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Otorohanga Kiwi House and Native Bird Park Redevelopment

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Otorohanga Kiwi House and Native Bird Park Redevelopment Private and Confidential OTOROHANGA KIWI HOUSE AND NATIVE BIRD PARK REDEVELOPMENT BUSINESS CASE Prepared for Otorohanga Kiwi House Charitable Trust 1 November 2019 A member of Crowe Global TABLE OF CONTENTS 1 INTRODUCTION ............................................................................................................................ 4 SCOPE OF WORK................................................................................................................................... 5 EXCLUSIONS OF SCOPE ......................................................................................................................... 6 2 THE OTOROHANGA KIWI HOUSE .............................................................................................. 8 GOVERNANCE STRUCTURE .................................................................................................................... 8 VISION AND GOALS ................................................................................................................................ 8 TRACK RECORD .................................................................................................................................... 9 FINANCIAL SUSTAINABILITY .................................................................................................................... 9 3 THE NEED FOR REDEVELOPMENT OF KIWI HOUSE FACILITIES ........................................ 10 EXISTING VISITOR AMENITIES BUILDING ................................................................................................ 10 4 KIWI HOUSE REDEVELOPMENT ............................................................................................... 11 KIWI HOUSE SITE ................................................................................................................................ 11 HISTORY OF THE PROJECT ................................................................................................................... 11 REDEVELOPMENT PLAN ....................................................................................................................... 12 BENEFITS OF THE REDEVELOPMENT FOR THE KIWI HOUSE .................................................................... 14 KEY MILESTONES & CURRENT PROGRESS ............................................................................................ 15 VISITOR EXPERIENCE .......................................................................................................................... 15 MARKETS ............................................................................................................................................ 16 5 DEVELOPMENT COST AND FUNDING SOURCES .................................................................. 17 DEVELOPMENT COST ........................................................................................................................... 17 FUNDING SOURCES ............................................................................................................................. 18 6 ACHIEVEMENT OF PGF OUTCOMES ....................................................................................... 19 ADDITIONALITY WITHIN THE REGION ..................................................................................................... 19 INCREASE ECONOMIC OUTPUT ............................................................................................................. 19 INCREASE PRODUCTIVITY AND GROWTH ............................................................................................... 20 INCREASE LOCAL EMPLOYMENT AND WAGES ........................................................................................ 20 INCREASE EDUCATION AND / OR TRAINING ............................................................................................ 20 CONSERVATION ACTIVITY, EDUCATION AND ADVOCACY ......................................................................... 21 SUSTAINABLE USE OF AND BENEFIT FROM NATURAL ASSETS................................................................. 22 ENHANCE COMMUNITY WELLBEING ...................................................................................................... 23 7 ALIGNMENT WITH STAKEHOLDER OBJECTIVES AND STRATEGIES ................................ 24 LETTERS OF SUPPORT ......................................................................................................................... 24 TE WAKA WAIKATO REGIONAL ECONOMIC DEVELOPMENT AGENCY ....................................................... 24 HAMILTON & WAIKATO TOURISM .......................................................................................................... 25 OTOROHANGA DISTRICT COUNCIL ........................................................................................................ 25 WAIKATO REGIONAL COUNCIL .............................................................................................................. 26 DEPARTMENT OF CONSERVATION ......................................................................................................... 26 LOCAL IWI ........................................................................................................................................... 27 CONSERVATION GROUPS ..................................................................................................................... 27 8 STRATEGIC RISKS ..................................................................................................................... 29 9 VISITOR DEMAND PROJECTIONS ............................................................................................ 30 INTERNATIONAL VISITORS AND NIGHTS IN THE WAIKATO ........................................................................ 30 DOMESTIC VISITORS AND NIGHTS IN THE WAIKATO ............................................................................... 31 TOTAL INTERNATIONAL AND DOMESTIC VISITORS AND NIGHTS ............................................................... 32 DAY VISITORS TO THE WAIKATO ........................................................................................................... 32 REGIONAL MARKET SHARE ANALYSIS ................................................................................................... 32 NORTH KING COUNTRY ........................................................................................................................ 33 GROUP TOUR VISITORS ....................................................................................................................... 34 Otorohanga Kiwi House Charitable Trust – Private & Confidential Page 2 Business Case for Planned Redevelopment 1 November 2019 KIWI HOUSE VISITOR PROJECTIONS ..................................................................................................... 34 10 FINANCIAL PROJECTIONS ........................................................................................................ 38 OPERATING REVENUE ......................................................................................................................... 38 OPERATING EXPENDITURE ................................................................................................................... 41 11 ECONOMIC BENEFITS OF THE KIWI HOUSE REDEVELOPMENT ........................................ 45 CURRENT ECONOMIC IMPACT ............................................................................................................... 45 FUTURE ECONOMIC IMPACT OF THE KIWI HOUSE .................................................................................. 46 INCREMENTAL ECONOMIC IMPACT GENERATED BY THE REDEVELOPMENT .............................................. 48 DOWNSTREAM ECONOMIC IMPACT........................................................................................................ 50 CONSTRUCTION IMPACT ....................................................................................................................... 50 12 SOCIAL AND OTHER BENEFITS OF THE EXPANSION .......................................................... 51 INCREASED EMPLOYMENT .................................................................................................................... 51 INCREASED VISITATION ........................................................................................................................ 51 INCREASED GUEST NIGHTS .................................................................................................................. 51 BENEFITS TO THE KIWI HOUSE ............................................................................................................. 51 APPENDICES (SEPARATE DOCUMENT) – INDEX ........................................................................... 53 APPENDIX 1 – KIWI HOUSE PROJECT TEAM .................................................................................. 54 KEY PERSONNEL ................................................................................................................................. 54 PROJECT TEAM ................................................................................................................................... 54 APPENDIX 2 – PROJECT MANAGEMENT PLAN .............................................................................. 55 APPENDIX 3 – ARCHITECT’S DRAWINGS ........................................................................................ 56 APPENDIX 4 – LETTERS OF SUPPORT ...........................................................................................
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