Auckland Council’s project oversight group will start its work this week on the next phase of due diligence and risk assessment of the V8 Supercars deal.
The Council's Strategy and Finance Committee last week endorsed an Auckland Tourism, Events and Economic Development (ATEED) recommendation to host an annual V8 Supercars event at an upgraded Pukekohe Park, subject to final sign off by the project oversight group.
The proposal will see the popular race secured for five years with an option to renegotiate a further five years, after ATEED, the Ministry of Economic Development and Counties Racing Club partnered to work with V8 Supercars and ensure the event stays in New Zealand.
V8 Supercars will underwrite the annual, three day event in a sponsorship deal which protects ratepayers from financial risk.
Deputy Mayor Penny Hulse says Aucklanders need to understand that a fine tooth comb has been run over the proposal and the individuals and the organisations involved.
"However the process is not over. Last month Council agreed to my proposal for a project oversight group to be established for the V8 event . The Strategy and Finance committee voted on the membership of the group last week, which will include up to five councillors as well as the chair of the Franklin Local Board."
The project oversight group will review the full examination and risk analysis that ATEED has already undertaken on behalf of Auckland ratepayers.
"A deal will only be signed once that group is confident that the due diligence and risk reports meet Auckland Council requirements.”
"The Auckland proposal will be a circuit race at an existing venue not a street race. That means lower costs and fewer risks. ATEED’s due diligence on this event has included the learnings from Hamilton's V8 experience," says Cr Hulse.
"The experience of the Supercars' organisation and Audit New Zealand recommendations from its investigation into the Hamilton event have been taken into account. In our case V8 supercars as event promoter is taking the risk."
ATEED will invest approximately $2.1 million per year for five years in the event. This will include a one off capital grant of $2.214 million towards the $6.6 million upgrade of Pukekohe Park and a $1 million annual sponsorship fee.
V8 Supercars is underwriting the event, while the Ministry of Economic Development and venue owners Counties Racing Club also have a significant stake in the event which is expected to be televised in 137 countries.
“This is a great event that a lot of people are excited about. We just need to make sure that every effort has been made to ensure it’s a success all round for Auckland.”