2015 -2025 Strategic Plan Event &FunctionCentr S

T ADIUM Regional Council Taranaki 1 Yarrow Stadium STRATEGIC PLAN 2015 - 2025

three yearcycle. The StrategicPlanwill bereviewedona Contents Pg 18 Pg 10 Pg 9 Pg 6 Pg 5 The MasterPlan Goals Vision the TeamMeet Background and improvecustomerexperience. maintain stadiumcompetitiveadvantage 7. Facilitydevelopmentinitiativesto 6. Improvefinancialperformance. of Taranaki tothestadium. 5. Strengthentheconnectionofpeople and promotethe Taranaki brand. 4. Optimisevisitorandeconomicimpact 3. Maximisetheuseof Yarrow Stadium. 2. Hostkeycommunityevents. international events. 1. A programmeofnationaland 3 Yarrow Stadium STRATEGIC PLAN 2015 - 2025

are presentedinamasterplanunderGoalSeven. of thesebeingcapitaldevelopments. Together thecapitaldevelopmentprojects Strategies throughwhichgoalswillbeachievedarepresented withanumber This StrategicPlanpresentsavisionandgoalsforthefutureof Yarrow Stadium. which canbeusedtoattractevents Yarrow Stadium. and implementationbudgets.NPDCalsocontributestotheMajorEventsFund, for thestadiummanagement,includingdevelopingassetmanagementplans and two TRC electedmembers,haveagovernanceanddecisionmakingrole A JointManagementCommittee,comprisingoftwoNPDCelectedmembers and TRC fundsthelong-termmaintenanceanddevelopmentofstadium. manages, generatestherevenueandfundsoperationsof Yarrow Stadium and longtermmaintenancedevelopmentofthe Yarrow Stadium.NPDC TRC andNPDChaveenteredintodualfundingpartnershipsfortheoperations and NewPlymouthDistrictCouncil(NPDC). people of Taranaki, workinginparticularwith Taranaki RegionalCouncil(TRC) asset usedforrecreation,sportingandculturalactivitiesthebenefitof management, operationandpromotionof Yarrow Stadium asacommunity of the Trust istopromotetheeffective andefficientmaintenance,development, The propertyisownedbythe Taranaki Stadium Trust (the Trust). The purpose car park. two grandstands,mainsand-basedgrassfield,threeotherfieldsanda were completedin2010,raisingthecapacityto25,500.Facilitiesnowinclude added andconsiderablemodernisation.Furtherenhancementstothevenue completed in1947. A majorredevelopmentin2002sawnewgrandstands The venuewasfirstdevelopedasarugbygroundin1931,withthestadium a shortdistancefromNewPlymouth’s centralareainthesuburbofWestown. Yarrow Stadiumis Taranaki’s premieroutdoorsportingvenue,locatedwithin Background 5 Yarrow Stadium STRATEGIC PLAN 2015 - 2025 Meet the Team

Taranaki Taranaki New Plymouth Stadium Trust Regional District Council Council

Owner of Yarrow Stadium Responsible for the long- Responsible for the assets. A Council- term maintenance and operation of Yarrow controlled organisation of development of Yarrow Stadium including delivery TRC. Provides funding Stadium through the of the approved long-term to NPDC for the delivery receipt and approval of development and major of approved long-term long-term development maintenance programmes, development and major and major maintenance securing of events at maintenance programmes. programmes from the stadium and delivery Contracts, through a the Yarrow Stadium of event management. management agreement, Joint Committee and At a governance level with NPDC for the subsequent instruction to NPDC also receives and operation of the stadium. the Taranaki Stadium Trust approves the long term to fund the development development and major and major maintenance maintenance programme. programme. Provides The Council also provides annual funding of administrative support to $876,000 to the Taranaki the Yarrow Stadium Joint Stadium Trust for the Committee. long-term development and major maintenance programme. Holds and controls the Taranaki Stadium Trust as a Council-controlled Organisation. and operations. programming ofevents Stadium securingand for allaspectsof Yarrow support andleadership include strategicoversight, role beexpandedto budgets. Proposedthat and associatedannual maintenance programme development andmajor plan andlong-term the assetmanagement for thedevelopmentof members. Responsible and two TRC elected elected members Made upoftwoNPDC Committee Stadium Joint Yarrow events at Yarrow Stadium. hosting ofmajorrugby have akeyroleinthe Rugby FootballUnion Stand. Taranakithe TSB Stadium withofficeswithin tenant anduserof Yarrow all levelsin Taranaki. Key for thedeliveryofrugbyat rugby unionresponsible organisation andprovincial A regionalsports Football Union Taranaki Rugby Events Fund. management oftheMajor of servicesincluding events throughanumber supporting businessesand agency withtheroleof tourism development Taranaki’s economicand Taranaki Venture 7 Yarrow Stadium STRATEGIC PLAN 2015 - 2025

Goals V 7. 6. 5. 4. 3. 2. 1. smart useoftechnology. presentation andmanagementthroughtheearlyadoption and spectators,whichisachievedthroughsuperioreventfacilities, A stadiumthatisaquality experienceforeventpromoters,participants A stadiumthatisloved bysportsfansandthelocalcommunity outdoor fieldforteamsportscodes. A stadiumforbothmajoreventsandcommunitythepremier and internationalsportsentertainmentevents. The bestregionalstadiuminNewZealandthatregularlyhostsnational advantage andimprove customer experience. Facility developmentinitiatives tomaintainthestadium’s competitive Improve financialperformance. Taranaki totheStadium. Strengthen theconnectionofpeople Taranaki brand. Optimise visitorandeconomicimpactpromote the Maximise theuseof Yarrow Stadium. Host keycommunityevents. A programmeofnational andinternationalevents. ision

9 Yarrow Stadium STRATEGIC PLAN 2015 - 2025 1. A programme of national and international events

Yarrow Stadium has a history of hosting a number of major events including All Blacks Matches, FIFA U20 World Cup 2015 games and motor sport shows such as Crusty Demons. We want to grow the number and diversity of major events in order to deliver the best possible major event programme on the number one field. Achieving this goal will assist the goals of optimised visitor and economic impact and positive promotion of the Taranaki brand (goal four) and strengthen the connection of the people of Taranaki to the stadium (goal five).

Strategies through which this will be achieved include:

• Increase the amount of quality space for hospitality hosting.

• Ensure the stadium complies with minimum facility specification requirements of the targeted codes being rugby, football, rugby league and cricket.

• Redevelop field number two or three with an artificial turf to enable training and other games to continue during times when field number one is unavailable due to a major event. External funding will be sought for this project which will determine its timing along with the Trust’s ability to contribute funding. This will be reviewed as part of the Master Plan and Asset Management Plan review in 2018.

• Continue the collaborative “Team Taranaki” approach for event proposal development. achieved include: Strategies throughwhichthiswillbe the caseoffieldnumbertwo. preparation requiredforamajoreventorsimplyfieldcapacitybeingreachedin the mainstand. At times the availabilityoffieldscanbediminishedby hiring thefacilityforsmallereventswhenonlychangingfacilitiesarewithin community eventsprogrammeislimited.Reasonsforthisincludethecostof an experiencewewantmoreofthecommunitytoexperience.Currently Playing, performingorviewingeventsataninternationalstandardstadiumis 2. Hostkeycommunityevents • • • 2018. reviewed aspartoftheMasterPlanand Asset ManagementPlanreviewin their timingalongwiththe Trust’s abilitytocontributefunding. This willbe * Externalfundingwillbesoughtfortheseprojectswhich willdetermine stadium forcommunitysportandevents.* therefore reducingtheneedsandcostsassociatedwith openingthemain Develop newamenityfacilitiestoservicefieldstwo, three andfour greatly increasedcapacityofthisfieldandaqualityplayingexperience.* Redevelop fieldnumbertwoorthreewithanartificialturfwhichwillprovide explore opportunitiesforexternalsubsidisation. Work withcommunitygroupstominimisethecostofvenuehireand/or 11 Yarrow Stadium STRATEGIC PLAN 2015 - 2025 3. Maximise the use of Yarrow Stadium

We want the overall community utilisation of Yarrow Stadium as a venue to increase and be more regular. As well as outdoor fields, Yarrow Stadium has a number of indoor spaces suitable for functions and other community activities.

Strategies through which this will be achieved include:

• TSB Stand concourse and Legends Lounge development – polish/new floors, partitioning and speakers to improve flexibility and quality of the spaces.

• Implement an event booking system that provides an efficient utilisation of the venue and an efficient booking process.

• Develop and implement a strong marketing strategy. achieved include: Strategies throughwhichthiswillbe events. promote the Taranaki brandaspartofhostingstadiumeventsandattractmore visitor andeconomicimpactworkcollaborativelywithstakeholdersto injected $4.53millionintothe Taranaki economy. We wanttooptimisethe rugby testbetweenthe All BlacksandFranceattracted6,500visitors through increasedvisitorsandpromotionofthe Taranaki Brand.In2013,the Events hostedat Yarrow Stadiumhaveanimpactontheeconomyofregion brand impact andpromotetheT 4. Optimisevisitorandeconomic • • • aspect ofstadiumoperations. promote collaborationonpromotionofthe Taranaki brandaswellother Consider theestablishmentofa Yarrow Stadium Advisory Groupto Develop andimplementastrongmarketingstrategy. industry toattracteventsinshoulderorlowvisitorseasons. Investigate opportunitiestoworkthetourismindustry, particularlyair aranaki 13 Yarrow Stadium STRATEGIC PLAN 2015 - 2025 5. Strengthen the connection of the people of Taranaki to the stadium

Pride and passion go hand in hand with sporting and other entertainment events. As well as the events that occur within, we want Yarrow Stadium to be a venue that is loved by sports fans and the local community. Being within walking distance of the New Plymouth Central area and with the back drop of Mount Taranaki there is great opportunity for people to feel a connection. People visiting the stadium more often, with more major events, community events and other functions will be an important step in achieving this goal. There are also other aspects to consider such as the stadium being home to Taranaki Rugby which in itself sees thousands of people visit for all levels of the sport and how this connection can be built upon.

Strategies through which this will be achieved include:

• Investigate options for development of a space for display of memorabilia and/or theming in some stadium areas

• Develop a strong brand strategy that includes a social media aspect. achieved include: Strategies throughwhichthiswillbe subsidy neededfromtheratepayerisgoal. increased eventhostingwillresultincost,reducingtheoperation at Yarrow Stadiumisprojectedtoincreaserevenue,andwhileinsomecases Stadium ismetbyNPDCthroughratesfunding.Overtimegrowingutilisation aim ofreducingthecosttoratepayer. Currentlytheoperationalcostof Yarrow Yarrow Stadiumtoberunasefficientlyandeffectively aspossiblewiththe An importantgoalforthemanagementofanycommunityasset.We want performance 6. Improvedfinancial • • • • event costs. Ensure facilitiesprovidethemostefficientoperational set-uptoreduce Ensure appropriateagreementsinplacewithstadiumtenants. along withothercommercialpartnerships. Increase opportunitiesforcommercialsignagerevenueandnamingrights, Develop acomprehensivebusinessplan. 15 Yarrow Stadium STRATEGIC PLAN 2015 - 2025

• • • Other facilityinitiativesinclude: identify facilityprojectsandfutureareasoffocus. from spectatorstosportscodes. A 10-yearmasterplanhasbeendevelopedto initiatives wewanttoprovideanimprovedexperienceallstadiumcustomers advantage andisuptodatewithstadiumtrends. Through facilitydevelopment facility developmentisneededtoensurethemaintainscompetitive To bethebestregionalstadiuminNewZealand,aprogrammeofongoing improve customerexperience competitive advantageand to maintainthestadium’s 7. Facilitydevelopmentinitiatives and identifythefacilitiesassociatedneeds. dispensation for Yarrow Stadiumtohostinternationalcricketinthefuture Work with NewZealandCrickettoexplorethepossibilityofICC case forasecondartificialturfinthefuture. facilities forfootballat Yarrow Stadium,includingconsideringabusiness Continue toworkwithCentralFootballontheprovisionandaccess options forapartnershipapproachtodesignanddelivery. Initiate aprojectforthereplacementoffloodlightingwithLEDincluding 17 Yarrow Stadium STRATEGIC PLAN 2015 - 2025 Major Projects

GATE 2 2016 / 17 Redevelop the upper part of Yarrow Stand or TSB Stand A to create increased hospitality space and new amenities area. H MARATAHU STREET Est. $1.87 million

GATE 1 Redevelop outer areas where needed to improve B customer experience, including gate 1 configuration B and main entrance arrival signage. Est. $300,000 NORTH B TSB Stand Legends Lounge TERRACE C Sound proof partitions, upgrade toilets, bars, kitchen, C ceiling, lights and memorabilia space. D #2 FIELD Est. $400,000 TSB BANK STAND I 2018 / 19 A Venue reception, entrance, office and heating upgrade. TUKAPA STREET G D F Est. $350,000

STAR YARROW C Upgrade lights 200 lux for fields 3 and 4. STAND GYM E Est. $450,000 A Current floodlight replacement/ upgrade for No.1. GATE 4 SPORT F TARANAKI Est. $545,000 G J WESTOWN GATE 5 2019 / 20 COMMERCIAL Review current layout of public food and beverage area CENTRE SOUTH SEATS G if new Yarrow Stand amenities/corporate block is not built. #3 FIELD GATE 3 Est. $300,000 E 2023 / 24

SANDERS AVENUE Maratahu Street Streetscape/premier entrance development. #4 FIELD H Est. $468,000 E TIMING OF PROJECTS NOT DETERMINED SCHOOL I Redevelop field No. 2 with an artificial turf and 500 lux appropriate floodlighting, including carpark, driveway and staff car parks. Est. $3.05 million

Develop new amenity facilities to service fields 2, 3 and 4 CLAWTON STREET J and storage and gym relocation. Est. $925,000

External funding will be sought for these projects which will determine ¯ their timing along with the Trust’s ability to contribute funding. 2015 STADIUM Master Plan This will be reviewed as part of the Master Plan and Asset Management Plan review in 2018.

COMMERCIAL WESTOWN CENTRE 2

0 ¯ AVENUE SANDERS

1 5

TUKAPA STREET STAR GYM SCHOOL GATE 4 STADIUM H G YARROW STAND A G TERRACE NORTH B GATE 1 Master Plan F #4 FIELD SOUTH SEATS E

MARATAHU STREET B C TSB BANK GATE 3 STAND D A C

CLAWTON STREET GATE 5 #2 FIELD #3 FIELD J E I TARANAKI SPORT GATE 2 H D G B A C E F J I Major Projects Redevelop Est. $300,000 Est. $450,000 Est. $300,000 and Est. $545,000 Redevelop Est. $1.87million to Est. $468,000 Est. $400,000 ceiling, lightsandmemorabiliaspace. Sound Est. $925,000 and storage andgym relocation. if new Yarrow Standamenities/corporateblockisnotbuilt. Review currentlayoutofpublicfoodandbeverage area Est. $350,000 Venue reception,entrance,officeandheating upgrade. Develop new Est. $3.05million driveway andstaffcarparks. 500 lux appropriate customer 2018 /19 Redevelop 2016 /17 Management Plan review in 2018. This will bereviewed aspartof the MasterPlan and Asset their timing along with theTrust’s abilitytocontribute funding. External funding will besought fortheseprojects which will determine TIMING OFPROJECTSNOTDETERMINED Maratahu StreetStreetscape/premier 2023 /24 2019 /20 Current floodlight replacement/upgrade forNo.1. Upgrade lights 200luxforfields3and4. TSB create main Stand proof increased experience, the entrance outer field Legends

amenity facilities partitions, upgrade toilets,bars,kitchen, upper No. areas hospitality floodlighting, including carpark, arrival part Lounge 2 including where of with signage. Yarrow to space andnew amenitiesarea. needed an

service gate Stand artificial entrance 1 to fields configuration or improve TSB turf 2, development. 3 Stand and and 4 19 Yarrow Stadium STRATEGIC PLAN 2015 - 2025

Asset Management Plan 2015-2025

Yarrow Stadium Asset Management Plan September 2015 Page 1 of 45 Quality Record Sheet

Document: Yarrow Stadium Asset Management Plan (YS AMP)

Date: September 2015

Status: Final

Version: 1.0

Originator(s): Julie Johns Yarrow Stadium Coordinator NPDC Jeremy Wichman Team Leader Asset Management NPDC

Reviewer(s): Miranda Petersen Advisory Strategy NPDC Anna Crawford Infrastructure Planning Lead NPDC

Authorised for release: Final

Page 2 of 45 September 2015 Yarrow Stadium Asset Management Plan 1 Executive Summary Vision • The best regional stadium in New Zealand that regularly hosts national and international sports and entertainment events. Yarrow Stadium is Taranaki’s premier outdoor sporting venue, located • A stadium for both major events and community events, and the within a short distance from New Plymouths central area in the suburb premier outdoor field for team sports codes. of Westown. The venue was first developed as a rugby ground in 1931, with the first stadium completed in 1947. A major redevelopment in • A stadium that is loved by sports fans and the local community. 2002 saw new grandstands added and considerable modernisation. • A stadium that provides a quality experience for event Further enhancements to the venue were completed in 2010, raising promoters, participants and spectators, which is achieved the capacity to 22,420. Facilities now include two grandstands, main through superior event facilities, presentation and management sand-based grass field, three other grass fields and a car park. and through the early adoption and smart use of technology.

The property was transferred to the Taranaki Stadium Trust (the Trust) in 2013. The purpose of the Trust is to promote the effective and efficient Key Levels of Service (Goals) maintenance, development, management, operation and promotion of Yarrow Stadium as a community asset used for recreation, sporting 1. A programme of national and international events. and cultural activities for the benefit of the people of Taranaki, working in particular with the Taranaki Regional Council (TRC) and New 2. Hosting key community events. Plymouth District Council (NPDC). 3. Maximise the use of Yarrow Stadium.

Under the Trust’s Deed and the Management Agreement, NPDC 4. Optimise visitor and economic impact and promote the Taranaki manages, generates the revenue and funds the operations of Yarrow brand. Stadium; and the TRC funds the long-term maintenance and 5. Strengthen the connection of the people of Taranaki to the development of the stadium. A Joint Management Committee, Stadium. comprising of two NPDC elected members and two TRC elected members, have a governance and decision making role for the 6. Improved financial performance. Stadium management, including recommending to the Trust approval 7. Facility development initiatives to maintain the Stadium’s of an annual budget and asset management plan. NPDC also competitive advantage and improve customer experience. contributes to the Major Events Fund which can be used to attract events to Yarrow Stadium.

Yarrow Stadium Asset Management Plan September 2015 Page 3 of 45 The 10 year 2015-2025 budget for the funding and expenditure costs for Trust Establishment Yarrow Stadium provides the following highlights: In December 1999 the Trust, a charitable trust and Council-Controlled • Eight major capex projects, including the development of an Organisation under the Local Government Act, was established by increased hospitality space. Total estimated cost of these NPDC. The aim was to develop, manage, operate and promote a projects is around $4.7 million. Taranaki Events Centre complex at what was then known as Rugby • Minor capex projects and various minor renewals. Total estimated Park, New Plymouth for recreation, sporting and cultural activities to the cost around $3 million. advantage of all citizens of the Taranaki region.

• Major maintenance will average $200,000 per annum over the 10 The stadium’s initial regional funding of $9.6 million was covered by a year period. combination of uniform charges across the region and targeted rates • Minor Maintenance will average $37,000 per annum over the 10 in New Plymouth and North Taranaki. This arrangement ran from July year period. 2001 to June 2012. In 2002 a major redevelopment saw two new grandstands added, the TSB Stand overlooking the main field’s eastern • For the first five years, half the Trust’s funding from the TRC will be sideline and the Noel and Melva Yarrow Stand on the western sideline. used in debt servicing the new roof project (approx $438,000 per

annum). Yarrow Stadium underwent a significant $1.7m upgrade in 2009/10 to • TRC Long Term Plan proposes that the Yarrow Stadium annual improve the venue to Rugby World Cup standard and increase its contribution of $876,000 is not increased for inflation over the capacity from 17,000 to 25,500. The work included an extensive 2015-2025 time periods. redevelopment of both the northern and southern banks and improved media and coaching box facilities in both stands. History

New security cameras were also installed and the speaker system The venue was first developed as a rugby ground in 1931, with the first upgraded. The main field was fully renovated with new turf, drainage stadium completed in 1947. During 1959 an impressive 35,000 rugby and irrigation. spectators crowded into the venue to watch Taranaki play the British Isles. At that time the venue was a single grandstand. It was not until some 40 years later that the NPDC took over the management of the stadium and redevelopment took place.

The stadium is a personal legacy of the late Noel Yarrow, a pioneering Taranaki baker and businessman and active philanthropist. Noel was a passionate rugby supporter and the major grandstand overlooking the field’s western sideline is a tribute to his support. Yarrow Stadium named as the third best stadium on earth in May 2009 by New Zealand Rugby World magazine behind only Millennium Stadium in Cardiff, Wales and Suncorp Stadium in Brisbane.

Page 4 of 45 September 2015 Yarrow Stadium Asset Management Plan Yarrow Stadium can also host a wide range of events including capital expenditure for the acquisition, replacement, renewal, concerts, sport events, conferences, exhibitions, trade shows, modernisation or expansion of an asset and implements funding conventions, corporate functions, weddings and community events. decisions as required.

The continued development of Yarrow Stadium as a first class facility reflects well on New Plymouth and the Taranaki region. The upgrade and enhancement of Yarrow Stadium will improve the ability to secure iconic international sporting events, but also meet the growing demand for use of the stadium by local community clubs and assist with the national aspirations of organisations such as the Taranaki Rugby Football Union and Taranaki Rugby League (TRFU).

New Management Agreement In June 2013 NPDC transferred control of the Trust to the TRC and the Trust was renamed the Taranaki Stadium Trust (TST) operating as a Council-Controlled Organisation of TRC. A new management agreement was established between the TST and NPDC as the two parties owning and operating the stadium and the Yarrow Stadium Joint Committee (The Committee) was formed to provide local Governance authority input from elected members from both TRC and NPDC.

One of the roles of the Committee is to oversee the preparation of Under the new charitable trust arrangement NPDC continues to asset management plans and annual budgets which have been manage and operate the stadium as it has done since May 2004 and a physically prepared by NPDC as managers of the stadium, and make Projects and Assets Management Direction Group was established to recommendations to the TST whether or not to approve them. The manage and report to the Committee on the planned major Committee may also recommend amendments if it considers that any maintenance and capital expenditure projects for 2012/13, 2013/14, planned or unplanned significant maintenance items are required and 2014/15 and inform the progress with the preparation of the inaugural the costs associated will exceed the budgeted amount in the annual 10 year Asset Management Plan. budget. Such material amendments would require approval from

NPDC, TRC and the TST. One such significant item is replacement of How it operates both grandstand roofs to eliminate the risk of roof sheeting failure In general NPDC manages the day-to-day operation of the stadium during high winds which required additional funding and was ensuring that all equipment and facilities are maintained to a high approved by the TST in September 2014. quality standard. Amendments to the Committee’s Terms of Reference and NPDC funds all general maintenance and operational costs of the Management Agreement in 2015 include increasing the committee’s stadium and in return receives all revenue generated, including role to include considering other aspects including hosting of events, revenue from hireage and operation of the stadium and other operations and progress of the strategic plan. commercial arrangements. The TST funds all major maintenance and

Yarrow Stadium Asset Management Plan September 2015 Page 5 of 45 The advisory group will work collaboratively on the advising on the international sporting codes and policies, the recent introduction of a development and implementation of the Yarrow Stadium Strategic family zone and a bouncy castle demonstrates a desire to look at other Plan and the asset management plans, monitoring the operational ways to enhance the venue and encourage a more family friendly performance and hosting of events at Yarrow Stadium. environment.

Current situation This accolade was in no small part due to community support, the mountain backdrop and providing a “spiritual home of rugby”. A sport The primary tenant of the 22,420 capacity stadium is the Taranaki and recreation report in 2007 surveying Taranaki residents highlights the representative team in New Zealand’s principal rugby union importance of rugby to Taranaki. Some key points from this research competition, the ITM Cup. From 2013, the stadium is now host to the reveal that: Chiefs team as part of a new alliance, after Taranaki cut their ties with the Wellington-based Hurricanes. • Sixty-six per cent of Taranaki residents watch rugby, either live or televised. The Trust has agreed to fund this programme of maintenance and • Over 85 per cent of Yarrow Stadium users viewed it as either very development. Included in this development is the following 10 major good or good value for money. projects: • Generally, studies show that participation in team sport has 1. Redevelop the upper part of Yarrow stand or TSB stand to create significant benefits for communities, including: increased hospitality space and new amenities area. Regional pride, status and reputation. 2. Redevelop the outer areas, where needed, to improve customer experience, including gate 1 configuration and main entrance Enhanced community image and attractiveness for people to arrival. visit or relocate to the region. 3. Upgrade toilets, bars, kitchen, ceiling, lights and memorabilia Positive role in youth development, community development space to the Legends Lounge. and in bringing people together for all parts of society. 4. Upgrade venue reception/entry, office and heating. (Note: the above information is taken from “The Value of Rugby to Taranaki” report released by Venture Taranaki and TRFU, Thursday 17 5. Upgrade lights 200 lux for fields three and four. September 2009) 6. Current floodlight replacement/upgrade. Rationale 7. Review current layout of public food and beverage areas if new Yarrow Stand amenities are not built due to hospitality expanding The Taranaki Regional Council Empowering Act 2001 provided specific in TSB Stand powers to undertake, implement, encourage or maintain any services, works or facilities that are for the recreational or cultural well-being of 8. Develop Maratahu streetscape/premier entrance. Taranaki, or that are for preserving or encouraging the reasonable enjoyment of the physical and cultural heritage of the Taranaki region. Many of the activities under this Act are, in general allied to the TRC’s Community Benefit existing functions and mission. The Act does not alter the TRC’s While infrastructure development has generally been event driven to obligations to fully comply with the accountability requirements of the ensure the stadium complex conforms and is maintained to Local Government Act 2002, but it does provide for the opportunity to

Page 6 of 45 September 2015 Yarrow Stadium Asset Management Plan apply those provisions in ways more appropriate to community needs 2 Asset Description and expectations. It also provides the opportunity for the local authorities and residents of Taranaki to work more coherently with the This section provides an overview of the physical assets situated at TRC, on a range of matters when they are regionally significant, further Yarrow Stadium to that provided in the Local Government Act. Yarrow Stadium has been constructed on Rugby Park, a large block of The TRC provides events, venues, and recreation services to help land located in Westown to the south of the City Centre and to the achieve the TRC strategic intent for the district to create an attractive west of Pukekura Park in New Plymouth. Access is relatively narrow and living environment through providing diverse facilities, infrastructure and restricted because this is a large rear block of land in the middle of an services that are needed to make New Plymouth District nationally and established residential area. internationally a location of choice. The two main access points are off Maratahu Street. There is also rear Contribution to the Community access off Clawton Street to the south and side access to Tukapa The recreation, culture and heritage group of activities under the TRC Street to the west. contributes to community outcomes by ensuring the continuing maintenance and development of Yarrow Stadium as a part of a Stadium Buildings and Capacity prosperous and vibrant Taranaki. Yarrow Stadium improvements mainly comprise the east stand (TSB Stand) plus the west stand (Noel and Melva Yarrow Stand) on the The Yarrow Stadium activity contributes to the Prosperous Taranaki, the opposite side of the main field. Both stands were completed in 2002. Vibrant Taranaki and the Sustainable Taranaki community outcomes by The east stand is the main structure that has some 3,332 seats and is providing community facilities and supporting programmes of activity. built over three levels, with two hydraulic lifts providing access in Yarrow Stadium, along with Puke Ariki and the regional gardens attract addition to the stairways. The west stand has 4,914 seats. visitors and events to Taranaki that it would not otherwise receive. There are three uncovered seating and standing areas: These attractions/events contribute financially to the regional economy (Prosperous Taranaki) and socially/environmentally/culturally (sporting • The south grass embankment that holds 4,000. and cultural events – (Vibrant Taranaki). • The north grass embankment that holds 8,414.

• The south terrace that holds 2,753.

Both embankments have their own entries into each block section and do not form part of our buildings, with egress gates nearby.

Yarrow Stadium Asset Management Plan September 2015 Page 7 of 45 Name Eastern Stand (TSB Bank Stand) Western Stand (Noel & Melva Yarrow Stand)

No. Of Levels Three One Use/Occupation Sports Grandstand, Changing Rooms & Offices Sports Grandstand Food & Drinks Booths Originally 1965, extended in 1991, upgraded in 2001 Year Built (Note up to 80 per cent of the original Structure / 2002 Roof was replaced in 2001) Gross Floor area 8382 m2 2883 m2 Stand Construction Precast units spectator deck on steel raker beam, part reinforced concrete slab on grade and part Roof Light weightii roof on steel framing Walls Reinforced block work internal and external walls. Curtain Wall glazing. Gibraltar board to offices Foundations Steel beams and post and combined shallow and piled reinforced concrete foundations TRFU & NPDC events Offices, Full commercial kitchen, Fit out Changing rooms, Bar areas, Training rooms, Public Public toilets, Storage areas, Food & Drink booths toilets, Storage areas, Food & Drink Booths Condition Good Building Earthquake Rating 75% NBS Seismic Grade B Fire Detection/Protection Fire Alarm systems, Fire Detection systems, Fire Extinguishers & Hose systems

Table 2.1: Stadium Buildings Details

Facilities for food and beverage and toilets are positioned in the nearby stands. For major events additional supplementary catering is positioned near the embankments so patrons do not have to go to the stands for food and beverages and additional toilets. There are secured safety barriers and handrails throughout the space to mitigate the potential for crowd crush, all positioned and engineered

Boundary fencing comprises a variety of fencing types ranging from standard timber residential type to basic farm, batten and wire to more substantial 2.1 metre high hurricane wire mesh fencing with barbed wire above.

Page 8 of 45 September 2015 Yarrow Stadium Asset Management Plan Commercial Venue Capacity supports key operational tasks such as measuring the effectiveness of maintenance programmes or justifying funding requests. The Legends Lounge is on the top floor of the TSB Bank Stand with floor to ceiling window offering panoramic views of playing arenas, back A formal condition assessment for Yarrow Stadium assets has not been fields and Mount Taranaki. Utilised for conferences, meetings, carried out. dinners, presentations and weddings.

NPDC maintenance staff, contractors including Otis for lifts, AHI for Capacity: 400 seated and 500 standing. HVAC, NPE for electrical work, NPDC Roading engineers/Fulton Hogan

for seal condition and BECA engineers for structural work have all Features: Internal speaker system, power, Wi-Fi, portable contributed to the assessment of current condition and resultant input stage, staircase and lift access is at each end of the lounge with direct into the 10-year maintenance and renewal budgets. access to the seating deck. Facilities include two kitchen holding areas, bar and toilet facilities located at each end of the lounge so These discussions focussed on issues such as the following: that the area can be partitioned for smaller functions. • Current age. The Concourse is situated on the first floor of the TSB Bank Stand and • Actual and/or envisaged maintenance and repair programmes. can be used for events such as trade displays, exhibitions, banquets, markets and festivals with more than 1,100m2 of covered display. • Current and future anticipated asset utilisation.

• Asset lives based on current NPDC asset replacement experience Features: Two food and beverage outlets, two smaller bar areas, six at similar locations. toilet blocks, and disabled toilets, two multi-purpose booths that can be used for information or customer services. Ease of access is assured • Generally accepted industry and other relevantly sourced asset for foot, vehicle and disabled traffic. life expectancies.

• Current NPDC asset replacement strategies based on current or Capacity: 800 seated and 1,500 standing. proposed asset management plans.

Asset Condition, Age and Remaining Lives Based on information provided by NPDC staff, Telfer Young Valuers has Asset condition is a measure of the asset’s physical integrity. attributed an effective age for valuation purposes. The effective age Information on asset condition underpins effective, proactive asset takes into account the assets original installation date and any management programmes by enabling prediction of maintenance, upgrades and part replacement or refurbishment since that time and rehabilitation and renewal requirements. considering utilisation and maintenance to date.

Asset condition is also critical to the management of asset risk, because The assumed asset lifecycle assumptions are illustrated below. Using it is linked to the likelihood that the asset will physically fail. the assumed lives we are able to better plan when assets will need

maintenance and renewed/replacement. In addition, asset condition data can make asset valuation and depreciation more robust by improving asset life estimations. Establishing and tracking the condition and performance of assets

Yarrow Stadium Asset Management Plan September 2015 Page 9 of 45 In terms of the assessment of each asset’s remaining useful life, the using the’ judgement’ of experienced operational staff and technical mathematical process of the deduction of current age from contractors. anticipated overall useful life has been utilised. Although a criticality methodology has not been formally developed, Based on the results of such a process remaining useful lives calculated the intention in future is to embed this knowledge into a one to five appear to be acceptable in the case of all assets installed within the Criticality rating score against each asset in the asset management facility again based on current and proposed NPDC Asset system database. The one to five rating will be consistent with the Management Plans in respect of future operational and asset consequence descriptions developed for the risk assessment replacement strategies and requirements. procedure.

Yarrows Stadium Componentised Assumed Lives Examples of assets deemed as ‘critical’ to Yarrow Stadium in relation to potential disruption and risk mitigation include: Componentised Asset Average Remaining Assumed Life Type Life 2013 • Transformer. Any outage will be covered by an onsite hired generator for back up (only hired for major events). Electrical Systems 40 29 • Gas reticulation. A gas leak will require isolating area if possible, if Fire Systems 40 29 not shut main down. Ring plumber if inside venue, outside of Fit out 30 19 venue ring Tenix. Floor Coverings 30 19 • Water main. A water outage will require isolating area if possible, HVAC Systems 30 19 if not shut main down. Ring plumber if inside venue, outside of Lifts & Escalators 40 29 venue ring City care Miscellaneous 30 19 • Sewage Pumps. Always checked before a big event. A failure Plumbed Systems 40 29 would need to shut some or all toilets down, if required. Ability to Roof Cladding 40 29 operate pumps with override. If all fails engage contractor to Security & Access Systems 20 9 pump out tank Site Improvements 35 24 • Sprinkler system (Legends Lounge). An important event may have Structure 80 69 Chubb sprinkler services on site to cover isolation of the system if a breakage occurs. Componentised Average 38 27

• Main Field. Parks Team are on call for any urgent damage repairs Table 2.2: 2013 Asset Life Assumptions (vandalism before a big event). They are also employed onsite during major events. Asset Criticality • Tower Lamps. Spares are kept and regular checks before and Asset criticality relates to the consequence of an asset failing to after each event are carried out. perform its intended function. This is an essential measure for prioritising maintenance and renewal activities. To date, this has been completed

Page 10 of 45 September 2015 Yarrow Stadium Asset Management Plan The stadium has an approved evacuation scheme with trial Yarrows Stadium Assset Values evacuations completed every six months. Replacement Annual Asset Type Fair Value In accordance with the Building Act compliance, Chubb New Zealand Value Depreciation Ltd undertake service requirements for the stadium. Whereby systems Electrical Systems $4,445,000 $2,991,000 $137,400 are checked monthly, six monthly and annually with a building warrant Fire Systems $418,000 $303,100 $10,500 of fitness issued once the compliance schedule has been fully complied with. Fit out $4,717,000 $2,977,000 $154,600 Floor Coverings $300,000 $194,600 $10,000 Asset Valuations HVAC Systems $1,583,000 $1,002,600 $52,800 Regular revaluation of all assets and the assessment of effective lives is Lifts & Escalators $525,000 $381,000 $13,100 a routine task that is undertaken in order to assess changes in service Miscellaneous $727,000 $492,000 $24,200 potential and to meet the Audit Office, International Accounting Plumbed Systems $714,000 $642,600 $23,800 Standard NZ-IAS16 financial reporting requirements. Depreciation is Roof Cladding $1,852,000 $1,342,700 $46,300 derived from the assessed current replacement costs and effective Security & Access Systems $1,070,000 $775,800 lives for infrastructure assets. $26,800 Site Improvements $1,809,000 $1,333,100 $52,700 The table below summarises of the financial value of the Yarrow Southern Terrace Seating $217,000 $184,500 $10,900 Stadium assets. Structure $10,131,000 $8,756,900 $126,600

Note: Valuations are carried out on a three yearly cycle with the next Total $28,508,000 $21,376,900 $689,700 one due by 30 June 2016.

Yarrows Stadium Land Values Key Assumptions and Data Confidence Levels Asset type Area Fair Value 1. Asset inventory is drawn from NPDC’s GIS database and from Land 10.06 hectares $2,500,000 experienced staff. 2. Data quality is deemed moderately well. In the coming year more detailed physical condition inspections of all assets are to Table 2.3: Summary of Yarrow Stadium Assets at 30 June 2013 be done.

Yarrow Stadium Asset Management Plan September 2015 Page 11 of 45 3 Levels of Service 5. Strengthen the connection of the people of Taranaki to the Stadium. The statement ‘Presentation and operation of Yarrow Stadium as one of 6. Improved financial performance. New Zealand’s premier regional sporting stadium and venue’ describes what the community can expect to receive in terms of quality and 7. Facility development initiatives to maintain the stadium’s quantity of service provided. The level of service has corresponding competitive advantage and improved customer experience. activities, performance measures and targets which allows the community to monitor performance. A Programme of National and International Events Yarrow Stadium has a history of hosting a number of major events The main statement is developed at a high level and future including All Blacks matches, FIFA U20 World Cup 2015 games and consideration needs to be given to the value gained from the provision motor sport shows such as Crusty Demons. We want to grow the of more specific service levels. number and diversity of major events in order to deliver the best possible major event programme on the number one field. Achieving A key objective is to match the level of service provided by the asset this goal will assist the goals of optimised visitor and economic impact with the expectations of the users of the service. This requires a clear and positive promotion of the Taranaki brand (goal 4) and strengthen understanding of user needs and preferences. More defined levels of the connection of the people of Taranaki to the stadium (goal 5). service: • Provide users with confirmation that they are getting a good Strategies through which this will be achieved include: value. • Increasing the amount of quality space for hospitality hosting. • Provide a focus for the asset management strategies developed • Ensuring the stadium complies with minimum facility specification to deliver the required level of service. requirements of the targeted sports codes being rugby, football, • Provide a measure of the effectiveness of this Asset Management rugby league and cricket. Plan. • Developing field two with an artificial turf to enable training and • Identify the costs and benefits of the services offered. other games to continue during times when field one is unavailable due to a major event in the future. External funding • Enable users to assess the suitability, affordability and equity of will be sought for this project which will determine its timing along the services offered. with the trusts ability to contribute funding. This will be reviewed as

part of the Master Plan and Asset Management Plan in 2018. Key levels of service (goals) are: • Continuing the collaborative “Team Taranaki” approach for

1. A programme of national and international events. event proposal development. 2. Hosting key community events. Hosting Key Community Events 3. Maximise the use of Yarrow Stadium. Playing, performing or viewing events at an international standard 4. Optimised visitor and economic impact and promote the stadium is an experience we want more of the community to Taranaki brand. experience. Currently the community events programme is limited. Reasons for this include the cost of hiring the facility for smaller events

Page 12 of 45 September 2015 Yarrow Stadium Asset Management Plan when the only changing facilities are within the main stand. At times Optimised Visitor and Economic Impact and Promote the Taranaki the availability of the fields can be diminished by preparation required Brand for a major event or simply field capacity being reached in the case of Events hosted at Yarrow Stadium have an impact on the economy of field two. the region through increased visitors and promotion of the Taranaki

brand. In 2013, the rugby test between the All Blacks and France Strategies through which this will be achieved include: attracted 6,500 visitors and injected $4.53 million to the Taranaki • Working with community groups to minimise the cost of venue economy. We want to optimise the visitor and economic impact and hire and/or explore opportunities for external subsidisation. work collaboratively with stakeholders to promote the Taranaki brand as part of hosting stadium events and attract more events. • Development of field two with an artificial turf which will provide greatly increased capacity of this field and a quality playing experience in the future. External funding will be sought for this Strategies through which this will be achieved include: project which will determine its timing along with the trusts ability • Investigating opportunities to work with the tourism industry, to contribute funding. This will be reviewed as part of the Master particularly the air industry to attract events in shoulder or low Plan and Asset Management Plan in 2018 visitor seasons. • Developing new amenity facilities to service fields two, three and • Developing a comprehensive marketing strategy. four therefore reducing the needs and costs associated with • Establishing a Yarrow Advisory Group to promote collaboration opening the main stadium for community sport and events. As on promotion of the Taranki brand as well as other aspects of mentioned above the timing and funding of this project is still to stadium operations. be determined.

Strengthen the Connection of the People of Taranaki to the Stadium Maximise the Use of Yarrow Stadium Pride and passion go hand in hand with sporting and other We want the overall community utilisation of Yarrow Stadium as a entertainment events. As well as the events that occur within, we want venue to increase and be more regular. As well as outdoor fields, Yarrow Stadium to be a venue that is loved by sports fans and the local Yarrow Stadium has a number of indoor spaces suitable for functions community. Being within walking distance of the New Plymouth central and other community activities. area and with the back drop of Mount Taranaki there is great

opportunity for people to feel a connection. People visiting the stadium Strategies through which this will be achieved include: more often, with more major events, community events and other • Developing TSB stand concourse and Legends Lounge. functions will be an important step in achieving this goal. There are also Polish/new floors, partitioning and speakers to improve flexibility other aspects to consider such as the stadium being home to Taranaki and quality of the spaces. rugby which in itself sees thousands of people visit for all levels of the sport and how this connection can be built upon. • Implementing an event’s booking system that provides an

efficient utilisation of the venue and an efficient booking process. Strategies through which this will be achieved include: • Implementing a strong marketing strategy. • Investigating options for development of a space for display of

memorabilia and/or theming in some stadium areas.

Yarrow Stadium Asset Management Plan September 2015 Page 13 of 45 • Developing a strong brand strategy that includes a social media • Continue to work with Central Football on the provision and strategy. access to facilities for football at Yarrow Stadium including considering a business case for a second artificial turf in the Improved Financial Performance future. An important goal for the management of any community asset, we • Work with New Zealand Cricket to explore the possibility of ICC want Yarrow Stadium to be run as efficiently and effectively as possible dispensation for Yarrow Stadium to host international cricket in with the aim of reducing the cost to the ratepayer. Currently the the future and identifying the facilities associated needs. operational cost of Yarrow Stadium is met by NPDC through rates funding. Over time growing utilisation at Yarrow Stadium is projected to We want to increase the number of major events annually over the increase revenue, and while in some cases increased event hosting will next three years and maintain this utilisation. Over the previous 10 result in increased cost, reducing the operation subsidy needed from years we have had several major events such as All Blacks games, ratepayer is the goal. Rugby World Cup matches and the FIFA under 20 World Cup matches.

For more details on historical major events see Appendix 1. Strategies through which this will be achieved include:

• Developing a comprehensive business plan. Negative Impacts on the Community • Increasing opportunities for commercial signage revenue and From time to time events have negative impacts on sectors of the naming rights, along with other commercial partnerships. community. NPDC actively seeks to address these issues in the most • Ensuring appropriate agreements in place with stadium tenants. appropriate manner.

• Ensuring facilities provide the most efficient operational set-up to reduce event costs.

Facility Development Initiatives to Maintain Stadium’s Competitive

Advantage and improved customers experience.

To be the best regional stadium in New Zealand, a programme of ongoing facility development is needed to ensure the facility maintains competitive advantage and is up to date with stadium trends. Through facility development initiatives we want to provide an improved experience to all stadium customers from spectators to sports codes. A 10 year master plan has been developed to identify facility projects and future areas of focus.

Other facility initiatives include: • Initiate a project for the replacement of flood lighting with LED

including design and options for a partnership approach to

delivery.

Page 14 of 45 September 2015 Yarrow Stadium Asset Management Plan

Negative Impacts Response Strategy Noise from events All events are managed within existing resource consent conditions. Inconvenience caused by road closures All road closures are approved by NPDC after the community has been notified and consulted. Traffic congestion All major event planning includes provision for traffic management plans. Inappropriate behaviour such as vandalism or NPDC works closely with the district’s police and the contracted security provider to ensure alcohol related incidents at major events appropriate security arrangements are in place via the undertaking of risk assessments and planning for major events. Facility maintenance closures which may mean NPDC works closely with the community to ensure minimum disruption. inconvenience for some residents and businesses Waste generated from events All efforts are made to maximise recyclable during major events. 300 120,000 Table 3.1: Negative Impacts on the Community

250 100,000

80,000 200 Trainings Club Rugby/League Community Other 60,000 150 Community Sport Expos Conferences Number of Events 100 40,000 Meetings Number of Attendees Functions Major Events 50 20,000

0 0 2012/13 2013/14 2014/15 2012/13 2013/14 2014/15

Figures 3.1 and 3.2: Number of Events and Attendees at Yarrow Stadium

Yarrow Stadium Asset Management Plan September 2015 Page 15 of 45

Level of Service Actual Target Performance Measure (Key Goals) 2014/15 2015/16 2016/17 2017/18 2018-2025 13 events 11 events 10 events 77 events 1. A programme of national and The total number of major events (by event 13 major events 54,000 70,000 103,000 560,000 international events type) 96,000 attendees attendees attendees attendees attendees 2. Hosting key community events Number of key community events 2 2 3 10* 21 Total community visitation (not including 16,397 16,000 16,000 24,000* 24,000 major events) 3. Maximise the use of Yarrow Number of functions 9 10 10 10 15 Stadium Number of conferences/meetings 26 25 25 25 30 4. Optimised visitor and economic Number of Expos/Exhibitions 2 2222 impact and promote the Taranaki brand Number of Community Sport 14 15 15 15 15 Number of Community Other 0 ---- Number of Trainings 198 200 200 300* 300 Satisfaction with the quality of venues for 5. Strengthen the connection of the entertainment, cultural and sporting events in 94% 90% 90% 90% 90% people of Taranaki to the Stadium the district (NRB Survey) $1,271,000 6. Improved financial performance Total facility expenditure $1,589,000 $1,112,000 $1,163,500 $1,508,000 p.a

* Assumes business growth from installation of artificial pitch

Table 3.2: Yarrow Stadium Level of Service and Performance Measures.

Page 16 of 45 September 2015 Yarrow Stadium Asset Management Plan 4 Demand Current Utilisation Yarrow Stadiums’ primary use is to host rugby matches, however other uses include: Demand Analysis • Conferences. Demand analysis reviews the trends of key drivers that impact upon the Yarrow Stadium assets and assesses the implications for future asset • Exhibitions. management. Any possible changes to the capacity of property • Trade shows. assets are reviewed with reference to the ability of the current asset base to provide facilities and services at the required service levels. • Conventions. • Corporate functions. Demand for services provided is generally measured by how much customers use the assets. Increases or decreases in demand can • Weddings. significantly affect what (and how many ) assets are needed. • Community events.

Furthermore, changes in demand resulting in different loading or utilisation patterns can have significant impacts on levels of service and Demand Forecasting the day to day operation, maintenance or periodic renewal of assets. Forecasting demand is a key asset management process. It helps the Peak demand loads often drive asset capacity requirements, e.g. lifting Trust ensure that future capacity requirements are met without over or the stadium capacity from 17,000 to 25,500 for the RWC 2011. under investing. The forecast demand is used to determine future asset requirements and their associated lifecycle costs. There is adequate capacity to meet demand for minor events but not major events. Additional supplementary catering for food and With this in mind the Joint Committee sought ways to develop and beverages and toilets has to be brought in. However proactive market a truly exceptional stadium, with ideas that are inspirational, planned investment in infrastructure can also drive demand by being a innovative and challenging and ideas that might ‘have a high cost but spur to economic growth, higher productivity asset use and community could deliver real value’. development. To assist with demand forecasting and future needs, a range of Forward planning for such investments may be complex, involve stakeholders were consulted and their feedback used to identify the multiple agencies and disciplines. NPDC Asset Projects Team consider gaps and inform the criteria used to set priorities for future infrastructure questions such as what is the best layout, timing of construction and development. how much will it cost to build, maintain and operate over the long- term. One-to-one stakeholder engagement meetings were held followed by a Joint Committee workshop to review the independent feedback and the headline items identified and agree the priorities for input into the draft Asset Management Plan 10-year budget.

Yarrow Stadium Asset Management Plan September 2015 Page 17 of 45 Demand Forecasting and Stakeholder Engagement (micro-level) • NPDC Teams – Events, Venues, Property, Building, Projects and Parks. 1. Background Research 3. Key Findings (from the needs analysis) The first step was a review of relevant sporting trends and developments. Background research documents included: Multi-use

• NPDC Open Space, Sport, Recreational Strategy (Draft). When asked about their vision for the future of Yarrow Stadium • New Plymouth District Sports Field Demand Study. the overwhelming response from those outside of rugby was for the stadium to become more multi-use. While major branding of • Sport NZ Guidance Document for Sports Field Development the stadium will always be linked to rugby, particularly with the Options. Taranaki’s representative team winning the 2014 ITM premiership cup, a demonstrable commitment by the Trust to provide for the 2. Stakeholder Engagement - Needs Analysis wider community and encourage activity and participation is indicated. Representatives from the various stakeholder groups were asked to give their big picture vision for the stadium and present any While some stakeholders expressed a desire to use the number specific building development ideas or events they would like to one field for major sporting events, it was the number two field put forward for consideration as part of the 10-year plan. where the greatest opportunity for increased utilisation of the stadium and its facilities was identified. Shortcomings with the Feedback was received from representatives of: field and car park lighting was noted as an issue but the absence • Taranaki Rugby Football Union. of toilets or changing facilities impacts the independent use of both fields two and three and limits complimentary use of those • Media (radio). fields for sports training during the week and other interest groups • Sport Taranaki. at weekends. Spectators attending a curtain raiser on field two fields are currently obliged to walk across to the main stadium • St John. which may not always be open to the public. The provision of an • Taranaki Rugby league. ablution block is an easy solution. Increased hospitality space is desired in order to maintain competitive in terms of securing • Venture Taranaki. events and creating revenue opportunities. • NZ Rugby League. Improve the overall stadium experience • NZ Football. At gate one ticketing operations, long queues, lack of good • FIFA. directional signage had been identified as an area for • Taranaki Football. improvement but one stakeholder summed up by describing the stadium as lacking any sense of arrival or welcoming or way- • TSB Bank. finding signage, either for visitors to the Taranaki district or to the • NZ Cricket. stadium. With spectator numbers decreasing and scheduling of more evening games to suit televised audiences, the challenge is • KDJ Catering. to create an environment with better stadium lighting, premier

Page 18 of 45 September 2015 Yarrow Stadium Asset Management Plan hospitality and function rooms and complimentary live superior event facilities, presentation and management entertainment. and through the early adoption and smart use of technology. In addition a lighter, brighter concourse area with less concrete Demand criteria used: and higher finishes is envisaged with a common idea being the creation of concourse mezzanine for office development and • Promotes multi-use. corporate hosting to generate continuous rather than seasonal or • Encourages community activity and participation. event linked revenue opportunities. A venue security system, partitioning walls, improvements to the main function room sound • Enhances visitor spectator experience. proofing and ventilation systems also need to be addressed at • Revenue opportunity. both levels of the TSB stand. • Alignment with Open Space, Sport and Recreation Manage congestion and queuing Strategy.

Noted as a potential for health and safety issues at the start and • Public safety or security/risk. finish of an event, crowd congestion behind the Yarrow stand impacts accessibility, catering services and opportunities for Summary of Process hosting. Another kiosk to service spectators at the southern end With an understanding of growth and future demand trends and would reduce crowd movement towards Yarrow stand and the impacts on levels of service, decisions on how to address relieve the congestion in the area of gate four. future deficiencies or shortfalls in service have been made. This will require capital investment in new assets or upgrading existing Identify what Infrastructure Improvements are Required. or changes to operational/maintenance budgets. The aim is to A list of headline items was produced to meet the needs grow community use of the whole facility with priority given to identified and with the NPDC’s building Projects Team’s options that contribute to maintaining or enhancing the value assistance a rough order of cost for each was obtained. and revenue of the facility. See Appendix 2.

Global Demand Drivers, Impacts and Risks Establish the Criteria for Prioritising 4. The demand for, and on, Yarrow Stadium use can be affected by This was guided by the following vision: changes in the economic, social, cultural, environmental and • The best regional stadium in New Zealand with a regular political environments as well as demographic trends in the programme of national and international sports and district. The needs of the district and its people as a whole help entertainment events. shape the services we provide. This section sets out the demand drivers (both global and activity specific), impacts and risks that • A stadium for both major events and community events underlie the planning for, and delivery of recreation and events and for Taranaki’s premier outdoor field, team sports codes. services. The demand drivers are those assumptions perceived to • A stadium loved by sports fans and the local community. be significant or important for the district as a whole and are particularly significant to Yarrow Stadium facility and Recreation • A stadium that is a quality experience for event promoters, and Events venue /service. participants and spectators, which is achieved through

Yarrow Stadium Asset Management Plan September 2015 Page 19 of 45 For each assumption in this section the following information is Existing Controls included: • Continue to monitor service usage and demand compared to • The demand driver statement. service capacity. • The perceived impact. • Continue to maintain positive working relationships with promoters, ticketing agencies, national sports bodies and owners • The existing controls already in place to address the risk. of major events, to ensure NPDC maintain our position as a • The controls that need to be developed to address the risk successful and professional partner in the organisation of major events Population Growth Projections are for the district to grow following Statistics New Zealand’s 90,000 “high” projection through to 2021 and “medium-high” until 2045. If the forecast is accurate, the district will have grown by 19 per cent from 85,000 74,184 in 2013 (estimated to be 75,100 in 2015) to more than 83,000 in 2025. 80,000

75,000 We have various major projects outlined in the budget over the next 10 years. These will help reduce the strain put on services due to the 70,000 increase in population. NPDC plan to increase the hospitality space and develop a new amenities area. We would also like to develop new 65,000 amenity facilities to services fields two, three and four. Upgrading of the 60,000 gates and ticket boxes will help with the larger attendance at major 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 events and help to reduce large queues. NPDC Projection Stats High Projection Stats Medium Projection Impacts Figure 4.1: New Plymouth District Population Projection • An increase in population is assumed to proportionately increase service demand. Additional demand may put a strain on service delivery to maintain current levels of service. Population Age Group • Event organisers will generally only allow their major events to Along with the growth in population, the forecast is for a greater play at prestigious venues to guaranteed audiences. Generally percentage to be in the 65 and over age group. We expect the 65 this means established venues in large population bases with a and over age group to grow from 18 per cent (14,300) of the total proven track record of attendance. New Zealand event population in 2015 to 24 per cent (19,700) in 2025. With this increase in organisers are increasingly required to provide detailed financial the older population we have to ensure our facilities are safe and easy projections for each proposed event. to use for people of all ages. The redevelopment of various areas such as the hospitality space, gate configuration and walking paths will be done with the older generation in mind.

Page 20 of 45 September 2015 Yarrow Stadium Asset Management Plan Existing Controls 50,000 45,000 • Continue to monitor service usage and demand compared to 40,000 capacity for activities tailored for older people. 35,000 • Continue to ensure that event planning reflects changing 30,000 demographics and include events or programmes within events 25,000 designed to appeal to the increasingly older generation. 20,000 15,000 • Continue to undertake regular accessibility audits and grading of 10,000 NPDC venues. 5,000 • Continue to monitor accessibility to NPDC venues through - implementation of the Council’s Accessibility Strategy. 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 • Continue to work with individuals and organisations that provide 0-14 15-64 65+ activities for community groups to ensure NPDC venues and

Figure 4.2: New Plymouth Age Group Projection events are as accessible as possible.

Impacts Affordability of Essential Goods and Services • The services delivered might not meet the demands of an ageing population. An increase in the older population is assumed to The affordability of essential goods and services will continue to be proportionately increase service demand for activities tailored for affected by the rate of inflation. NPDC uses the Local Government older people. Additional demand may put a strain on service Cost Index (LGCI) forecast produced by BERL to help determine delivery to maintain current levels of service. inflation projections. The 1999 to 2010 the LGCI rose 43.9 per cent compared to the CPI increase of 30.6 per cent. • Increased demand for services due to older people having more available time to use the service. Less attendance and revenue Impacts from the older population. Recreation and events fees, charges and concessions need to consider the financial capability of an • People may have less disposable income to access recreation ageing population. and event services. • A failure to address access can result in social isolation for those • As recreation and events are not essential services, demand is with limited mobility, and can exclude people from participating likely to decrease if people have less disposable income. in district activities. The older population may be reluctant to use venues which don’t meet their expectations for comfort. Existing Controls

• Continue to monitor service usage and demand compared to

current provision and capacity.

• Look to leverage increased external funding for events and venues to increase flexibility around charging and reduce impact on rates and other funding sources.

Yarrow Stadium Asset Management Plan September 2015 Page 21 of 45 4.0% To develop: NPDC plan to work with community groups to minimise the LGCI - Capex cost of venue hire and/o 3.5% r explore opportunities for external subsidisation. 3.0% 2.5% 15% 2.0% 10% 1.5% 5% 1.0% 0% 0.5% 0.0% -5% 15/16 16/17 17/18 18/19 19/20 20/21 21/22 22/23 23/24 24/25 2025+ -10%

Figure 4.3: Inflation Figures -15% 2007 2008 2009 2010 2011 2012 2013 2014 2015 To develop: Review concession options to assist people with less New Plymouth Overall NZ disposable income to access services. Include review of concessions Figure 4.4: Increase/Decrease in the Average Sale Price of Housing for community services card holders.

Affordability of Housing Climate Change, Climate Hazards and Extremes Growth in residential house prices will remain high, compared to other Climate change, climate hazards and extremes will increasingly affect districts. House prices in New Plymouth have consistently been on the the district. rise since early 2012. Impacts Impacts • Wetter winters may be detrimental to attendance at outdoor • Considered as a contributing factor for general affordability and events during the winter months. disposable income as described above. • Reduced attendance and revenue from outdoor events, especially those where walk-up purchase of tickets is available as Existing Controls people may be reluctant to attend due to bad weather. • Continue to monitor service usage and deemand compared to Existing Controls current provision and capacity. • Venue Team takes climate change predictions into account • Look to leverage increased external funding for events and when planning venues and events and aims to minimise the venues to increase flexibility around charginng and reduce impact effects of adverse weather. This includes contingency plans were on rates and other funding sources. appropriate

Page 22 of 45 September 2015 Yarrow Stadium Asset Management Plan To develop: The development of an artificial turf on field number two • The Health and Safety Reform Bill may have implications for using will help provide greater increased capacity of this field and a quality volunteers at events and venues. playing experience in all weather conditions. External funding will be • The Food Act and the Sale and Supply of Alcohol Act may have sought for this project which will determine its timing along with the implications for provision of food and alcohol at venues and trusts ability to contribute funding. This will be reviewed as part of the events both NPDC provided and through contractors Master Plan and Asset Management Plan in 2028. Existing Controls 1,400 • Keep updated on the implications of any legislation changes. 1,200 • Ensure contractors are aware of new legislative requirements.

1,000 • Ensure volunteers are aware of new legislative requirements.

800 Community Expectations on Recreation and Events Service 600 The sports community will continue to expect delivery of a high level, high quality service. Playing, performing or viewing events at an 400 international standard stadium is an experience we want more of the

Monthly Rainfall (mm) 200 community to boast. Currently the community events programme is limited. Reasons for this include the cost of hiring the facility for smaller 0 events when the only changing facilities are within the main stand. At times the availability of the fields can be diminished by preparation 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 required for a major event of simply field capacity being reached in Figure 4.5: Monthly Rainfall at Mangorei Reservoir the case of field two.

Legislative changes Impacts Over the life of the plan there will be political directives from • Community demand and expectations for increased levels of Government on the design and function of local government and service is not in line with the rates restraint and availability of possibly the imposition of legislation changes that will have implications additional resources. for the NPDC. • Levels of service do not meet expectations as this may require increased funding. Community satisfaction with services may Impacts reduce • Changes to legislation could have implications for the structure of NPDC, what services it delivers, the processes and procedures Existing Controls that are used to deliver the services • Monitoring of service demand compared to existing levels of service.

Yarrow Stadium Asset Management Plan September 2015 Page 23 of 45 To develop: NPDC want the overall community utilisation of Yarrow Increased Customer Expectations for Technology at Events/Venues Stadium as a venue to increase and be more regular. As well as Customers will expect a high level of technological capability and outdoor fields, Yarrow Stadium has a number of indoor spaces suitable availability at venues and events. for functions and other community activities. NPDC plan to develop new amenity facilities to service fields two, three and four therefore reducing the needs and costs associated with the opening of the main Impacts stadium for community sport and events. Conference Venue Services • The technology available at venues and events may not meet the expectations of customers. There is opportunity to improve and maximise venue usage to meet conference demand. • Attendance at venues and events may reduce due to a lack of technology available to meet customer needs. This could lead to Impacts reduction in revenue from venues and events. • A lack of suitable conference venues will result in the district missing out on the economic spin-offs generated by this sector. Existing Controls Improved NPDC venues could assist in meeting this demand. • Continue to monitor trends in the use of stadium and venue • Outdoor venues are not suitable as conference venues without technology to ensure the best possible event experience for all the availability of an appropriate indoor venue as a contingency customers. for bad weather. • Continue to manage and implement a social media strategy for • The main venues of the district, the TSB Showplace and TSB all venues. Stadium have insufficient capability and capacity for conferences and more business orientated hireage. To develop: Any new development or upgrade of existing venues should include the latest technology. Existing Controls • Continue to monitor demand for conference venue availability. Tourism • Attend trade shows and undertake an appropriate level of New Plymouth District is expected to experience a slight increase in marketing activity to attract new business. visitor numbers. Events hosted at Yarrow Stadium have an impact on the economy of the region through increased visitors and promotion of the Taranaki brand. In 2013, the rugby test between the All Blacks and France attracted 6,500 visitors and injected $4.53 million into the • Venue improvements at Yarrow Stadium will help to attract and Taranaki economy. We want to optimise the visitor and economic grow business. impact and work collaboratively with stakeholders to promote the Taranaki brand as part of the hosting stadium events and attract more To develop: With plans to redevelop the upper part of Yarrow Stand or events. TSB Stand to create increased hospitality space and new amenities area this will help to meet conference demand

Page 24 of 45 September 2015 Yarrow Stadium Asset Management Plan 600 ‘The Thin Blue Line’ (example of Event Promotion)

500 This pedestrian pathrom the CBD to Yarrow Stadium was another great RWC 2011 initiative and it was fantastic to receive the feedback from 400 the survey to Taranaki patrons at the match and that 26.7 per cent walked! Volunteers were stationed along this route prior to the match 300 to provide a great visitor experience in the lead up to the event and directional assistance as required. 200 Due to building works in the CBD the route was revised to start from the Guest Nights (Thousands) 100 clock tower and the line was only touched up in the areas that required it. The dry weather certainly helped people to make the 0 decision to use this easy access route to and from the stadium and it is

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 a great way to quickly disperse the crowd at the end of match.

Figure 4.6: Number of Guest Nights in New Plymouth

A Vibrant District New Plymouth District will continue to be a positive, connected and vibrant district.

Impacts • Main traffic and event routes lack colour and an expression of the district’s cultural events programme. • Local residents, community groups, businesses and visitors to the district perceive a district that has an absence of positivity and vibrancy.

Existing Controls • Event organisers install flags on New Plymouth’s main roads creating colour and excitement. • Brackets attached to street lighting poles to fly flags and banners to promote upcoming major events, i.e. FIFA. To develop: Continue to provide resources for replacement and renewal of required street flag infrastructure.

Yarrow Stadium Asset Management Plan September 2015 Page 25 of 45 5 Lifecycle Development plan. To respond to growth demand from stakeholders and to improve parts Effective asset management reduces the long-term costs of ownership of the system currently performing below target service standards. and servicing. This section focuses on the management options and strategies for the Yarrow Stadium’s assets throughout their lifecycle. This Operations and maintenance plan. section also covers key lifecycle activities necessary to manage the Activities undertaken to ensure efficient operation and serviceability of facilities. The four activities are shown below. the assets, so assets retain their service potential over their useful life

Renewal plan. Operations: To provide for the progressive replacement of individual assets that Day-to-day work to keep have reached the end of their useful life. Deteriorating asset condition assets operating primarily drives renewal needs. Disposal plan. Disposal of assets that are surplus to requirements

Renewals: LIFECYCLE Disposal: Does not increase MANAGEMENT Sale, demolition Lifecycle Activities but restores or relocation original capacity PLANS Operations and Maintenance This expenditure covers both planned and unplanned maintenance and operations and the work is undertaken by approved contractors. It is the day to day work to keep Yarrow Stadium operating, running smoothly and complying with statutory requirements. This expenditure Augmentation: covers the building and infrastructure only and not expenses relating to Create a new asset or upgrade beyond its the operations activities. NPDC has a relationship with its internal and capacity external tenants via service level agreements and occupancy agreements.

Lifecycle Management Plan Diagram • Planned (Scheduled) Operations and Maintenance.

Overview This is prearranged inspections and maintenance work undertaken to maintain statutory compliance and prevent asset This section describes the assets and the lifecycle management failure. strategies used by NPDC to manage the Yarrow Stadium assets for the next 30 years. Examples include: It presents an analysis of available asset information and the lifecycle o Checks and follow-up maintenance for automatic doors. management plans covering the three key work activities for each type of asset

Page 26 of 45 September 2015 Yarrow Stadium Asset Management Plan o Inspections, follow-up maintenance and certificates for fire • The work which restores the asset to its original size and capacity. safety systems An example of this is the replacement of components that have reached the end of their lives such as replacing the lift o Inspections, follow-up maintenance and certificates for lifts. components or plumbing fittings. o Inspections, follow-up maintenance and certificates for

building warrants of fitness. Augmentation

The augmentation budget covers work that extends or upgrades the • Unplanned (Reactive) Maintenance: facility and caters for new development and growth or achieves a higher level of service. It can include: This is action to correct faults and failures as required. • Creating a new asset that did not previously exist e.g. field two Examples include: Toilet o Repairing storm damage, leaking roofs and windows. • Work that improves or enhances an asset beyond its original size o Rectifying vandalism damage. or capacity, e.g. new big screen

A key element of asset management planning is determining the most Asset Disposal cost-effective mix of planned and unplanned maintenance in order to This is the disposal of assets by way of sale, removal or demolition when minimise the total lifecycle cost. they are surplus or superseded by new or improved assets. Assets may

become surplus to requirements for any of the following reasons: Capital Expenditure • Under utilisation. Capital expenditure includes both renewals and augmentation. It has been planned, budgeted for and approved by the Joint Committee • Obsolescence. and it covers the: • Provision exceeds levels of service (as a result of policy changes • Way in which projects are prioritised. or other factors). • Development of business cases for projects, asset creation or • Asset replaced through renewal or augmentation often before its refurbishment and asset rationalisation. predicted economic life. • Uneconomic to upgrade or operate. Renewals • Service provided by other means, e.g. private sector This budget is used for refurbishing, retrofitting and redecorating and involvement. covers: • Potential risk of ownership (financial, environmental, legal, social, vandalism). • The rehabilitation of existing buildings to near their original size, • Considered to be non-core business. condition and capacity such as redecorating and replacing

kitchen or ablution components.

Yarrow Stadium Asset Management Plan September 2015 Page 27 of 45 General Strategies, Operations and Maintenance • The remaining service life of the facility, including demand, size, layout etc. NPDC engages pre-approved contractors to carry out both planned and unplanned maintenance for the buildings and land it manages. • The asset service life – proof of the remaining serviceability of the facility.

Scheduled • Maintenance history of the facility. Contractors are engaged to carry out a series of regular activities. In • Current condition rating to identify and grade defects. some instances, follow-up action and maintenance will also be • Health and safety issues. undertaken to keep the current level of service and comply with statutory requirements. This information assists in considering options for the most appropriate

treatment, the options being: Single supplier contracts are progressively being put in place for the NPDC’s operations and maintenance. To date contracts are in place • Retain the facility as it is. for the following: • Place on the renewal programme, the augmentation • Access control systems maintenance. programme or both. • Building automation system maintenance. • Dispose remove, sell if able or demolish. • Building warrants of fitness. Capital Expenditure History and Forecasts • Electrical maintenance. Renewal Profiles • Heating ventilation and air conditioning (HVAC). In 2005, the base property and condition data captured at a detailed • Lifts maintenance. level by City Care Ltd established the initial Yarrow property asset • Plumbing. information. Since then independent valuers from Telfer Young Valuations (for buildings) have provided regular valuation assessments • Security. over the last four cycles and they are now very familiar with the Yarrow Stadium assets Reactive The valuers are provided with capital expenditure spend data per Incoming work requests are recorded in the NPDC’s work management period for each revaluation. Other information such as details of system prior to the job being assessed then assigned to a pre-approved regular maintenance inspections is utilised. contractor. NPDC is obliged to respond and resolve the problem to the customer’s satisfaction within agreed time periods according to Componentisation has been undertaken to take into account the urgency. varying economic lives of each component i.e. structure, roof,

electrical services, security, floor coverings. General Strategies, Renewal and Augmentation

Renewal and augmentation decisions are based upon criteria such as:

Page 28 of 45 September 2015 Yarrow Stadium Asset Management Plan Renewal profiles can be calculated using a model based on: • Providing revenue opportunity. • Asset condition. • Alignment with Open Space, Sport and Recreation Strategy.

• Expected life of the asset. Future Work Programming • Calculation of the remaining life (increased to reflect those assets End of Life Renewals replaced or partially replaced). A proposed programme of specific end of life renewals has been • The replacement cost. assessed comprising a estimated sum total of $3,088,000 over the 10 year period Renewal profiles have in the past provided a theoretical guide to when an asset may need replacement. However NPDC prefer condition and Major Projects 2015-2025 other priority factors (see below) provide better justification Major projects affecting the Yarrow Stadium assets have been

committed to by the Joint Committee and they are listed in the Asset Inspections by NPDC’s Property/Projects/Venues Team’s combined Management Plan as major projects: with feedback from users and cost estimates from contractors, engineers and architects, has assisted with forecast 2015-2025 capital 1. Redevelop the upper part of Yarrow stand or TSB stand to create expenditure and maintenance budgets. increased hospitality space and new amenities area.

Priority 2. Redevelop the outer areas, where needed, to improve customer experience, including gate 1 configuration and main entrance All identified work, whether renewal or augmentation, needs a basis for arrival. determining which should be completed first. The method for determining the priority is deciding what offers the best value to the 3. Upgrade toilets, bars, kitchen, ceiling, lights and memorabilia community, within the fiscal envelope space to the Legends Lounge.

4. Upgrade venue reception/entry, office and heating. The criteria used to evaluate and justify the best value includes: 5. Upgrade lights 200 lux for fields three and four. • Urgency – the likelihood of failure of the asset due to its condition. 6. Current floodlight replacement/upgrade. • Compliance requirements to enable the asset to continue to legally operate. 7. Review current layout of public food and beverage areas if new Yarrow Stand amenities are not built due to hospitality expanding • Public good and community benefit – comfort, convenience, in TSB Stand security, health and safety considerations and so on. 8. Develop Maratahu streetscape/premier entrance. • Optimised decision-making - incorporating cost effectiveness, best rate of return and so on. • Promoting multi-use of the facility. • Enhancing visitor spectator experience.

Yarrow Stadium Asset Management Plan September 2015 Page 29 of 45 $3,000 Minor Maintenance (NPDC) Over the 10-year plan the minor maintenance work covered by NPDC $2,500 will and focus on the following items. See Appendix 4. Thousands $2,000 $300

$1,500 Major Maintenance $250

$1,000 Thousands $200

$500 $150 Increased hospitality space space hospitality Increased $0 Floodlight upgrade 15/16 16/17 17/18 18/19 19/20 20/21 21/22 22/23 23/24 24/25 $100 Insurance Minor Maintenance Figure 5.1: Major CAPEX- Renewal and Augmentation Projects $50 (excludes inflation) $0 15/16 16/17 17/18 18/19 19/20 20/21 21/22 22/23 23/24 24/25 All cost estimates are very rough order estimates only. Further specific and detailed feasibility needs to occur to determine and validate Figure 5.2: Minor and Major Maintenance –NPDC Responsibility design, capital costs, project utilisation, net operating impacts, prioritised options and merits for staged developments where (excludes inflation) applicable.

It is very likely when considering net operating impact relative to additional staffing, cleaning, and energy requirements, depreciation and cost of capital, that the overall net financial impact will be negative and at best neutral for various options, due to increased revenue.

Major Maintenance and Minor Maintenance Expenditure Forecast

Major Maintenance (TST)

Over the 10 year plan the major maintenance work will comprise car park reseals, interior redecoration, rust removal work from Steelwork, floor covering replacements in conjunction with regular planned maintenance checks. See Appendix 3.

Page 30 of 45 September 2015 Yarrow Stadium Asset Management Plan 6 Financial Forecast Budgeting Budgeting History

The following is an outline of the funding and expenditure forecast for In 2001/2002 The TRC provided $9.6 million for the development of the 10-year plan Yarrow Stadium, at what was Rugby Park. In 2003, ongoing responsibility for the management and funding of Yarrow Stadium was vested with Major Assumptions NPDC.

The key financial assumptions for the TRC are described below: In 2013, the TRC assumed control of the trust that owns the stadium.

• Service levels are generally assumed to remain the same, unless Regional ownership and a region-wide funding base secure the increased result of an improvement project. stadium’s future, allowing the facility to be appropriately maintained • Inflation is based on TRC’s knowledge of its business base and on and developed. Business and Economic Research Limited (BERL) predictors for the next 10 years. The stadium’s initial regional funding of $9.6 million was covered by a combination of uniform charges across the region and targeted rates • The cost of new and replacement assets will rise in line with in New Plymouth and North Taranaki. This arrangement ran from inflation. 2001/02 to 2011/12. Essentially, TRC is now continuing this rating into the • The rating base will continue to expand from new lot creations. future to fund maintenance and development of the stadium.

• Financial dollars are in Money of the Day (MoD) as opposed to The net effect is no change in the ratepayer payments to fund the the Net Present Value (NPV), meaning that the long term stadium. For Stratford and South Taranaki residents, this amounts to $11 projected rate of inflation as estimated by TRC’s business base a year on average. For New Plymouth and North Taranaki residents, it is and on BERL indicators, is consistent with the AMP forecasted $20 a year on average, and about $100 for commercial and industrial financials. ratepayers. • All augmentation is funded via TRC rates funding. General funding principles adopted in the Management Agreement • All renewals are funded via TRC rates funding. between NPDC and the Taranaki Stadium Trust is: • NPDC will continue to operate and fund the operations and • NPDC will fund general maintenance defined as “general non- minor maintenance of Yarrow Stadium. major maintenance required to maintain the facility in good • TRC will continue to fund, via the Trust, the long-term working order and includes those aspects set out in the general maintenance and development of Yarrow Stadium. maintenance column in Schedule 2 to the Management Agreement”.-Venues Opex budget

• NPDC will fund operation costs on an annual basis being those costs that are “identified in the planned maintenance costs, general maintenance, and day-to-day management and operations costs”. Venues Opex budget

Yarrow Stadium Asset Management Plan September 2015 Page 31 of 45 • NPDC is entitled to receive all revenue generated from the Capital Expenditure stadium including revenue from hireage and operation and other Capital expenditure, or CAPEX, consists of renewals and augmentation. commercial arrangements, to be applied to the NPDC’s general The renewal of an asset means to replace or renew the asset so it maintenance and operations cost of the stadium. Venues Opex performs the same function to the same level of service. budget.

• The general operating budget shall be funded by NPDC (unless Augmentation is the creation of a new asset or to extend an existing the annual budget provides for any part to be funded by the asset beyond its current capacity. Trust, and be provided for in the Annual Budget.) Venues Opex budget. Budget Overview • The Trust will meet the cost of all major maintenance meaning The following section summarises the funding and expenditure costs for “the significant maintenance items carried out on a one off or Yarrow Stadium. See Appendix 5 for a full break down of financial infrequent basis, and includes those aspects of maintenance set spend. out in the major maintenance column in Schedule 2 to the Management Agreement”.TRC Opex budget. Budget highlights • The Trust will meet the cost of all capital expenditure meaning The following section summarises the funding and expenditure costs for “expenditure for the acquisition, replacement, renewal, Yarrow Stadium. modernisation or expansion of an asset”. TRC Capex budget. • Eight major capex projects, including the development of an increased hospitality space. Total estimated cost of these Financial Projections projects is around $4.7 million. Operational Expenditure • Minor capex projects and various minor renewals. Total estimated cost around $3 million. Operations costs relate to all of the costs associated with the operational function of the Yarrow Stadium facility. NPDC pays for • Major maintenance will average $200,000 per annum over the 10 operational and minor maintenance costs such as staff costs, cleaning, year period. power, and minor maintenance items. • Minor Maintenance will average $37,000 per annum over the 10

year period. The Trust funds major maintenance costs systems associated with electrical, plumbing, lifts, fire systems, HVAC (Heating, ventilation and • For the first five years, half the Trust’s funding from the TRC will be air-conditioning) security, scoreboard, lighting towers, interior and used in debt servicing the new roof project (approx $438,000 per exterior cyclic re-decoration and road sealing annum).

• TRC Long Term Plan proposes that the Yarrow Stadium annual The Trust also funds material damage insurance. contribution of $876,000 is not increased for inflation over the

2015-2025 time periods.

Page 32 of 45 September 2015 Yarrow Stadium Asset Management Plan Future Renewals Past 2025*

The following items and estimates have been identified as future • External risk events renewal work after 2025: Events largely beyond the control of the organisation. Examples • HVAC systems 2027 - $1,695,000 of external events and risks that were analysed to determine the • Video Screen Renewal 2029 -$600,000 probability of occurring and possible consequence for the property assets were extreme weather events, earthquake, • East and west stand seat replacement 2032 - $720,000 vandalism, electricity supply failure, changes in legislation, etc. • Main light towers (four) 2039 - $2,300,000 • Physical risk events • Northern embankments and berms 2040 - $735,000 Events mainly associated with the failure of the assets due to • Plumbing systems 2042 - $430,000 loading characteristics or failure of building systems and materials. Examples of physical risks that were analysed further • Speakers 2043 - $50,000 include asset material failure, building systems failure, etc. • IT upgrade 2043 - $160,000 • Operational risk events

Events largely caused by breakdown of operational processes *A comprehensive review of renewals will be undertaken prior to the such as inadequate inspections, accidents, or loss of key Asset Management Plan review in 2028. information. Examples include inadequate training, inadequate service level agreements, poor construction and maintenance, 7 Risk Management etc. • Asset management risk events Events associated with incomplete planning information and Risk management identifies potential risks to Yarrow Stadium’s property processes, such as data capture and demand analysis. assets, analyses the consequences and likelihood of those risks Examples that were analysed include change of strategies, occurring and discusses the treatments used to manage those risks. change of design criteria, capacity and demand planning deficiencies, cultural and political restraints, emergency response It also identifies whose responsibility it is to manage each of the planning, consultation deficiencies, inadequate risk planning, identified risks. This assessment provides guidance for planning and etc. policy, and ensures that risk will be managed in a manner that enables the key business objectives and community outcomes to be consistently achieved. Appendix 6 provides examples of sources of high or extreme risk Sources of Risk associated with Yarrow Stadium, the impact and likelihood. The sources of risks the NPDC is exposed to are many and varied. To provide a framework for risk identification and analysis, four source areas of risk have been identified as follows:

Yarrow Stadium Asset Management Plan September 2015 Page 33 of 45 Appendix 1 - Yarrow Stadium Major Events 2004 – 2015

2004 2005 Central Districts vs Sri Lanka Tuesday 21 December Warriors vs Parramatta Eels Sunday 13 February NPC Taranaki Home Games July – September Taranaki vs British Irish Lions Wednesday 8 June NPC Taranaki Home Games July –September 2006 2007 Super 14 Hurricanes vs Western Force Saturday 18 February Crusty Demons Wednesday 21 February Pacific Five Nations Double Header: Air NZ Cup Taranaki home games July – September Japan vs Samoa Saturday 17 June NZ Jnr All Blacks vs Tonga Saturday 17 June Air NZ Cup Taranaki home games July – September 2008 2009 Air NZ Cup Taranaki home games August – September Crusty Demons Wednesday 25 February All Blacks vs Manu Samoa Wednesday 3 September Super 14 Hurricanes vs Cheetahs Saturday 7 March All Golds vs New Zealand Maori Sunday 12 October Air NZ Cup Taranaki home games August – October 2010 All Blacks vs Ireland Saturday 12 June 2011 ITM Cup Taranaki home games July – October ITM Cup Taranaki home games July – September 2011 Rubgy World Cup Matches: Ireland vs USA Sunday 11 September Russia vs USA Thursday 15 September Wales vs Namibia Monday 26 September 2012 2013 Super 15 Hurricanes vs Sharks Friday 6 April All Blacks vs France Saturday 22 June ITM Cup Taranaki home games August – October ITM Cup Taranaki home games August – October Monster Trucks Saturday 8 December 2014 2015 Super 15 Chiefs vs Blues Friday 9 May Super 15 Chiefs V Brumbies 20 February Super 15 Chiefs vs Warratahs Saturday 3 May FIFA U 20 World Cup 1, 4, 7 & 11 June ITM Cup Taranaki home games August – October Super 15 Chiefs V Hurricanes 13 June

Page 34 of 45 September 2015 Yarrow Stadium Asset Management Plan Appendix 2

Demand Driver

Priority Asset Description Cost Estimate Strategy Strategy Experience Issue or Risk Space, Sport Rec. Promotes Multi-Use Enhances Spectator Revenue Generation Revenue Alignment with Open Open with Alignment Public safety/Security safety/Security Public Community Participation Redevelop the upper part of Yarrow Stand or TSB Stand Yarrow or TSB 1 to create increased hospitality space and new Stand amenities area $1,870,000 Y Y Y Y Y Redeveloping outer areas where needed to improve 1 Outer Areas customer experience, including gate 1 configuration and main entrance arrival signage $300,000 Y Y Y Y TSB Stand Legends Lounge – upgrade toilets, bars, 1 TSB Stand kitchen, ceiling, lights & memorabilia space $400,000 Y Y Y Y Y 1Venue ReceptionVenue reception/entry, office and heating upgrade $350,000 Y Y Y 2Fields 3 & 4 Upgrade Lights 200 lux for fields 3 and 4 $450,000 Y Y Y Y Y 2 Field No.1 Current floodlight replacement/upgrade* $545,000 Y Y Y Y Y Review of current layout of public food and beverage Food and 2 areas if new Yarrow Stand amenities are not built due Beverage Areas to hospitality expanding in TSB Stand $300,000 Y Y Y Maratahu Streetscape/premier entrance development 3 Streetscape $468,000 Y Y Y

Yarrow Stadium Asset Management Plan September 2015 Page 35 of 45 Appendix 3

Major Maintenance Cost (TST) Planned Unplanned Electrical system replacement & repairs Annual cost Plumbing & Drainage system replacement & repairs Annual cost Spouting & downpipe replacement & repair Planned 2016-2018 Lift maintenance & repairs New . Maintenance costs start 2016 HVAC - Air system maintenance (Heating, ventilation, airconditioning) Planned checks Fire systems & fire-fighting equipment Planned checks Annual cost Security Cameras replacement & repair Annual cost Security & Fire alarms replacement & repair Annual cost Structural repairs Annual Rust removal costs -Steel work,stands Floor covering replacement Progressive room by room where required repalcment of carpets /vinly and floor re-seals Exterior glass replacement & repair Annual cost Access control (electronic or key) Annual cost Accessibilty requirements Annual cost Permanent signage Annual cost Sound system PA New . Maintenance costs start 2016 Drapes and window treatments Offices Scoreboard Maintenance New . Maintenance costs start 2016 Lighting towers maintenance Annual rust removal Annual cost Exterior cleaning / wash down (Chemwash) Annual cost Interior (cyclic) redecoration Progressive room by room interior re-decoration over next 10 years Work to ensure water tightness or remedy water tightness issues) Annual cost External painting (excluding graffiti removal) Full exterior recently reapinted .Next Paint due 2022 Annual cost Floor covering replacement Progressive room by room where required repalcment of carpets /vinly and floor re-seals Building Compliance Costs Annual cost Carpark re-sealing Area by area -stop pavment failure ,fatigue .H&S issue Roof replacement and painting Nil. New Roof Fixed seating purchase, replacement & repairs Part of future renewal of southern seats Indoor & outdoor lighting, circuitry replacement & repair Replacement of No.3 &4 field lights in 2019/20 Perimeter fencing and gates

Page 36 of 45 September 2015 Yarrow Stadium Asset Management Plan Major Maintenance Cost (TST) Planned Unplanned B Building Fit out replacement and ancillary Services Kitchen fit out replacement. Stoves, ovens, refrigerator & dishwasher Annual cost Generator maintenance Annual cost

C Turf and grounds maintenance Major Turf and irrigation renewals Future Field 2 Turf renovation

Yarrow Stadium Asset Management Plan September 2015 Page 37 of 45 Appendix 4

Minor Maintenance Cost NPDC )

Non-major internal repairs and alterations for staff and tenants Blocked drains & toilet blockages Day to day electricity & gas maintenance. Fuses & day to day electrical repairs Security & fire alarms monitoring Floor covering repairs Replacement keys and fobs Lighting operations and minor repairs. Light bulb replacement Scoreboard operations Commercial and event signange

B Building Fit out replacement and ancillary Services Minor repairs to kitchen fitout and whiteware Generator operating costs and minor maintenance

C Turf and grounds maintenance Mowing, verti-draining, rolling, weed control, fertiliser, irrigation, minor maintenance, renovations and marking Bulding surrounds and gardens maintenance

Page 38 of 45 September 2015 Yarrow Stadium Asset Management Plan Appendix 5

Yarrows Stadium 10 Year Estimated Budget Year 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 TOTAL

OPEX (000's) Minor Maintenance $33 $33 $34 $35 $36 $37 $38 $39 $40 $42 $367 TOTAL Minor Maintenance (NPDC) $33 $33 $34 $35 $36 $37 $38 $39 $40 $42 $367

Major Maintenance (Trust) Electrical system (planned maintenance) $10 $10 $10 $10 $10 $10 $10 $10 $10 $10 $100 Plumbing maintenance $10 $10 $10 $10 $10 $10 $10 $10 $10 $10 $100 Spouting & downpipe replacement & repair $24 $24 $48 Lift maintenance $9$9$9$9$9$9$9$9$9 $77 HVAC $10 $10 $10 $10 $10 $10 $10 $10 $10 $10 $100 Fire system & Firefighting equipment $5$5$5$5$5$5$5$5$5$5 $50 Security & Fire alarms replacement & repair $5 $5 $5 $5 $5 $5 $5 $5 $5 $5 $50 Building misc $15 $5 $5 $5 $5 $10 $5 $5 $5 $5 $65 Scoreboard Maintenance & replacement $2$2$2$2$2$2$2$2$2 $18 Lighting towers maintenance $70 $15 $15 $15 $15 $15 $15 $15 $15 $15 $205 Exterior cleaning / wash down $38 $38 $38 $38 $38 $38 $38 $38 $38 $38 $380 Interior (cyclic) redecoration $20 $25 $20 $20 $20 $25 $15 $25 $15 $25 $210 Work to ensure water tightness $20 $20 $10 $10 $10 $20 $10 $20 $20 $20 $160 External painting $10 $10 $10 $10 $10 $10 $10 $10 $10 $10 $100 Floor covering replacement $20 $20 $20 $20 $20 $20 $10 $20 $10 $10 $170 Building Compliance Costs $10 $10 $10 $10 $10 $10 $10 $10 $10 $10 $100 Car park reseals $15 $10 $20 $10 $55 TOTAL Major Maintenance (Trust) $258 $228 $223 $189 $179 $199 $164 $194 $174 $184 $1,988

Insurance Insurance $55 $57 $66 $77 $82 $87 $90 $93 $97 $101 $805 TOTAL Insurance $55 $57 $66 $77 $82 $87 $90 $93 $97 $101 $805

TOTAL Maintenance / Insurance $346 $318 $323 $301 $297 $323 $292 $326 $311 $327 $3,160

Yarrow Stadium Asset Management Plan September 2015 Page 39 of 45 Yarrows Stadium 10 Year Estimated Budget Year 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 TOTAL CAPEX (000's) Major Projects Redevelop the upper part of Yarrow Stand or TSB Stand to create increased hospitality space and new amenities area $170 $1,700 $1,870 Redeveloping outer areas where needed to improve customer experience, including gate 1 configuration and main entrance arrival signage $300 $300 TSB Stand Legends Lounge – upgrade toilets, bars, kitchen, ceiling, lights & memorabilia space $400 $400 Venue reception/entry, office and heating upgrade $350 $350 Upgrade Lights 200 lux for fields 3 and 4 $450 $450 Current floodlight replacement/upgrade* $45 $500 $545 Review of current layout of public food and beverage areas if new Yarrow Stand amenities are not built due to hospitality expanding in TSB Stand $300 $300 Maratahu Streetscape/premier entrance development $43 $425 $468 TOTAL Major Projects $215 $2,400 $0 $1,300 $300 $0 $0 $43 $425 $0 $4,683 *Year 1 - Project initiated to undertake design of LED lighting system and options for a partnership approach Minor Projects TSB Stand Cardex System $50 $50 Road Sealing $40 $40 Generator Purchase $300 $300 Ticket Box upgrading - 2, 3 & 4. New ticket box location, upgrade gate entry, lights and roof cover $160 $160 Spotswood Car park sealing $150 Step edging of all corporate stairs and stands $45 $45 Cover in the railing at each end of Yarrow Stand $20 $20 Purchase of four deep fryer cookers for kiosks - additional to existing numbers $20 $20 Walking pathway between gate 3 and 4 outside of event perimeter fence $100 $100 TSB Stand concourse development – polish/new floors, partitioning and speakers, heating and storage $13 $250 $263 Total Minor Projects $390 $0 $310 $65 $20 $100 $13 $250 $0 $0 $1,148

Page 40 of 45 September 2015 Yarrow Stadium Asset Management Plan Yarrows Stadium 10 Year Estimated Budget Year 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 TOTAL

Renewals Legends Pres Room AC $10 $10 Permanent signage $15 $15 East Stand PA System $60 $60 Kitchen appliances $10 $10 $20 Chillers/Extracts replacement $40 $43 $10 $93 Legends Lounge Sound System $50 $50 Replacement of southern terrace seating $500 $500 Main field turf renewal & Drainage $900 $900 Total Renewals $25 $70 $10 $0 $40 $0 $50 $0 $43 $1,410 $1,648

TOTAL CAPEX spend $630 $2,470 $320 $1,365 $360 $100 $63 $293 $468 $1,410 $7,478

OPEX $313 $285 $289 $266 $261 $286 $254 $287 $271 $285 $2,793 CAPEX $630 $2,470 $320 $1,365 $360 $100 $63 $293 $468 $1,410 $7,478

Major Renewals beyond 2025* Year Estimated Value HVAC Systems 2027 $1,695 Video Screen Renewal 2029 $486 East & West Stand Seat Replacement 2032 $720 Light Towers X 4 2039 $2,300 Northern Embankments & Berms 2040 $735 Plumbing Systems 2042 $430 Speakers 2043 $50 IT Upgrade 2043 $160 $6,576 *Comprehensive review of renewals will be undertaken prior to Asset Management Plan review in 2018

Yarrow Stadium Asset Management Plan September 2015 Page 41 of 45 Yarrows Stadium 10 Year Estimated Inflated Budget Year 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 TOTAL

OPEX (000's) Minor Maintenance $33 $34 $36 $38 $40 $42 $45 $47 $50 $54 $418 TOTAL Minor Maintenance (NPDC) $33 $34 $36 $38 $40 $42 $45 $47 $50 $54 $418

Major Maintenance (Trust) Electrical system (planned maintenance) $10 $10 $10 $11 $11 $11 $12 $12 $12 $13 $113 Plumbing maintenance $10 $10 $10 $11 $11 $11 $12 $12 $12 $13 $113 Spouting & downpipe replacement & repair $0 $25 $25 $0 $0 $0 $0 $0 $0 $0 $50 Lift maintenance $0 $9 $9 $9 $9 $10 $10 $10 $11 $11 $88 HVAC $10 $10 $10 $11 $11 $11 $12 $12 $12 $13 $113 Fire system & Firefighting equipment $5$5$5$5$6$6$6$6$6$6 $57 Security & Fire alarms replacement & repair $5 $5 $5 $5 $6 $6 $6 $6 $6 $6 $57 Building misc $15 $5 $5 $5 $6 $11 $6 $6 $6 $6 $72 Scoreboard Maintenance & replacement $0$2$2$2$2$2$2$2$2$3 $21 Lighting towers maintenance $70 $15 $16 $16 $17 $17 $18 $18 $19 $19 $225 Exterior cleaning / wash down $38 $39 $40 $41 $42 $43 $45 $46 $47 $49 $430 Interior (cyclic) redecoration $20 $26 $21 $22 $22 $28 $18 $30 $19 $32 $238 Work to ensure water tightness $20 $20 $10 $11 $11 $23 $12 $24 $25 $26 $182 External painting $10 $10 $10 $11 $11 $11 $12 $12 $12 $13 $113 Floor covering replacement $20 $20 $21 $22 $22 $23 $12 $24 $12 $13 $189 Building Compliance Costs $10 $10 $10 $11 $11 $11 $12 $12 $12 $13 $113 Car park reseals $15 $10 $21 $11 $0 $0 $0 $0 $0 $0 $57 TOTAL Major Maintenance (Trust) $258 $233 $233 $203 $198 $226 $192 $234 $217 $237 $2,230

Insurance Insurance $55 $58 $69 $83 $91 $99 $106 $112 $121 $130 $925 TOTAL Insurance $55 $58 $69 $83 $91 $99 $106 $112 $121 $130 $925

TOTAL Maintenance / Insurance $346 $325 $338 $324 $328 $367 $342 $394 $388 $421 $3,573

Page 42 of 45 September 2015 Yarrow Stadium Asset Management Plan Yarrows Stadium 10 Year Estimated Inflated Budget Year 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 TOTAL CAPEX (000's) Major Projects Redevelop the upper part of Yarrow Stand or TSB Stand to create increased hospitality space and new amenities area $170 $1,740 $1,910 Redeveloping outer areas where needed to improve customer experience, including gate 1 configuration and main entrance arrival $307 $307 TSB Stand Legends Lounge – upgrade toilets, bars, kitchen, ceiling, lights & memorabilia space $409 $409 Venue reception/entry, office and heating upgrade $377 $377 Upgrade Lights 200 lux for fields 3 and 4 $485 $485 Current floodlight replacement/upgrade* $45 $538 $583 Review of current layout of public food and beverage areas if new Yarrow Stand amenities are not built due to hospitality expanding in TSB Stand $332 $332 Maratahu Streetscape/premier entrance development $51 $531 $582 TOTAL Major Projects $215 $2,457 $0 $1,400 $332 $0 $0 $51 $531 $0 $4,986 *Year 1 - Project initiated to undertake design of LED lighting system and options for a partnership approach Minor Projects TSB Stand Cardex System $50 $50 Road Sealing $40 $40 Generator Purchase $300 $300 Ticket Box upgrading - 2, 3 & 4. New ticket box location, upgrade gate entry, lights and roof cover $168 $168 Spotswood Car park sealing $157 Step edging of all corporate stairs and stands $48 $48 Cover in the railing at each end of Yarrow Stand $22 $22 Purchase of four deep fryer cookers for kiosks - additional to existing numbers $22 $22 Walking pathway between gate 3 and 4 outside of event perimeter fence $114 $114 TSB Stand concourse development – polish/new floors, partitioning and speakers, heating and storage $15 $302 $317 Total Minor Projects $390 $0 $325 $70 $22 $114 $15 $302 $0 $0 $1,238

Yarrow Stadium Asset Management Plan September 2015 Page 43 of 45 Yarrows Stadium 10 Year Estimated Inflated Budget Year 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 TOTAL

Renewals Legends Pres Room AC $10 $10 Permanent signage $15 $15 East Stand PA System $61 $61 Kitchen appliances $10 $10 $21 Chillers/Extracts replacement $44 $54 $13 $111 Legends Lounge Sound System $59 $59 Replacement of southern terrace seating $645 $645 Main field turf renewal & Drainage $1,162 $1,162 Total Renewals $25 $72 $10 $0 $44 $0 $59 $0 $54 $1,820 $2,084

TOTAL CAPEX spend $630 $2,529 $336 $1,470 $398 $114 $73 $354 $585 $1,820 $8,308

OPEX $313 $291 $303 $286 $288 $325 $297 $346 $338 $367 $3,155 CAPEX $630 $2,529 $336 $1,470 $398 $114 $73 $354 $585 $1,820 $8,308

Major Renewals beyond 2025* Year Estimated Inflated Value HVAC Systems 2027 $2,399 Video Screen Renewal 2029 $733 East & West Stand Seat Replacement 2032 $1,196 Light Towers X 4 2039 $4,784 Northern Embankments & Berms 2040 $1,579 Plumbing Systems 2042 $985 Speakers 2043 $118 IT Upgrade 2043 $378 $12,173 *Comprehensive review of renewals will be undertaken prior to Asset Management Plan review in 2018

Page 44 of 45 September 2015 Yarrow Stadium Asset Management Plan Secondary Category (X = Yes) Controls Black - In place (believed to be Risk and Pure Risk effective) Impact Level Risk Description Primary Category Likelihood Amber - Review required (partially Treatment (Consequence) (Raw effective) Owner Risk) Red - To be developed (not in place or not effective) Financial Financial & Health Public Image Service Delivery Health and Safety of - Contractors to be H&S approved; staff, contractors, Minor health or - Contractors competency assessed members of the public safety impact on in tender process; Impacts on in relation to Manager small number of Almost - Site inspections and auditing; public and High construction Projects people. Injury certain - Permit to work system at some sites; health /project/maintenance dealt with. No - Site inductions; / operational /event hospitalisation - Pre-tender H&S plans developed; activities - Project Manager training;

- Develop/adapt methodologies for Loss of between Cost estimates Manager calculating project contingency Financial Impact $250,000 and $1 Likely High inaccurate Projects based on profile of the scheme, risks million inherent and stage of design

Local media coverage, - Develop/adapt methodologies for Cost estimates Image reputation Manager community, calculating project contingency Likely High inaccurate Public support Projects interest in based on profile of the scheme, risks Council's inherent and stage of design performance

Disruption following a Manager Insurance, emergency evacuation major event, such as Property & plan, code compliant building, Civil Extreme fire, earthquake, flood Financial Impact X Team Leader Catastrophic Likely Defence (CDEM) Alert, business Risk causing substantial Asset continuity and accommodation damage Management plans.

Rehabilitate or replace plant when Manager it is due to maintain service levels. Property , Asset failure causing Medium Ensure knowledge systems in place Financial Impact x x Property and Moderate/high Possible prolonged shutdown Risk to monitor & manage data and Maintenance information regarding asset staff performance and condition

Yarrow Stadium Asset Management Plan September 2015 Page 45 of 45

YARROW STADIUM BUSINESS PLAN

Contents

1. EXECUTIVE SUMMARY ...... 3

2. BACKGROUND ...... 4

3. COMPETITIVE ADVANTAGE ...... 6

4. STAKEHOLDERS ...... 7

5. WHAT BUSINESS ARE WE IN?...... 8

6. BUSINESS ANALYSIS ...... 9

7. FINANCIAL SUMMARY ...... 10

8. OPPORTUNITIES FOR GROWTH ...... 11

9. POWER SUPPLY ...... 13

10. EVENTS ATTRACTION FUND ...... 15

11. FINANCIAL SUMMARY GOING FORWARD ...... 17

Appendix A: Potential Yarrow Stadium Events Programme ...... 18

Appendix B: Opportunities for Growth (how to achieve identified goals) ...... 19

APPENDIX C: Performance Measures – Next Ten Years ...... 24

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1. EXECUTIVE SUMMARY Although the stadium has a relatively high national and international profile more work is required to consolidate and grow the business potential of the facility. This will include stadium building enhancements, increased success in event attraction, a shared vision between all interested parties, closer working relationships with all stakeholders and an effective business and marketing plan.

Yarrow Stadium is part of the New Plymouth Event Venues brand which includes the TSB Stadium, TSB Bowl of Brooklands and from July 2016 the TSB Showplace. A website promoting the venues along with separate facebook pages has been established in the past two years and is making excellent progress in terms of growing its combined customer database. From this development, management have been able to conduct regular marketing campaigns to build the relationship between customers and the venues.

Proposed improvements to Yarrow Stadium, combined with an increased events programme and enhanced customer relationships, provide a sound basis upon which a positive view of the future can be realised. In the current year alone (2015) the stadium has played host to six FIFA U20 World Cup games, two Super Rugby games, a full ITM Cup season, a pre-season football match featuring the Wellington Phoenix and New Zealand A and to finish the year off, five Twenty20 cricket matches within the Georgie Pie Super Smash competition, the latter being the first year of a three-year agreement.

Looking to the future an All Blacks Test against Argentina has been secured for September 2017 and other events are currently awaiting bid responses and/or negotiations are progressing well.

Growing the business at Yarrow Stadium is both an exciting and challenging prospect. This plan aims to outline the background to the current position, identify the opportunities and challenges and propose a way forward covering the short to medium term.

Indicators of success include: • Hosting international and national sporting events from different sporting codes on a regular basis. • Growth in the number of bookings/events and community utilisation. • Increased non-event day business, especially from the corporate sector. • The securing of long-term partnerships and maintaining effective stakeholder relationships. • Successful overall business operations resulting in the reduction of financial subsidy by the New Plymouth and Taranaki ratepayers.

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2. BACKGROUND The venue was first developed as a rugby ground in 1931, with the first stadium completed in 1947. Yarrow Stadium (formerly Rugby Park) was redeveloped in 2001/02. The redevelopment costs included a provision of $9.6 million from New Plymouth District Council (NPDC) to the Taranaki Events Centre Trust, which was funded via a ten-year rate (combined Uniform Annual General Charge (UAGC) and land value targeted rate) of $876,000 per annum. In 2003, ongoing responsibility for the management of Yarrow Stadium was vested with New Plymouth District Council. The collection of this rate finished in 2011/12.

In June 2013 NPDC transferred control of the Trust to the Taranaki Regional Council (TRC) and the Trust was renamed the Taranaki Stadium Trust (TST) operating as a Council-controlled Organisation of TRC. From 2012/13 onwards, an equivalent replacement rate (again, combined UAGC and land value targeted rate) of $876,000 per annum is collected by TRC for the ongoing capital development and major maintenance programme for the stadium.

The 2001/02 redevelopment saw two new grandstands added; the TSB Stand overlooking the main field’s eastern sideline and the Noel and Melva Yarrow Stand on the western sideline. Further infrastructure enhancements to the venue were completed in 2010 ahead of the 2011 Rugby World Cup, including the main improvement of increasing capacity to more than 25,500 with more covered seating in the two main stands and redevelopment of three uncovered seating and standing areas, namely the south grass embankment which holds 4,000, the north grass embankment which holds 5,322 and 500 additional seats in the southern terrace.

Further improvements were added in 2014/15 including structural repairs and upgrades to both grandstand roofs, the installation of a 70 square metre video display screen, two new lifts, internal refurbishments and other minor improvements around the complex. Today Yarrow Stadium is considered by many to be one of, if not, the leading provincial stadium in New Zealand and New Plymouth now has a highly respected reputation for delivering successful events at the venue.

Yarrow Stadium complex consists of the following facilities: • Four grass sports fields. • The Legends Lounge – capacity up to 500 guests. • The Concourse – 1,100m2 of covered space. • Function rooms. • Parking for more than 200 vehicles. • Players changing rooms with plunge pool and warm up facilities plus a variety of event related rooms. • Gymnasium (restricted to Taranaki Rugby Football Union). • Media facilities for TV, radio, print media and photographers. • Wi-Fi for corporate functions and major events (not for general public). • Stadium sound system, video display screen, floodlights. • Training level floodlighting.

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Yarrow Stadium has hosted Rugby World Cup 2011, FIFA U20 World Cup 2015, Super Rugby and ITM Cup Games. The stadium has also hosted the All Blacks in 2008, 2010 and 2013. Other non-sporting events such as the Crusty Demons have also performed at the stadium. The venue is also used for weddings, expos, conferences and workshops.

Taranaki Rugby Football Union (TRFU) are based at the stadium and as the anchor tenant play all their home games there, rent office space, use the training facilities and gymnasium. TRFU also coordinate club and schools finals matches, representative matches and other rugby related activities. The agreements with TRFU to hire playing and training facilities and lease property expired in 2012. It is the intention of NPDC to enter into new agreements with TRFU as part of this Business Plan going forward.

Sport Taranaki headquarters are based at the complex in a separate building constructed in 2007 and have a lease with NPDC for ground rental.

NPDC has additional sponsorship and naming rights agreements with Yarrows the Bakers 2011 Ltd, NH and MD Yarrow and the TSB Bank.

There are also further rental agreements with Two Degrees Mobile Ltd, and Vodafone NZ Ltd.

Taranaki Rugby Supporters Club lease space, which is used as a clubroom with a bar on event days. Members must be ticket holders to access the space on event days but as they operate their own bar this reduces patronage from the stadium food and beverage operation. This space could be better utilised as a media centre on event days and as a space to hire at other times. The current agreement expires in 2018.

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3. COMPETITIVE ADVANTAGE Yarrow Stadium is the only stadium of its type, size and capability in the Taranaki region. It meets most requirements for the hosting of international sporting events, although various stadium enhancements will present a more compelling choice for international and national sports bodies in the future. The stadium does not meet the requirements for the hosting of international cricket but is suitable for the hosting of domestic Twenty20 cricket.

The Taranaki community enjoys a strong affinity with their regional stadium and are proud to play their part when the region hosts major sporting events. Sell out attendances at All Blacks matches and the well supported 2014 ITM Cup Final are both testimony to the connection between the people of the region and the stadium.

In 2009 the stadium was highly rated by New Zealand Rugby World magazine. At that time the magazine rated the stadium in the top three rugby venues in the world, behind only Millennium Stadium in Cardiff, Wales, and Suncorp Stadium in Brisbane. This individual opinion is not necessarily shared with all commentators or writers and whilst pleasant to reflect on is not necessarily the actual situation in 2015.

When it comes to bidding for international events a “Team Taranaki” approach involving partners, the stadium, district and region enter into a competitive bidding process against other parts of New Zealand. Event owners looking to place their events are commercial organisations who are acting in the best interests of their members or stakeholders. This generates a challenge for stadiums that cannot provide substantial financial returns through areas such as hospitality facilities. Whilst ground capacities are important, and this is reflected in New Zealand Rugby Requests for Proposals (RFP) when bidding for events, equally if not more important is the ability of the venue to deliver high yields back to the event owner/stadium hirer.

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4. STAKEHOLDERS • Taranaki Regional Council. • Taranaki Rugby Football Union. • Yarrows the Bakers 2011 Ltd. • TSB Bank. • Taranaki Rugby Supporters Club. • Sport Taranaki. • Taranaki community.

TRFU has confirmed it supports growth in the use of the stadium. TRFU has upcoming business in the form of training and development of overseas players. Both NPDC and TRFU are required to closely communicate their plans to avoid clashes in future stadium bookings and general operations.

The current arrangements (Trust Deed and Management Agreement) between NPDC, TRC and TST envisage an ongoing funding and operational partnership over the operation, maintenance and development of Yarrow Stadium. The arrangements are structured in such a manner that if either council moves away from the partnership, the arrangement reverts back to its original state, i.e. control of the TST, including all the Trust’s assets and liabilities, reverts back to NPDC.

Sponsorship status Yarrows the Bakers 2011 Ltd, contributed a capital sum in 2002 with the intention that this would cover a period of 20 years. These funds were contributed towards the redevelopment of the stadium in return for a Sponsorship and Naming Rights Agreement of the whole stadium and the west covered stand. The Agreement expires in 2022.

TSB Community Trust (assigned to TSB Bank) purchased naming rights of the east stand at the stadium in 2012 for a three year period. This agreement expires in November 2015 and the renewal of this agreement is currently under consideration.

Taranaki Rugby Supporters Club have an agreement with NPDC to rent a room which is used as a supporter’s club base. This expires in August 2018.

In addition the following organisations are recognised as key clients and/or contractors:

• Chiefs Ltd – client. • KDJ Catering. • Armourguard. • Ticket Direct. • Spotless cleaning. • NPDC Parks Team.

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5. WHAT BUSINESS ARE WE IN? Yarrow Stadium is the regional stadium of Taranaki. Its primary function is the hosting of major international, national and regional field sports events, excluding hockey, due to the requirement of artificial playing surfaces for that particular sport.

Providing a top class playing pitch for rugby, rugby league, football and cricket is a challenging prospect for any stadium and requires skill and resources in addition to smart programming by stadium management and those responsible for major event attractions.

The stadium also plays host to a number of prestigious community sports events, as well as a training facility for TRFU and a local rugby club.

It is easy to overlook the business potential of Yarrow Stadium by seeing the venue just as a major sporting venue. Most stadiums have had to adopt a diverse approach to their business planning in order to maximise revenue streams. The challenge for any stadium is to ensure non-sporting or non- event business compliments rather than competes with the major events programme. Having to turn away a major event because the stadium had been booked for a business conference or small private function would not be a good look or an efficient way to run the business.

Business conducted

Sport • Rugby World Cup (2011) • FIFA U20 World Cup (2015) • International rugby tests (2008, 2010, 2013) • Super Rugby (2007, 2014, 2015) • ITM Cup Rugby (ongoing) • Representative rugby (ongoing) • Club rugby (ongoing). • Schools rugby (ongoing).

Functions • Conferences. • Weddings. • Dinners/parties. • Expos. • Workshops. • Board meetings.

Yarrow Stadium does not meet the requirements for the staging of international cricket, which explains why this is not included.

On the issue of hosting concerts at the stadium, whilst this is physically possible it is believed that New Plymouth is not able to provide adequate accommodation to host a stadium concert audience. With the provision of the nearby TSB Bowl of Brooklands, this venue is considered the premier concert venue for the district and region.

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6. BUSINESS ANALYSIS Business at the stadium currently consists mainly of five to seven ITM Cup games per season, one to two Super Rugby games per season, one NZR test (every three to four years), club finals, club training/matches and representative rugby. In addition the stadium is regularly considered for international events e.g. Rugby World Cup 2011, FIFA U20 World Cup 2015 and Rugby League World Cup 2017.

As previously mentioned interest from other sporting codes and bids for new events are currently underway and will continue to be pursued as and when opportunities arise. However, it cannot be over-stated how competitive this market has become and being successful in event attraction requires more than a stadium fit for purpose, as previously referred to in the section “Competitive Advantage”. Additional resources will be required for ground preparation and recovery work as well as other increased match day operational costs.

The table below illustrates the level of business carried out at the stadium over the past three years.

Event Type Number of Events Events Attendance Expos 2 3,700 Super Rugby 2 22,000 ITM Cup Rugby 7 54,000 Club rugby 12 5,500 FIFA 4 20,000 Other sport 2 250 Sport training 198 4,845 Meetings 26 752 Dinners/weddings 9 1,350 Community 4 1,320

A breakdown of facility usage (2014/15) with explanatory notes follows:

Facility Usage Days Comments Field 1 15 Game days. Wedding ceremonies on the pitch or similar, photo opportunities etc not included. Field 2 57 Mostly training bookings, but some club and schools rugby, plus league games. Field 3 82 Trainings, club rugby, schools rugby and community use. Field 4 76 Trainings, club rugby, schools rugby and community use. Legends Lounge 38 Use of the lounge for game day dinners (13) not included. Presidents/JJ 14 Use of either the Presidents Room or Legends Lounge can Stewart Room preclude use of the other. A lounge booking might use the room(s) for break-out space.

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7. FINANCIAL SUMMARY

Actual Actual Actual Actual Budget 2011/12 2012/13 2013/14 2014/15 2015/16 ($000) ($000) ($000) ($000) ($000) Revenue Expenses recovered 1,466 440 283 597 114 Rental TRFU 37 45 45 45 45 Rental other 0 0 40 32 26 Other rugby 51 6 13 0 7 Ground hire 3 0 9 0 4 TRFU property hire 27 26 27 26 27 Supporters rent 3 5 5 5 5 Telecommunication 15 28 26 26 28 Sport Taranaki rent 9 9 9 9 9 Venue hire 5 7 14 12 13 Signage 77 44 23 43 40 Commission catering 95 71 79 92 60 Commission ticketing 17 42 3 3 5 Grants 130 0 0 1 0 Sponsorship 0 0 0 0 30 TOTAL REVENUE 1,935 723 576 891 413 Expenditure Personnel 151 133 164 187 157 Operating 57 28 53 50 50 Direct costs 0 4 82 0 2 Events 143 282 210 519 160 Venue operation/maintenance 1,193 843 377 595 244 International sports events 1,890 0 0 0 Professional fees 0 0 0 0 97 1 Ticket Direct 2 14 2 0 6 Internal charges 596 277 257 238 417 2 TOTAL EXPENDITURE 4,032 1,581 1,145 1,589 1,133

NET COST (RATES REQUIREMENT) 2,097 858 569 698 720

Notes: 1. Now professional fees and marketing 2. Includes $147K for Parks services

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8. OPPORTUNITIES FOR GROWTH The following key goals have been identified through Yarrow Stadium Masterplan workshops:

1. A programme of national and international events A potential increased events programme is proposed in Appendix A. The success of this programme will be key to gaining repeat and new business from existing and new clients. Increasing venue hospitality spaces will make the stadium a more attractive proposition for major event clients.

2. Hosting key community events Hosting high profile community events at the stadium helps to build a connectedness between the community and the stadium. An improved second playing field with appropriate improved lighting and changing facilities will assist the growth in this operational area. The introduction of at least one artificial playing surface on one of the other playing fields will enable an increased training programme to be established.

3. Maximise the use of Yarrow Stadium In addition to goals one and two above other internal improvements to the building combined with effective marketing strategies will make the venue more appealing to a wider section of the community. An amenity block needs to be provided close to the external playing fields.

4. Optimise visitor and economic impact and promote the Taranaki brand Major events attract visitors and visitors spend money. Close liaison with Venture Taranaki, the regional marketing arm of NPDC, Air New Zealand and other companies and organisations in the business of bringing people to the region will assist in aligning strategies for mutual benefit. Major event programmers must continue to consider the benefits of collaboration to avoid clashes where possible.

5. Strengthen the connection of the people of Taranaki to the Stadium As the home of Taranaki rugby, Yarrow Stadium can create a closer relationship within the community. This can be achieved in a number of ways including the development of a rugby museum, the creation of a stadium brand, the attraction of a wider group of sports fans through a more diverse events programme and wider access in general to other non- sporting community events.

6. Improved financial performance This business plan aims to identify ways in which an improved financial performance can be delivered. It requires a number of different actions, as outlined above and elsewhere in this plan. However, it should be noted and accepted that a comprehensive increase in business activity will also require a review of staffing resources to ensure customers expectations can be met and exceeded. Greater use of playing fields, hospitality and communal areas will all require increased preparation and recovery work, improved booking and venue management systems and effective marketing strategies.

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7. Facility development initiatives to maintain the stadium’s competitive advantage and improve customers experience A list of stadium improvements in order of priority is provided in the Asset Management Plan. The provision of these developments will in some cases increase operational costs and this has yet to be included in this plan.

The growth of business going forward is dependent on a range of different outcomes. Underpinning all of these areas a wide acceptance and understanding is required, that how Yarrow Stadium does business in the future needs to be vastly different from the past. Development and operational outcomes include: • Continuing with a stadium enhancement programme. • Keeping operational costs under control. • Successful multi-sport event bids. • Taranaki Rugby and Chiefs Super Rugby success on and off the pitch. • Maintaining existing and developing new, business relationships. • Effective market research, analysis and marketing. • Exceeding client and customer expectations. • Developing operational capability and effective management.

Growth can be realised through increased: • Event hospitality options and numbers. • Numbers of sports events, hire and recovery fees. • Ticket sales, food and beverage commission. • Business attracted to an improved Legends Lounge and other areas. • Perimeter field advertising signage. • Commission through an improved ticketing contract. • Using technology to up-sell events and services to customers.

Newly created hospitality facilities may also attract increased business from non-event day customers.

However, any new facilities including hospitality rooms, artificial playing field(s) and an amenity block will also create increased operating costs.

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9. POWER SUPPLY Background Yarrow Stadium is supplied with electrical energy from a single point of supply (1,000KVA transformer) from the Powerco network.

Main/standby power is provided at the stadium for events such as rugby matches by a combination of power from the grid and power supplied by a large diesel generator. The generator originally used for this purpose was an 850 KVA unit owned by NPDC which is now located at the Te Henui Sewage Pump Station. This unit was recognised prior to the 2011 Rugby World Cup as being of lower capacity than the stadium actually required. The solution has been to use a containerised 1,250KVA generator rented from Aggreko. The permanently installed cables originally used to connect the generator to the electrical panel at the stadium also proved to be too small for the added capacity of the larger generator and have been replaced.

The site has Time of Use (TOU) metering so the meter records the electrical data every half hour of the day. The data is then collated and billed according to the electricity purchasing agreement in place. The meter is located in the main switchboard room located on the ground floor of the main stand.

There are a number of sub-meters for the main tenancy areas that are read for on charging of the energy.

NPDC has a current Electricity Supply Agreement in place with Meridian Energy, which Yarrow Stadium is party to. The agreement has an expiry date of 31 January 2016. NPDC is currently in the market appraisal/tender process for a new three year supply contract.

A significant part of the electricity bill for Yarrow Stadium is the line charge collected on behalf of PowerCo by the retailer.

The site is on the Powerco E300 Load Group which is based on the transformer size. The average electricity bill for the stadium is around $6,100 per month.

The following are the network charge components and rates as invoiced:

E300 network assets charge This is a charge applied based on the transformer size and is at the rate of $1.85/kVA/month.

E300 assets rebate NPDC has a “gentleman’s” agreement in place with Powerco whereby a 700kVA equivalent rebate is provided as a result of utilising a standby generator to operate the main field lights during night games. This is applied at the same rate of $1.85/kVA /month.

E300 demand charge This is the maximum demand charge and is charged at the rate of $10.45/kVA/month.

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NPDC Energy Management Specialist is of the opinion that the current field floodlighting and control gear is nearing its “end of life” and an independent review has been commissioned.

Consideration should be given to possible solution options if this opinion is supported by the outcome of the independent review.

The current trend towards LED lighting solutions now includes sports stadia and there are several examples around the world. If Yarrow Stadium were to move to LED floodlighting there would be a number of improvements including:

• Instant restrike of the lighting (no delay after power up). • Lower electrical maximum demand. • Better control of the lighting, including combining with musical effects etc.

Stadium electrical operation Currently during events where the field lighting is required the stadium load is carried in the most part by the generator with the mains supply acting as a back-up. This is to avoid the crippling costs of the increased maximum demand charges and the capacity of the generator to carry the full load of the stadium.

• If the generator were to fail during an event then the load would be picked up by the mains supply seamlessly and the extra costs carried as a penalty. • If the mains supply fails during an event then the generator will pick up the small load normally maintained on the mains (for technical control reasons) and continue to supply the stadium.

Other possibilities If there continues to be a requirement for two or more power supplies to give continuity of operation it would be sensible to consider all of the possible options.

• Continue with current arrangement. • Investigate the possibility/efficiency of a separate supply from the PowerCo network with no standby generator. • Use a smaller generator (LED option only) • Investigate other options, e.g. install a UPS/standby generator system (unlikely to be cost effective).

Field lighting analysis/ assessment An independent stadium field lighting assessment was carried out in September 2015. The report was due to be submitted after this business plan was drafted. It is expected that any actions required as a result of the recommendations in the assessment report will not impact negatively on the business plan.

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10. EVENTS ATTRACTION FUND

In November 2005 NPDC resolved to adopt key principles for a District Events Strategy which focused only on strategic events. NPDC endorsed the updated criteria at its meeting on 27 June 2006. These principles stated that the purpose of the strategy was to support:

• Major events which have the impact and profile necessary to change local, national and international perceptions about New Plymouth District, forming part of a coordinated marketing strategy and contributing to a great Taranaki lifestyle.

• Major events which attract domestic and international visitors in sufficient numbers to support the realisation of the tourism strategy’s goals for visitor nights and tourism expenditure, therefore contributing to the Taranaki economy.

• Major events which strongly reflect the values of the Taranaki brand “like no other” and become inextricably linked to their location.

• Major events which utilise NPDC’s major event venues, helping to ensure their viability and meet their revenue targets.

• Major events which help to address seasonal gaps in visitor numbers, therefore contributing to a more sustainable tourism industry.

NPDC established the Major Events Fund (MEF), which is administered by Venture Taranaki. This fund currently stands at approximately $700,000 per annum and has recently been index linked. The MEF has been established with the following vision in mind:

“Event experiences that get people talking and excited about New Plymouth District as a place to live, work and visit.”

The above statement encapsulates an event vision where:

• Visitors and residents alike are amazed at the major events that are hosted in New Plymouth District;

• The community are proud of the quality, status and professionalism of the major events in the District; and

• Visitors, performers and event organisers enjoy great experiences that entice them to return.

Since the MEF was established NPDC venue and event managers have successfully applied to the fund for the staging of major events at Yarrow Stadium. However, as the fund is also used to support other major events such as WOMAD, ITU World Cup Triathlon, concerts at the TSB Bowl of Brooklands, NZ Surf Festival, NZ Tattoo and Art Festival, Taranaki International Arts Festival, AmeriCARna and many others, it can easily be understood that applications regularly outstrip the amount of funding available from the fund.

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The Forsyth Barr Stadium in Dunedin has an event attraction fund of approximately $400,000 just for the stadium. Other stadiums in Hamilton, Whangarei, Rotorua as well as the main cities also have significant event attraction funds aimed at bidding successfully for major events. The question is often asked: “What are the benefits of investing in the attraction of major events to New Plymouth?” The short answer is economic but of course it is much wider than this.

For example, New Plymouth hosted an All Blacks versus France test in June 2013, which attracted a crowd of 23,500 (sold out) and attracted 7,500 visitors to Taranaki. Fifty-eight per cent of these stayed in commercial accommodation and 16 per cent had never been to Taranaki previously. The total economic impact of visitor expenditure was $4.53m which created a regional GDP contribution of $1.76m.

In addition to the economic benefits, non-quantitative regional benefits include:

• Pride, vibrancy, social, feel good factor. • Demonstration of New Plymouth and Taranaki’s ability to ‘deliver’. • Breaks provincial mould. • Showcased New Plymouth and Taranaki on a national/international stage. • Influenced perceptions positively. • Potential skilled population attraction (longer-term). • Enhanced likelihood of returning.

For this business plan it has been assumed that the MEF remains at $700,000 per annum (index linked) and approximately $100,000 to $200,000 is allocated for the attraction of major sporting events. These funds are generally used to make New Plymouth, Taranaki a more compelling destination for event organisers or promoters. The funds are not added to Yarrow Stadium revenue.

Footnote It may well be timely to review the purpose and provision of the MEF. When this was first introduced in 2005 it gave New Plymouth District a point of difference to some other parts of New Zealand. However, with the current competitive climate between different areas of New Zealand and an increasing number of ‘event attraction funds’ it could be argued that this has helped to create a ‘hand out’ mentality. This competitive environment may also have contributed towards increased public subsidy of privately run events with questionable benefits back to the community.

An alternative use of event attraction funds may be to use such funds to bolster venue marketing budgets aimed at driving more business to the venues.

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11. FINANCIAL SUMMARY GOING FORWARD

Budget 2016/17 2017/18 2023/24 2015/16 ($000) Major Event ($000) ($000) ($000) Revenue Expenses recovered 114 159 292.5 1 2008 Rental TRFU 45 45 45 50 Rental other 26 27 27 28 Other rugby 7 7 7 9 Ground hire 4 4 4 32 2 TRFU Property hire 27 27 35 3 35 Supporters rent 5 5 5 07 Telecommunication 28 29 30 30 Sport Taranaki rent 9 9 9 9 Venue hire 13 51.5 160 4 102 Signage 40 40 44 55 Commission catering 60 70 100 5 100 Commission ticketing 5 5 7 10 Grants 0 0 0 0 Sponsorship 30 306 30 6 100 TOTAL REVENUE 413 508.5 795.5 760 Expenditure Personnel 157 2059 2459 2559 Operating (generator) 50 50 50 0 Direct costs 2 0 0 0 Event Costs 160 164 380 194 Venue operation/maintenance 244 206.5 253 250 Professional fees and marketing 97 100 108 100 Ticket Direct 6 3 0 0 Parks services 147 165 172 202 2 Internal charges 270 270 270 270 TOTAL EXPENDITURE 1,133 1,163.5 10 1,478 10 1,271 10

NET COST (RATES REQUIREMENT) 720 655 682.5 511

Notes/ Assumptions: 1. All Blacks v. Argentina Sept 2017. Potential venue for Rugby League World Cup 2017 not included at this point. 2. Assumes new artificial pitch - $80 x two hours x five nights x 40 weeks, plus additional maintenance costs. 3. Assumes improvement in office accommodation and increase in rent. 4. NZR/AB, Chiefs, T20 Cricket plus new convention business added. 5. Assumes increase from All Blacks v Argentina, Chiefs plus business as usual. 6. Assumes TSB Bank renews sponsorship of east stand on similar terms. 7. Assume lease not renewed. Alternative increase in revenue proposed in venue hire. 8. Assumption of at least one new major event added to the programme. 9. Assumes new events/venues staff for busier schedule. 10. Does not include costs for installation of new stadium wi-fi or development of app (see Appendix B, 8d.)

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Appendix A: Potential Yarrow Stadium Events Programme

• One New Zealand Rugby Test (every two years).

• Five to seven ITM Cup games per season.

• Two Super Rugby games per season.

• Three 20-20 Domestic Cricket games per season.

• One All Whites game (every two years).

• One A League game per season.

• One to two NRL games per season.

• Team Taranaki Football – home games.

• Local sport code finals.

• Club training/matches.

• One on-field entertainment event.

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Appendix B: Opportunities for Growth (how to achieve identified goals)

The following key goals have been identified through Yarrow Stadium Masterplan workshops:

1. A programme of national and international events A potential increased events programme is proposed in Appendix A. The success of this programme will be key to gaining repeat and new business from existing and new clients. Increasing venue hospitality spaces will make the stadium a more attractive proposition for major event clients. The introduction of at least one artificial playing surface on one of the other playing fields will enable an increased training programme to be established.

A major event is a ticketed event, that requires full hire of the stadium facilities and ground one, has over 2,500 attending and/or is broadcasted (either TV, radio or web).

a) What does a best possible event programme look like? - Refer appendix A.

b) Ensure staffing resource is allocated to business development. - Business Development Lead to focus on developing and maintaining relationships with all sports codes at both national and regional level. - Budget allocated to host key clients to events to showcase stadium in operational mode, familiarisation visits to the venue to develop new relationships.

c) Ensuring the stadium complies with the minimum specification requirements for all targeted sports codes. - Yarrow Stadium Co-ordinator to liaise with sports codes and ensure all minimum specifications are on file and that the venue complies. Regular contact/research to ensure any changes to specifications are noted and complied with.

d) Develop a point of difference from other regional stadiums. - Ensure operationally the stadium is resourced to provide the highest level of service. - Build a reputation in delivering events effectively and always achieving 100 per cent - Explore the technology enhancements – Wi-Fi capability, venue app. - Offer marketing support to events that establish a point of difference to clients. Leverage support from local media partners to provide a strong campaign around events. Stay true to the strategy that the best marketing or way to sell a venue to a client is to ensure their event is a success, which includes achieving targeted attendance numbers.

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e) Effective and efficient delivery of events. - Implement an event booking and management system (software) to ensure the efficient delivery of events. - Develop Statement of Proposals to ensure stadium staff operates at the highest level.

2. Hosting key community events Hosting high profile community events at the stadium helps to build a connectedness between the community and the stadium. An improved second playing field with appropriate improved lighting and changing facilities will assist the growth in this operational area. - Key community events are significant events. All sports players should aspire to play on number one pitch. Key community events are finals of any regional sport code and other significant tournaments. a) Collaborate with rugby, football, league to ensure all finals are played on number one field. - Investigate costing options. How can operations be done differently to reduce cost? - Review of cleaning contract to allow different pricing models for sections of venue. - What infrastructure can be put in place to reduce access and to ensure power and cleaning is not required in all spaces. - Assist clubs to access other funding sources to cover costs (TSB Community Trust, New Zealand Community Trust, other funding). b) Work to ensure all significant tournaments are played on number one field.

3. Maximise the use of Yarrow Stadium In addition to numbers one and two above other internal improvements to the building combined with effective marketing strategies will make the venue more appealing to a wider section of the community. a) Implement a strong marketing campaign. b) Implement an event booking and management system that will allow effective utilisation of the venue. c) Have a role dedicated to booking enquiries (to cover all venues) to respond to enquiries, book and contract events. The event is then handed to the operations team to plan the event delivery. (Note: the Venue Coordinator and Venues Lead would still be involved in the major event booking process.) - Ensure a clear and detailed booking policy is established to allow the flexibility to programme major events while providing some certainty to regular users regarding access. d) Ensure the Legends Lounge has the facilities to meet market requirements for meetings, conferences and functions - Partitioning of room.

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- Technical - data projector, sound system. - Catering facilities meet requirements, including day delegate rates e) Parks Team develops a strategy to ensure optimal usage and scheduling of repair work.

4. Optimise visitor and economic impact and promote the Taranaki brand Major events attract visitors and visitors spend money. Close liaison with Venture Taranaki, the regional marketing arm NPDC, Air New Zealand and other companies and organisations in the business of bringing people to the region will assist in aligning strategies for mutual benefit. Major event programmers must continue to consider the benefits of collaboration to avoid clashes where possible. a) Venue Taranaki needs to have a regional tourism strategy that supports events coming into the region. This involves aligning regional marketing initiatives with major events. b) Develop a relationship with Air New Zealand and/or Jetstar to produce flight and event packages. c) Have a strong relationship with our ticketing partner to maximise nationwide databases and communication with national audience.

5. Strengthen the connection of the people of Taranaki to the stadium As the home of Taranaki rugby, Yarrow Stadium can create a closer relationship within the community. This can be achieved in a number of ways, including the development of a rugby museum, the creation of a stadium brand, the attraction of a wider group of sports fans through a more diverse events programme and wider access in general to other non- sporting community events. a) Develop a brand strategy to create a connection. Yarrow Stadium has its own logo that is used consistently in communications. The logo sits under the NPEventvenues brand which encompasses all venues under NPDC management. The NPEventvenues brand is a recognisable brand that customers can associate with quality, exciting events. - Strong social media strategy. - Facebook Likes 15,000 (Yarrow Stadium has its own website). : Dedicated social media role on event day ensuring regular communication with social community. - NPEventvenues database 50,000. - Website ensures a strong web presence with good imagery (measured by number of visits to the site). b) Develop a fan experience/audience development programme ensuring that people attending our venue have a sense of connection.

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c) Every ticketed event has a pre-event email with Yarrow branding to all ticket holders providing key information to make their visit easier. - Regular meetings and communication with neighbours to update them on our activities, keep them informed and raise any issues that may impact on them. Our neighbours can be our voice in the community and an advocate for the venue. - Yearly neighbourhood meeting at venue to update on venue events. - Regular newsletter and schedule of events d) Regular venue tours. e) Maintain our volunteer database and ensure regular communication and opportunities to be part of the venue events. f) Strong staff training programme (casual and volunteers groups) around Yarrow’s values and customer experience. g) All staff to be in uniform.

6. Improved financial performance This business plan aims to identify ways in which an improved financial performance can be delivered. It requires a number of different actions, as outlined above and elsewhere in this plan. However, it should be noted and accepted that a comprehensive increase in business activity will also require a review of staffing resources to ensure customers expectations can be met and exceeded. Greater use of playing fields, hospitality and communal areas will all require increased preparation and recovery work, improved booking and venue management systems and effective marketing strategies. a) Food and beverage commissions are maximised to become one of the largest revenue streams for the venue. - Work with clients to ensure maximising returns. Gate opening times to ensure spectators arrive early. - Have food and beverage outlets that are attractive, have offerings that appeal to audience taste. Warm/inviting for customers. - Ensure Legends Lounge and other hospitality spaces have a point of difference and are aesthetically appealing. Create an environment that is attractive to customers. b) Facilities are set up to ensure operation requirements are cost-effective. - Fob security system will reduce guard placement in certain areas - Closing of vomitories and other spaces to reduce staff costs c) Investigate fees and charges to ensure they meet market expectations and cover agreed costs. d) Ensure appropriate agreements are in place with tenants. - TRFU tenant agreement. - TRFU venue hire agreement.

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e) Implement a sales campaign for arena signage and investigate other commercial partnerships

7. Facility development initiatives to maintain the stadium’s competitive advantage and improve customers experience A list of stadium improvements in order of priority is provided in the Asset Management Plan. The provision of these developments will in some cases increase operational costs and this has yet to be included in this plan.

The growth of business going forward is dependent on a range of different outcomes. Underpinning all of these areas a wide acceptance and understanding is required that how Yarrow Stadium does business in the future needs to be vastly different from the past.

Development and operational outcomes include: - Continuing with a stadium enhancement programme. - Keeping operational costs under control. - Successful multi-sport event bids. - Taranaki Rugby and Chiefs Super Rugby success on and off the pitch. - Maintaining existing and developing new, business relationships. - Effective market research, analysis and marketing. - Exceeding client and customer expectations. - Developing operational capability and effective management.

Growth can be realised through increased: - Event hospitality options and numbers. - Numbers of sports events, hire and recovery fees. - Ticket sales, food and beverage commission. - Business attracted to an improved Legends Lounge and other areas. - Perimeter field advertising signage. - Commission through an improved ticketing contract. - Using technology to up-sell events and services to customers.

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APPENDIX C: Performance Measures – Next Ten Years

Level of Service Actual Target Performance Measure (Key Goals) 2014/15 2015/16 2016/17 2017/18 2018-2025 13 events 11 events 10 events 77 events 1. A programme of national and The total number of major events (by event 13 major events 54,000 70,000 103,000 560,000 international events type) 96,000 attendees attendees attendees attendees attendees 2. Hosting key community events Number of key community events 2 2 3 10* 21 Total community visitation (not including 16,397 16,000 16,000 24,000* 24,000 major events and key community events) 3. Maximise the use of Yarrow Number of functions 9 10 10 10 15 Stadium Number of conferences/meetings 26 25 25 25 30 4. Optimised visitor and economic Number of Expos/Exhibitions 2 2 2 2 2 impact and promote the Taranaki brand Number of Community Sport 14 15 15 15 15 Number of Community Other 0 - - - - Number of Trainings 198 200 200 300* 300 Satisfaction with the quality of venues for 5. Strengthen the connection of the entertainment, cultural and sporting events in 94% 90% 90% 90% 90% people of Taranaki to the Stadium the district (NRB Survey) $1,271,000 6. Improved financial performance Total facility expenditure $1,589,000 $1,112,000 $1,163,500 $1,508,000 p.a

* Assumes business growth from installation of artificial pitch