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Facing rising costs for the new Canterbury Multi-Use Arena, Christchurch City Council has approved a new design direction for the venue that will reduce its capacity from 30,000 to 25,000 seats.

Councillors and senior staff attended an extraordinary Council meeting yesterday morning to agree the design change to the venue after it was publicly revealed the original preferred concept, which could have up to 30,000 seats, would have been over budget by up to $131.4 million.

A majority of Councillors endorsed the staff recommendation to lower the number of seats which will see the new venue now have a smaller footprint than its initial concept, with seating for 25,000 and the ability to accommodate 36,000 for concerts.

However, the new design will not include the possibility of temporary seating.

The new design direction approved by the Council will feature a U-shaped concourse and space for a ‘stage pocket’ at its northern end.

In making the change, the Council cited scope changes from the initial investment case and the rapidly escalating price of steel and shipping costs worldwide since the start of the COVID-19 pandemic.

The budget for the venue is now $473 million, with the Council to provide $253 million and the Crown to put in $220 million.

Backing the reduction in size, staff from Besix Watpac NZ, which is leading design and construction, advised Councillors that crowds going to stadiums tended to be reducing.

Following the decision, Christchurch Mayor Lianne Dalziel advised “the design direction we have approved today provides a clear way forward and will result in Christchurch getting a fit-for-purpose covered arena befitting the largest city in the South Island.

“The future of entertainment is changing, with the advent of esports and the global decline in attendance at sporting fixtures. This was evident before the global pandemic. We need to compete with high-definition livestreams into the comfort of people’s own homes, so the experience of being in an arena needs to be special.

“While the arena will have a smaller footprint than the initial concept that was used to establish the investment case for the arena, it will still have seating for 25,000 and the ability to accommodate 36,000 for a concert so Christchurch will be able to attract the type of large-scale events that we want to see here.

“We’ll be able to offer a premium arena experience and host major concerts, cultural events, exhibitions and sporting fixtures that will delight and entertain our residents and visitors to the city.”

Following the decision, New Zealand news website Stuff reported Peter Morrison, President of the Canterbury branch of Hospitality New Zealand, saying the group had mixed feelings about the agreement.

They were “disappointed” the seating capacity would be lower than originally thought but were also “glad” it was tracking to be built on time as it had already taken too long.

Canterbury Employers' Chamber of Commerce Chief Executive Leeann Watson said she too was disappointed and believed the council was “compromising the outcome of what should be a real asset to the city”.

She said the lower capacity would likely limit the city’s ability to host big international sporting events and music acts.

Stuff also reported that the Council will now have to pay a larger fee to secure major All Blacks matches now, as New Zealand Rugby has said 25,000 seats would be too small for major matches, unless a “substantial” incentive fee was provided.

On Friday last week, Murray Strong, who served as Chair of the company overseeing the construction of the stadium, resigned from the role.

Stuff noted that there were disagreements between senior council staff and the council-owned company that Strong was Chairman of.

With one role, that of project director for the venue, to be disestablished, Strong’s successor is set to be appointed in September.

Images: Concepts for the new Canterbury Multi-Use Arena. Courtesy of Christchurch City Council.

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