2011/12 Report - Canterbury Tennis

WILDING PARK FOUNDATION INCORPORATED
ANNUAL REPORT & FINANCIAL STATEMENTS FOR
YEAR ENDING 30 APRIL 2012
The last 12 months can only be described as difficult. As a consequence of the earthquake on 22 nd
February 2011, Wilding Park suffered major damage. While that occurred in the previous financial year,
the full effects of the damage were not clearly known as at last balance date on 30 April 2011. Since that
time, there has been a tremendous amount of work carried out on Wilding Park by a large number of
people. Unfortunately however, progress during the year has not been as fast as the Board initially hoped
because it has become apparent as matters have progressed, that the issues surrounding Wilding Park are
numerous and complex and that significant deliberation is required before decisions are made as to the
future of the complex.
During the year, there has been significant investigative work carried out on the Park. Geotechnical
Reports have been obtained on the land quality. The reports show that the land quality is extremely poor.
That poor land quality makes repair of buildings expensive and in the case of the outdoor courts,
reinstatement or replacement, problematic.
Most of the buildings at the Park have also been seriously damaged. It appears that the administration
building and adjoining indoor court complex are able to be repaired although at significant cost.
However, these buildings are well insured and the repair cost is significantly less than the insurance cover.
The other buildings, namely the outdoor wooden stands, the memorial stand and the catering building
have all suffered major damage and the cost to repair those buildings is either in excess of or close to their
insured value. Resolution of the insurance claims in respect of the buildings were still unresolved as at
balance date and is still progressing as at the date of this report.
The Foundation also had insurance cover of $25,000.00 per court over 30 outdoor courts. Payment has
been received from the insurers.
Decisions are still to be made as to the future of Wilding Park. Since balance date, there has been
consultation with the local clubs to advise them of progress and the possible options available. That
consultation process will continue until decisions are made about the future of Wilding Park.
In that regard, the Board, in conjunction with the Board of TCRI have considered three possible scenarios.
These are:-
(a) Stay at Wilding Park and reinstate the whole facility. That does not seem a likely outcome given
the poor ground conditions and the uninsurable risk which would arise in the replacement of
outdoor courts.
(b) Relocate the entire facility to a new location. That option is still under investigation. It is fair to say
that it involves substantial cost and the potential for there to be a significant loss of value from the
realization of Wilding Park assets.
(c) Repair the administration building and indoor centre at Wilding Park but establish a new satellite
playing facility of a minimum of 16 new courts and a new location. Again, consideration of this
alternative is still being undertaken.
The effects of the earthquake have been substantial. Those effects not only relate to the playing of tennis
but also to the finances of the Foundation. Because of the low quality land which comprises the Park, it
has become apparent that the previous book values for the land and various fixed assets were overstated.
There has accordingly been a significant right-down in the accounts in some of the fixed assets to reflect
the new reality in which we now find ourselves. Those right-downs are simply a consequence of the
availability of more information about the land which underlies Wilding Park and the potential
reinstatement costs of various facilities.
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