Mayor’s column: Trafalgar Centre costs
Nelson Mayor Nick Smith. Photo: File.
I share the community’s passion for our NBS Nelson Giants, the oldest team in the National Basketball League (NBL).
I have been to hundreds of games, cherish the memories of their championship wins and share the team’s pride in Nelsonians who have gone on to be Tall Blacks.
My wife, Linley, and I are season ticket holders. I am, with Councillors, determined to resolve the uncertainty over the costs of the Trafalgar Centre to ensure the Giants’ future.
The Trafalgar Centre was built in 1972 with a combination of Council and community funds. The upgrades in 2009 and 2017 cost $20 million and were funded by loans. The facility costs Council about $2.5 million per year with interest, depreciation and insurance the big expenses, offset by $500,000 in user fees. Ratepayers are currently subsidising 80% of these costs or $2 million per year.
Council set the objective after the upgrade in 2017 to run it as its premier venue and contracted CLM to manage it. Council was looking for savings for ratepayers when the contract came up for renewal last June and agreed to an exclusive food and beverage contract for CLM. This approach is common at other premier venues around NZ.
We erred in not consulting with users. Council did not appreciate that the Giants depended on donated food and beverage products for a significant portion of their funding. We renegotiated last year a contract variation at Council’s cost to ensure the Giants could continue for the 2025 NBL season.
CLM does a good job in managing the Trafalgar Centre and attracting national and international shows. However, the costs are too high for the Giants and events such as this weekend’s Dancing for a Cause. We need to find a way that maximises commercial revenue while making it more affordable for local events.
Council’s immediate priority is to get a solution to ensure the future of the Giants. We then need to find a better approach for beyond June 2027, when the contract comes up for review, that maximises use, works for the community and keeps costs affordable for ratepayers.