nick Tana's Allia Venue Management to run nib Stadium in East Perth would expose the State to significant risks.

    The West Australian can reveal the Government is liable for an early termination payment of $8 million to Allia after it opted out of its deal to manage nib Stadium 10 years before it was due to expire.

    Sports Minister Terry Waldron yesterday refused to detail the value of the payment but told Parliament taxpayers forked out $1.9 million to Allia in December to compensate it for lost revenue because of disruption from the construction of the taxpayer-funded $90 million northern and eastern grandstands.

    A further $1.33 million compensation claim, associated with pitch replacement works, is yet to be settled.

    According to documents obtained by Labor under Freedom of Information laws, Allia was entitled to terminate the heads of agreement by midnight, March 12 next year. The "early surrender provision" would leave the State liable for a payout based on an agreed valuation of Allia's business at nib Stadium.

    In question time, Mr Waldron said the State was liable to Allia for "residual value in the balance of the contract".

    Allia said it believed termination was "in the best interests of the State and the sporting codes that the State now manages the Stadium for the future".

    "We had the objective that the (sporting) codes wouldn't be worse off after the redevelopment," Allia chief executive Peter Bauchop said last night. "Under our agreements and methodologies for calculating fees . . . we are not in a position that we can ensure that."

    Allia's original management contract for the rectangular stadium was signed with the Town of Vincent, which owned the old Perth Oval.

    In 2011, with the State committed to spending $90 million on a redevelopment, the Department of Sport and Recreation was seeking to renegotiate the heads of agreement to improve the State's position, FOI documents show.

    "This has been a very invidious position for us," DSR chief Ron Alexander wrote in an April 2011 email. "(Allia) have employed the Liberal Party lobbyists to work on Govt for them.

    "Trying to ensure that we develop a strong negotiating position has been difficult with (redacted) dealing directly with the Premier's office and our minister's office at will.

    "We have never been given the authority to get on and ensure the community's $90m plus is wisely spent."

    Labor's Rita Saffioti said: "The Barnett Government is paying over $100 million to Serco for a hospital with no patients, and now it appears millions to Allia for not operating a stadium."

    http://au.news.yahoo.com/thewest/a/2...r-nib-stadium/

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    Legend Contributor Alison's Avatar
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    Another lovely example of a senior, knowledgeable public servant's "frank and fearless", well-balanced, 'putting-the-interests-of-the-State-first' advice being ignored and outgunned by 'know-it-all', 'I-have-a-vested-interest' lobbyists ably assisted by 'must-keep-my-seat-at-all-costs' politicians??

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    travelling_gerry's Avatar
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    But we got a Stadium!

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    Senior Player Muddly's Avatar
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    Well half a stadium.

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    A Force Field! Better then a Force OVAL

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    Immortal jargan83's Avatar
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    Quote Originally Posted by Muddly View Post
    Well half a stadium.
    Need to get rid of the heritage listing on the brick monstrosity so they can finish the ground!

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    Legend Contributor Alison's Avatar
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    True I guess!

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    Senior Player Muddly's Avatar
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    I went to a meeting last year at the Department of sports and Rec. Was told that Rugby WA needs to get with the program. We are building a state of the art facility in Burswood and that no more redevelopment would be taking place at NIB.

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    Immortal Contributor shasta's Avatar
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    Quote Originally Posted by Alison View Post
    Another lovely example of a senior, knowledgeable public servant's "frank and fearless", well-balanced, 'putting-the-interests-of-the-State-first'
    You may have had a slightly different view had you been involved with TWF's "We need corners" campaign Ali.

    PS. Just saw Mudly's post. Perhaps things have not changed much.

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    Legend Contributor Alison's Avatar
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    Yeah, with my rugby hat on I agree we needed what we've now got - and I love it! But with my WA citizen hat on, I hate the way so much 'politicking' goes on when it comes to spending public money. The greater good goes out of the window and the vested interests get pushed to the top far too often - and I hate it!

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    Quote Originally Posted by Muddly View Post
    I went to a meeting last year at the Department of sports and Rec. Was told that Rugby WA needs to get with the program. We are building a state of the art facility in Burswood and that no more redevelopment would be taking place at NIB.
    Like it was ever going to be any different the moment they went to a "phased" development and the new clubrooms mysteriously vanished from the scope of the Eastern stand...

    I agree with the DSR, the Force needs to get with the program. It is obvious that the moment it is built, RWA is going to come under pressure to move. So they need to be well prepared rather than sit back and defend, particularly with respect to the contract they would be prepared to sign. They should go into discussions with a well thought out and cohesive contract already in hand, otherwise what is the point of having lawyers. Two things in particular I would want to see are:
    - Like the AFL, that they are no worse off. Something along the lines of the same ground rent as NIB, and any decline in corporate attendance or membership over the first three years underwritten for six years to cover for the effect of leaving a rectangular ground and reverting to an oval.
    - Specific clauses covering the use of the moveable stands. My suggestion would be one failure to deploy allowed per year (to cover equipment failure), a second incident resulting in refund of the ground rent (i.e free use), and all subsequent instances being penalised at the value of ground rent (i.e they pay us the ground rent). If they install it and promise they'll use it, should be no problem surely?

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    Immortal Contributor The InnFORCEr's Avatar
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    Is this the same State government that put an opening roof on Perth Arena which requires State Planning Approval prior to the roof being opened? Hope moving some seats will be easier

    I have seen the latest of plans for new stadium (currently under review again) and there were more than 70 corporate suites, much like the top row of Westpac Stadium in Wellington

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    Last edited by The InnFORCEr; 03-04-14 at 16:19.
    80 Minutes, 15 Positions, No Protection, Wanna Ruck?

    Ruck Me, Maul Me, Make Me Scrum!

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    Did they have magnifying windows or telescopes? They won't be moving any closer to the action.

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    Legend Contributor brokendown gunfighter's Avatar
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    but closer to the bar,Andy

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    Legend Contributor Alison's Avatar
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    I thought Burswood was going to have retractable seating so we could "have corners" for rugby & football games???

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