Council investment or sale is to be considered to try and move the stalled Harbour City Marine Precinct project.
With little discussion councillors have agreed to delegate the councillors, the chief executive, staff, and Priority One to look at either selling the land or buying a big travel lift, 'to stimulate economic development within the sector”.
A 150 tonne travel lift operating on a large area of hard standing is considered a key piece of lead infrastructure for the project.
Development of the site former Baigents site on Mirrielees Road is seen as the required catalyst for the continued development of the marine sector in the city and sub region.
It was being marketed by Priority One, which last year reported it was in the final stages of negotiating with a single developer.
The project has since stalled, with the global recession taking most of the blame.
The council's firm hold on ownership of the land also being raised as factor.
Options to now be considered are for the council to either sell the land to the private sector, allowing a developer to raise development capital on the back of a secured land right. Council could also provide a long term lease to the same end.
The council could also sell land within or outside the site and invest the proceeds in marine sector infrastructure.
The council owns land on both sides of Mirrielees Road.
The western sites occupied by Allied concrete and the former Southern Ocean Marine building are also council owned.
The harbour central site proper is 3.7ha of land bounded by the water front and Cross Road.
A 150 tonne travel lift operating on a large area of hard standing is considered a key piece of lead infrastructure for the project.
It's seen by council as a replacement for the 600 tonne slipway it surrendered to the harbour bridge duplication.
The slip's removal also took an income stream out of the town that the Harbour Central Precinct project was intended to restore.
One option for city council investment is to buy either a new or used 150 tonne travel lift and lease it at a commercial rate to the private sector, enabling access to the facility without the initial capital outlay.
Such a travel lift is expected to cost between $1m and $3m to buy and make operational.
14 comments
Hold Priority One to account
Posted on 29-10-2011 09:28 | By Gee Really
How much has been spent so far and whose money was it? To me this whole thing looked like a big play for a ratepayer subsidy from day one. Give it to real business people to sort out. Council should sell it and get out of it. Question: If Council allows a developer to raise capital against the land and the developer fails, who loses the land?
No TCC purchase ...
Posted on 29-10-2011 11:05 | By Murray.Guy
The option of TCC ratepayers to purchase a travel lift has not been discussed. The land was purchased on the understanding that it would secure direct community access to the harbour edge in perpetuity, and as possible, marine associated services supported (not subsidized by ratepayers. The failure by Priority one to match actions with words had prompted TCC to consider partial land sale options.
ANOTHER SUCCESSFUL TCC PROJECT
Posted on 29-10-2011 14:07 | By ANNA KISSED
Like the saying "all dressed up and no where to go" seems to about cover it, last thing TCC should be doing is buying a travel lift, that will be like all things water based that TCC/TCAL are already involved in, they are in over their heads in every sense of the word.
a tricky situation
Posted on 29-10-2011 15:34 | By the_fourth_estate
Having watched the TCAL and HCC debacles unfolding in recent months you'd have to say that before anything like this gets under way someone had better well read audit NZ's findings on what happened in Hamilton around the V8 supercars fiasco. This could be a really good thing for the city BUT it would have to be met with sound planning due diligence and 120% watertight planning and accountability before so much as a pile is driven into the sand. Do that right and this could be a winner. Also, when is Audit NZ going to haul TCC over the rack regarding the Mount Hot Pools ?
TCC DEFINITION OF 'INVESTMENT'
Posted on 29-10-2011 21:57 | By MISS ADVENTURE
(1) To expend someone else's money without explanation, warning or reason to anyone else, (2) A commitment to pay for something with the excess dream and hope of something coming back later, time and again all that has ever come back are more bills each and every year!
ONE CERTAINTY OF IT ALL
Posted on 01-11-2011 11:21 | By SCOTT NUFFIN4U
If TCC is involved means any business person with a clue and / or business savy has long since dropped this idea years ago (before TCC got wind of it). HINT for TCC: that means that there is no profit in it, only bills, it does not pay, it does not work financially. That of course are the resons why TCC are jumping at it.
YEAH RIGHT 'INVESTMENT?
Posted on 02-11-2011 17:11 | By BUSH WACKER
TCC involvement is a sure thing guarantee of a disaster, it is all they know.
GEEEZZZZ WAYNE
Posted on 02-11-2011 22:44 | By CRUMPY
Whatya need one of them for, all ya need to do is put ya trailer on the right angle and give it a bit of a push. If ya lucky ya will hit a croc and knock it out so then there will be a bit a grub tonight.
TCAL IN MINATURE
Posted on 05-11-2011 14:09 | By SCOTT NUFFIN4U
This looks, smells, reeks, feels like another 'mini TCAL' debarcle unfolding. Yes 4th Estate the mess at TCAL has been amazing yet bewildering that it could actually be that bad, but worse resides tehre still to be revealed. If there was open and transparent governance then all and more would have been revealed years ago and of course TCC would be on a way different track now for the better.
MONEY OUT
Posted on 06-11-2011 00:37 | By SCARLET PIMPINEL
It is clear that TCC's idea of 'investment' actually means that there is physically something there, solid and can touch it. It actually has nothing to do with what a 'normal' person would think. Normally an investment means money comes back in and after a while that is enough to pay off the debt and some. TCC seems to believe that the money they receive after having spent the money is a 'profit' of course that is complete nonsense but does reflect the sheltered and 'cotton ball' type lifecycle that the average TCC staff member has. Just a pity that the 'cotton balls' were not 'moth balls' we might see a bit of improvement then!
NO MORE PICNIC BASKETS?
Posted on 06-11-2011 10:33 | By YOGI
They have given them all away, even borrowed everyone elses and given them away to.
THAT WOULD BE DEAD RIGHT
Posted on 06-11-2011 10:36 | By YOGI
I see in some places where they think that they made a profit that was more than the sales amount, I don't know how they created that picture. When you five picnic baskets in and three go out then you have two profit not eight. That is TCC fuzzy book keeping somehow.
SALE OF COUNCIL CBD
Posted on 06-11-2011 20:30 | By THOMAS BROWN
That actually would be a better idea, to get Council out of the CBD and leave it to business interests to get it done right. Council lacks any business acumen that would assist Council to get it right, the best thing then is that Council just leave anything that looks like a business or investment to the private sector to fund and manage, that will then assure us all that it is done properly and is not a financial burden to our ratepayers.
GET IT RIGHT?
Posted on 07-11-2011 13:45 | By YOGI
The only known answer here by TCC is to throw more money at it and call it an investment. If they have thrown more money at it that the bills coming in then that is a 'profit'.
Leave a Comment
You must be logged in to make a comment.