Official Information Request - 9 July 2017

Sent: Tuesday, 25 July 2017 1:34 p.m.

Subject: TRIM: Requests for information - Crankworx

I refer to your request for information of 9 July 2017 regarding Crankworx, and reply below as per your email:

1.) How much did the council pay Crankworx?

Council has agreed to provide an underwrite for Crankworx up to $500,000 spread across the 2015-2021 years.

The underwrite called upon in 2015 was $94,000 and in 2016 was $39,000. The underwrite has not been called upon for the 2017 event.

2.) I read in the Daily Post that the council owns a 49% share in this commercial business.

Was the money you paid them for purchasing this share holding? If not, what was the reason?

Crankworx Rotorua is run in conjunction with Crankworx Events Inc (the Canadian owners of the event), local organiser Tak Mutu and not-for-profit company Mountain Bike Events Ltd (a joint venture between Rotorua Lakes Council, Skyline Rotorua and Tak Mutu).

This joint venture was established in October 2014.

There was no purchase of shares.

3.) I read that the event had a $4.5 million "impact" on Rotorua.

Did the council (and rate payers) receive some "impact" as well?

If any, how much?

Council will receive a payment, once financials have been finalised, as the event turned a profit of about $8,000 this year.

The economic impact is a general measure of the benefit accrued to a local city/community (residents and ratepayers) from an event and uses various methodologies, including a survey of people who attended events at the Skyline venue. There were also events held elsewhere.

More than 95% of visitor spectators surveyed were in Rotorua specifically for the festival and visitors to the festival stayed in Rotorua an average 7.8 nights

Crankworx Rotorua reached an international viewing audience of 11.3m and 121 media representatives attended to cover the event, including 61 from overseas.

940 athletes competed in 17 events over 9 days including 302 in the national schools championships.

362 children participated in Kidsworx.

Most of the 306 volunteers who assisted during the festival were locals and there were two 'locals days' providing free entry to the Skyline venue for locals. Organisers have already committed to two locals days next year.

We are obliged to advise that you may contact the Ombudsman at the address below if you have any concerns with the response provided by Council, by writing to:

The Office of the Ombudsman

PO Box 10 152

WELLINGTON 6143

Alternatively, you may email info@ombudsman.parliament.nz or use the online complaints form available at www.ombudsman.parliament.nz/make-a-complaint.

Regards