SUPPLIED

A concept design for the indoor arena, which was touted to attract international acts.

 A new 12,000-seat arena for Wellington would almost double the 40 events held at the TSB Arena annually, bringing in events worth about $26 million to the region.

Wellington misses out on large performances, family and sport events because it does not have an appropriately-sized venue, so a $200m indoor arena was proposed.

A draft report presented to the Wellington region's mayors on Tuesday put forward the strategic case for the new arena, paving the way for more work to be done.

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A report presented to regional mayors at a meeting of the Wellington Regional Strategy Committee on Tuesday puts forward a strategic case for a new indoor arena.

The next steps included further site investigation and market analysis to determine the demand and feasibility of ancillary commercial opportunities, the development of concept plans and the review and update of capital cost estimates, with the operating model and financial projections yet to be determined.

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The region's mayors were keen to move forward quickly and were told they could expect an update on locations and costs in the coming months.

They were told the TSB site at Queens Wharf was being looked at as a location and there were five potential sites in the waterfront/rail vicinity, but required geotechnical analysis, which would be a "highly expensive process".

It is understood the shortlist of sites include: the TSB Arena, the BNZ site at CentrePort, and the Westpac Stadium concourse.

The report, commissioned by the Wellington Regional Economic Development Agency (Wreda), was compiled by sport and entertainment agency, Gemba and is dated December 1, 2017. 

The report recommends an ideal seating capacity of 12,000 to maximise opportunities and compete with Auckland, Christchurch and Dunedin venues, which hold between 12,000 and 31,000 people.

The venue could be scaled for a smaller audience, but a larger venue was not on the cards because it would not be used frequently enough to make returns on investment.

Wellington Deputy Mayor Jill Day pointed out this would mean big acts like Ed Sheeran, who played 40,000-seat stadiums, would still not come to the region.

Wreda chief executive Lance Walker said  when a promoter has an act that can sell double the amount of tickets elsewhere, the region misses out.

If Wellingtonians wanted a new arena, then a public-private partnership was an option that should be considered, he said.

"Globally, the live entertainment industry is thriving and we know there is audience demand. While Auckland and Dunedin are seeing growing economic returns in the sector, Wellington is just maintaining our position."

The report shows competing Australian arenas, with a similar content profile cost between $52m and $550m.

Stuff has previously revealed plans for the indoor arena could be a decade away, after the city council, which had been leading the charge, signalled it did not intend to start construction until about 2025.

The council has earmarked $85 million for the venue in its 2018-28 draft Long-Term Plan. 

However, to get the project over the line, it will need promotional partners. The city would also need Greater Wellington Regional Council (GWRC) support for a regional rate - but GWRC had not included the arena in its Long-Term Plan.

After the meeting, Wellington Mayor Justin Lester said the positioning of the arena in the city council's 10-year plan, was only a "place holder".

"We could bring it forward with the stroke of a pen. If someone said they could build it within four years, we would happily do so, but what it needs is a strong business case to prove viability and we need to make sure we have the best location."

Lester said regional ratepayers were the same as those in the city and said if there was a strong regional mandate, the regional council would have to look at supporting it.

 - Stuff