Revenue
The funding of the redevelopment of jade stadium has played one of the most contentious roles in the planning of the entire project. The sticking point for many was the level of input by the city council, of tax payers money into the Jade Stadium project. This process is shown to have been very political and taken more time than any other part of the planning chain.
$43 million was needed to fund the redevelopment of Jade Stadium. $4 million of this was provided by the Christchurch city council, which was also responsible for underwriting the loan for the rest of the project. This loan has been planned to be fully repaid in 16 years, according to the business plan.
Other major sources of revenue for the Jade Stadium redevelopment have been, Canterbury Rugby, Canterbury and New Zealand Cricket and the catering licensee, Spotless Services Limited.
All were involved in providing a business plan, which proved the viability of the project and the capability of Jade Stadium Limited to repay the loan in the prescribed time frame.
Grants were also received for the project from other sources, including The Community Trust, The Canterbury Foundation and the Lotteries Grants Board. The business plan also explored other avenues for gaining additional revenue; these included the possibility of naming rights, and by way of rental and the use of the corporate facilities. With the apparent detail of the business plan mentioned in the articles, although not actually shown, it can be taken that a huge amount of time, research and resources went into creating a financially stable and more importantly a viable proposal to be put to the council and public. Without this the project would have fallen over at the first stage.
Stakeholders
Because of the nature of the project, the number of stakeholders is huge. Not many in the local or even wider community are exempt from trickle down effects related to the improvements at Jade Stadium. Whether it be on a strictly financial basis or even just from increased enjoyment and easier viewing the majority of Christchurch is affected and are therefore by definition stakeholders.
All those involved in the planning of the redevelopment along with those who carry out the redevelopment, the contractors and subcontractors. With that are interest groups; like sports codes who will use the facility. Local business will have a vested interest, for with the improved stadium comes more high profile games, fixtures and people, boosting visitors to the city and with that comes an increase in spending, boosting the local economy. Finally those that own the new stadium, namely the people of Christchurch and Canterbury are also stakeholders. With such a wide spread of stakeholders involved with the project, the Jade Stadium Board, those responsible for the redevelopment, had to consider a diverse range of interests and opinions when designing, planning and carrying out this project.
Jade Stadium Project Lifecycle
As with any major project, Jade Stadium’s redevelopment was made up of a number of stages, to which the project followed. Due to the fact that the is not yet complete some of these stages have yet to be done.
1. Feasibility Study / Initiation
Although the articles do not actually talk about a feasibility study, it can be assumed that there was a recognition of the need for an improved or better stadium than the one currently used. ie. a need to redevelop Jade Stadium into a higher quality facility to keep pace with similar facilities around the country. This is shown clearly in the article.
“Unless we get a ground or stands of an appropriate quality, then we will not fear very well”. (The Press, 20.1.99).
2. Planning
The initiation stage was followed up with a substantial amount of planning. As stated earlier a huge emphasis was placed upon planning, this planning was not just on the actual design of the stands and buildings but also involved the business plan. To show that this project was a commercially possible venture and one that would be beneficial to all parties involved an extensive business plan was produced. Plans also were responsible for defining the project.
Setting the outlines and the estimations as to proposed cost (which varied from $30-45 million), and time frame for completion which was constant around 18 months. The Jade board had to be sure that they were proposing a commercially sound operation. They stated to this point that the business plan they produced was the most important document in the project. The business plan set the boundaries to which jade stadium could be a successful venture commercially. It identified needed levels of revenue and possible sources. This is why it was such a lengthy process, in order to get it completely right.
“This is a one off development and we want to make sure we get it right first time”. (The Press,
6.8.99) The business plan was the single biggest factor in the securing the backing of the city council and thus making the project possible. The plan was also a contributing factor in gaining support from Canterbury Rugby and Canterbury and New Zealand Cricket.
3. Implementation / Production
The stage of the project currently being employed. The actual construction of the stadium, putting the plans into action. As the articles taken for this review are not highly relevant to this stage or the ones proceeding it, not a lot of information can be used, but it is relevant to note that construction of this project could not go ahead with out finalisation of the planning stage.
4. Control / Closure
Control of the Jade Stadium project is relevant throughout the entire project life cycle. The bulk of this responsibility came down to Jade Stadium Limited, Board of directors especially
BMGT 315: Literature Reviews, 2002 • 110 during the planning stages, overseeing changes to plans, cost management. They will also be responsible for overall quality control. Their role in Closure will be to sign off the project and review results and report back to all stakeholders, namely telling the people of Christchurch how the project went.
Conclusion
In concluding this review several key points are revealed as well as a defined process in project management. Firstly with such a wide range of articles used to get relevant information some of the points made have been drawn on slight assumptions, this is due to the lack of specific explanation within the text. It must also be considered that the information presented from newspaper articles may only describe a single point of view or side of the story, and that in general all articles relating to the redevelopment of jade stadium, held a more positive slant or position towards the development and the development team. The key points contained within the review begin with defining the uniqueness and temporary nature of a project and how jade stadium is a one off major project. The revenue provided to support such an expensive project comes from a wide and varying plane, with the use of a business plan one of the most important tools in the development of Jade Stadium. It can be noted that a great deal of importance was placed upon the planning phase in order to do it once and do it right. And that the project followed the basic project life cycle model.
References
Currie, S. (1999). The Jade Board. The Press, 20 January, 1996, p 34.
McGoldrick, B. (2000). What about a total Jade upgrade? The Press, 26 August, 2000, p 10.
Scanlon, G. (2000). $43m plea for Jade Stadium. The Press, 7 April, 2000, p 1.
Tutty, K. (1999). Progress on stadium plans. The Press, 6 August, 1999, p 22.
Tutty, K. (2000). Jade Stadium access settled for five years. The Press. 14 October, 2000.