Case Study: Manukau Pacific Events Centre
The project
The Pacific Events Centre is being developed by the Manukau Pacific Events Trust to fill a business, social and cultural gap in the Manukau region. This is one of New Zealand's fastest-growing business and residential regions, with a distinctive mix of Pacific Island, Maori, Asian and European cultures. The centre, which will have an iconic architectural exterior reflecting its Pacific associations, is designed to be built in two stages:
Stage One: An indoor sports arena and a function area for events and conferences. Scheduled for completion in 2004/05.
Location: The centre will be situated just off the southern motorway, near the Manukau City exit.
Purpose of the review
To give an independent expert assessment of the business case for the Pacific Events Centre so that Manukau City Council has a clear understanding of any potential funding or operational risks involved before making a decision to commit further funding for this major project.
Target market:
The Pacific Events Centre will meet the need for a mid-sized regional centre catering mainly for the local community. It is not intended to compete with established local sports venues or community centres, or with large metropolitan venues like the Auckland's Aotea Centre. Instead it will be positioned to provide a venue for Manukau City events and gatherings for which there is at present no suitable local venue. Some examples:
• Conferences for the growing number of businesses in Manukau City, surrounding business parks and Auckland International Airport
• Lifestyle events, exhibitions and mid-sized home shows
• Banquets for more than 400 people
• Cultural events such as the Pasifika Festival
• Major sports events, particularly tournament finals or one-off contests
How we carried out the review:
We reviewed the business case proposed by the Trust and its advisors as part of a peer review team commissioned by the Council to look at all aspects of the project. Our brief followed up an earlier peer review we had undertaken of the Trust's findings by conducting a second, more detailed review. We:
• Reviewed the projected numbers and types of events, the estimated number of attendees and the food and beverage spend by comparison with our knowledge of other event venues;
• Assessed whether these assumptions and the revenue projections based on them were reasonable;
• Reviewed the projected operating expenses based on our knowledge of the operating cost structures of other event venues;
• Checked that the business case was complete and in accordance with best commercial practice and identified all the risks and critical success factors.
Follow-up:
Our findings were presented to the Council as part of the wider peer review team's report. The team attended presentations and workshops for Councillors at which findings and recommendations were discussed and queries answered.
Outcome:
Our client, Manukau City Council, decided to proceed with funding a share of the project subject to the Trust agreeing to provide the Council with further information and updates. As a result of our review, the Council is more aware of the potential operational and financial risks – for example in relation to capital costs and projected sponsorship revenue. Councillors understand that the events centre is unlikely to be self-funding, and they are clearer about the terms and conditions they require in relation to their funding commitment.
Please click here to download Horwath HTL Ltd Brochures.
|
 |
|
|
|
