$65M civic heart call expected today

Today's the day Tauranga City Council makes the call to seek public suport for the proposal to build a new civic administration block to replace the existing mould infested and leaky buildings along Willow Street.

Because of the amounts involved, public approval is required for the required alterations the $65 million spend-up will have of the city's long term plan.


Council is looking at replacing the existing mould invested and leaky buildings on Willow Street. File photo.

The building costs are spread over five years, beginning this year with $1 million, $5.4 million in 2017, $19.2 million in 2018, $31.2 million in 2019 and $8.1 million in 2020.

Spending the money will impact rates. And the current limits will be exceeded for example in 2020 where the increase is 4.6 per cent, where the limit is 4.1 per cent and in 2021 when rates will increase 5.2 per cent and the limit is 4.2 per cent.

A note in the revised plan states no amendment is proposed to financial strategy limits, because the city's finaincial staff expect to be able to re-prioritise the captal propgramme and operating expenditure to avoid any actual breaches happening in the 2018/28 Long Term Plan.

Councillors are relying on the information in the consultation document - Creating Tauranga's Civic Heart - which the public is encouraged to read online. The document is also attached to today's agenda.

Because of the printing expense, only 500 hard copies will be produced. Feedback is also being encourged on the online submissions form.

As part of the build decision, councillors are also being asked to approve spending of feasiblility studies for the propsoal for the rest of the city block.

That includes $200,000 over the next two years to determine the best solution to provide a fit for purpose library.

Another $100,000 in 2016/17 to do a feasibility study on a museum, and explore the feasibility of a 1000-1200 seat performance venue on the Willow St site, spending $200,000 over two years 2017/18 and 2018/19 to reach a final position.

Meanwhile, the council will continue to seek a private developer for a hotel on the council owned site at 21-41 Durham St.

Two areas already approved in the 2015-25 long term plan are the streetscape and waterfront work, and a new parking building in the city centre.

The new Harringtron St parking building will have about 556 car parks, as well as the potential for a cycle hub or commercial tenancies. The revised cost is $20.19 million.

Work will be starting on the new parking building in 2015/17.

The financials in the revised long term plan and are based on a council build and own option for the civic administration building.

No decision has been made on whether the council should lease, or build and own the administration offices.

The assessment of rates and limit breaches in the event of leasing are based on an assumption that operating costs associated with leasing will be two per cent more expensive that the build and own costs, over time.

For the purposes of the proposed amendment to the long Term Plan 2015/25 the difference in rates is assessed at $650,000 per annum.

The additional debt and debt to revenue calculations included in the financials are based on the council build and own option.

If a lease option is chosen, council borrowings would be less by the amount of building construction but an additional lease liability would be recorded reflecting the value of the long term lease commitment.

9 comments

HA,HA,HA!

Posted on 15-06-2016 12:10 | By How about this view!

It's just head down and steamroller the plans through from now on!! When do we hear even one lone voice saying "Hang on a minute, maybe there's another option". Democracy...... Baa-humbug.


silly

Posted on 15-06-2016 12:10 | By rotovend

dont really need to own council offices we could rent them off someone and if they build offices they need to build four floors or so above the offices for accommodation. How about some nice inner-city apartments at least that would be an income stream to support the silly council offices apart from us


Guessing

Posted on 15-06-2016 13:16 | By Jitter

I don't know how TCC arrive at the figure for this project but I believe it will be closer to 3 times that figure ie $195 million. There are always massive cost over runs and price increases in projects of this size especially when TCC have anything to do with them. There may be "public consultation" but I am afraid going on previous examples absolutely no notice will be taken of submissions unless they agree with TCC decisions.


Spare me!

Posted on 15-06-2016 13:46 | By tonya

They want a mandate to spend $65M (++++) and of our money. and don't even print a information sheet "because of the printing cost"


Veneer of consultation

Posted on 15-06-2016 14:24 | By Chris

It's fairly obvious our councillors have already made up their minds here.


Public Approval

Posted on 15-06-2016 17:12 | By Taffy

Regarding the 2nd paragraph of this article that the spending of this amount requires public approval, Can someone please clarify as to how this works? If it is the case now is the time to put a stop to this crazy spending.Plus I can forsee those projected rate increases going through the roof,as it is they are horrendous.This needs a concentrated effort to stop it EG a petition I am quite willing to assist but I don,t have the know to set it up,all you moaners out there now is the time to put your money (so to speak ) where your mouth is!!


Overit

Posted on 15-06-2016 18:00 | By overit

No, no, NO. Those fools at TCC cant be trusted to carry out this huge endevour, on time, in budget.


65 mill!!! this has to stop

Posted on 15-06-2016 21:47 | By gottabekidding

are you guys crazy, 65 million!! so by 2021 my rates will go up by $400! the Main council building does not need to be in the cbd, no parking for 400 staff other than pay, must make a dent in their already healthy pay packets, why not sort 15th avenue out instead of this! move the building out of the cbd, plenty parking for staff, small customer service center in town is all that is needed. whats wrong with the perfectly good bay court btw, $500,000 for "feasibility studies"! just mental... I'm with you taffy, petition hopefully the power of tauranga facebook will spread one.


You have to be joking

Posted on 16-06-2016 09:23 | By The Sage

I think our Council has been taking lessons from Len Brown on how to overspend the budget. Where is the public consultation on this? Same place as it is for trying to impose a monopoly on rubbishy collection. TCC does not need to be in the CBD, source something slightly out of town hence alleviating costs and further parking woes. We have all seen how Trustpower being in the CBD has caused a raft of problems.


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