Sky City tender in the ring

By Phil Boeyen, ShareChat Business News Editor

Monday 4th March 2002

It'll be at least another three weeks before Sky City (NZSE: SKC) learns if a proposal to expand its convention centre in Auckland has been successful.

The entertainment group's proposal is one of nine expressions of interest that the Auckland City Council has received for a major convention centre in the city.

Sky City outlined its own plans for a $37 million centre last July. However a few weeks later the council said it would be calling for building tenders, prompting SKC to upgrade its design to meet the council's specifications.

The revamped design would require the council to put in up to $20 million but that would be considerably cheaper than the estimated $40 million required to building a centre from scratch and is likely to garner some favour with pro-business mayor John Banks.

The council says the expressions of interest will be evaluated over the next three weeks and a report will be forwarded to a combined committees of council, to be held later this month.

"If any proposal finds favour with the combined committees of council, it will be included in the draft annual plan and long-term funding strategy. This will be released for public submissions on April 19," the council says.

Councillor Scott Milne says a convention centre is just part of the council's aim of moving Auckland forward.

"We asked the private sector to put forward their ideas, and indicate how they expected the council to be involved in a convention centre and it is exciting to receive such a wide variety of ideas and proposals.

"The establishment of a convention centre in the city will be an exciting step forward in the city's bid to regain its rightful place as a leading Australasian city."

Sky City has offered a profit sharing arrangement with the Auckland City Council if it wins the tender although it says it will continue with its own centre regardless of the outcome.

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