Tauranga City Council is looking to sell off ‘surplus’ properties to help fund the $306m civic precinct redevelopment, which aims to revitalise the city's heart.
Thirteen properties owned by the council could be classified as surplus under the council’s Asset Realisation Reserve.
The thirteen properties are a mix of residential, commercial, and vacant land, some of which were bought for stormwater purposes.
The reserve was established in July 2023 for managing the disposal of assets the council no longer needed.
The properties were classified as surplus at a council meeting on Monday, subject to legal obligations and consultation with mana whenua.
Their estimated values were kept confidential as it could "disadvantage negotiations”.
Commissioner Bill Walsey questioned why a public carpark at 134 Greerton Road was being considered as surplus.
“It's a pretty popular car park and I'm not sure why as council we would be intending to sell that.”
The free carpark supported the Greerton Shopping area and he wasn’t convinced the council should “pull the trigger” on selling that property, he said.
Council commercial property manager Simon Collet said the classification was just a step in the process and there would be further requirements to go through before the council considered it for sale.
At Wasley’s request the property was removed from the surplus category and classified as “strategic”, so it would be subject to further investigation before any sale occurred.
Collet said the potential sale of the surplus assets could happen over the next two years.
Mana whenua would have the right of first refusal if the properties were suitable for sale on the open market.
If mana whenua declined the offer the properties could be sold on the open market.
“This is just a step to working towards that support for Te Manawataki o Te Papa that these properties are really critical for,” said Collet.
Te Manawataki o Te Papa, meaning the heartbeat of Te Papa, will include a library and community hub, civic whare (public meeting house), exhibition gallery and museum.
The council initially proposed selling its two CBD parking buildings as part of the asset realisation reserve and consulted on it through the 2024-34 long term plan process.
Instead of selling the buildings the council decided to use surplus revenue to fund a loan to go towards the civic precinct.
An artist's impression of Te Manawataki o Te Papa's museum and exhibition centre. Photo: Tauranga City Council.
Ratepayers would fund $151.5m of the $306m precinct Te Manawataki o Te Papa, while the rest would come from government funding and grants, local and community grants, development contributions and the asset realisation reserve.
The council must first obtain external funding then use the asset realisation reserve to top up the balance if needed as a ‘second priority’, said the Te Manawataki o Te Papa Financial Strategy report.
The council had an estimated $25.1m in government funding, $21m for a partnership with TECT, $4.6m from local grants and $700,000 in development contributions, as of May 2024.
This left a balance of $103m. The report showed the estimated value of the asset realisation reserve at $108m.
The ratepayer funding would come from an Infrastructure Funding and Financing (IFF) levy.
The levy would be paid via the rates bill over 30 years and start from July 2025.
For the 2025/2026 rates year the median residential ratepayer will pay up to $128 for the levy. The median commercial ratepayer will pay up to $464 for the levy.
Construction on the precinct has begun and is expected to be completed in 2028.
Council properties that could be sold
- 59C Esmeralda Street, Welcome Bay
- 53D Esmeralda Street, Welcome Bay
- 2014L Kairua Road, Welcome Bay
- 15 Herald Way, Welcome Bay
- 32 Keilor Road, Otūmoetai
- 140 Grange Road, Otūmoetai
- 96B Sherwood, Bellevue
- 31,33,35 Glasgow Street, Tauranga
- 49 Second Avenue, Tauranga
- 34-136 Greerton Road, Tauranga
- 35A and 35B Third Avenue
- 1-3 43 Third Avenue, Tauranga
- 65-73 Cross Road, Tauranga
- 85 Cross Road, Tauranga.
LDR is local body journalism co-funded by RNZ and NZ On Air.
15 comments
Greerton Carpark
Posted on 22-05-2024 18:23 | By Cynical Me
We can tell them why the TCC idiots want to sell it.
The carpark was made into a pay in the box scheme several years back. The whole time it was like that it was boycotted by everyone. Not a single car parked in it. It was a point well made to the boffins at TCC who eventually realized that their attempt to collect money was a failure and they removed the boxes. Now this would be their revenge. There has been a bad attitude downtown towards Greerton for years and years. We have never had any representative on the council that was of any value. Having lived and run businesses in Greerton for the best part of 40 years I have yet to have a councillor that represented our area and have never had one come to visit our workplaces ever. Until today.
Tolley's Folly
Posted on 23-05-2024 08:39 | By Equality
The commissioners/council have no right to sell the 'family Jewels' to build the white elephant called the 'Civic Centre'. Those 'assets' belong to the people of Tauranga.
Council did not listened to ratepayers when we said we do NOT WANT the "Te Manawataki o Te Papa, meaning the heartbeat of Te Papa, will include a library and community hub, civic whare (public meeting house), exhibition gallery and museum". The 'heartbeat' of Tauranga - yeah right, can't they see the city is dead - there is no 'body' left to need a heart!
Redesign the the 'elephant' - make plans and decisions that are based on what you have and not what YOU would like. With council elections coming up lets hope we get an intelligent bunch who will do this, and concentrate on the important things we NEED! -
So we cant and never could afford this
Posted on 23-05-2024 09:01 | By an_alias
How about we hold the un-elected 4 accountable for this fiasco which NEVER should have started. You say "re-vitalize" the CBD, what a bad joke, the 4 have caused the decline and only fools would run the show as they have into a recession environment.
The sooner we have elected councilors who can push back against the un-elected local servants the better.
Its time for the 4 "YES" anything you want unelected to STOP and EXIT the building.
White Elephant
Posted on 23-05-2024 09:14 | By Fernhill22
This Civic Precinct is going to set ratepayers back $300m for something that TCC can't afford. They are desperately trying to push on this on us, but this project is a huge White Elephant in the room that the commissioners are pushing forward with whatever it costs. We really need a complete independent review of this project to see what the Return on Income is for the $300m being spent. Things like a library & a museum don't ever make money, they cost ratepayers money. It's becoming more and more apparent, that TCC can't afford this project & are now looking at a fire sale to raise funds.
Hmmm
Posted on 23-05-2024 09:57 | By Let's get real
So we're starting to see the outcome for awarding themselves an Ivory tower of eye-watering cost. The egotistical attitude on display is disgraceful, particularly when cloaking themselves in levels of unwarranted grandeur without any consultation or concerns for the expense that will be picked up by the community.
One only needs to visit Aotea Square in Auckland, to see the future. Architecturally designed to be the centrepiece of a modern city centre, taken over by vagrants and other undesirables, to become a hellebore at certain times of the day and night.
Millions could be saved by reducing the ego and scraping the unwarranted lavishness of the design and some of it's components.
Generations will pay for it.
Posted on 23-05-2024 12:18 | By morepork
How can it be that $300 million (we know it will more likely be $500 million) of OUR money, can be spent on something we were never asked about, (no referendum), already voted against the museum component of it, but that is ignored, when there are other much more pressing things we SHOULD be spending money on? And now we find the outgoing Commissioners are looking to pick up some cash for it by spending OUR assets, again, without any reference to the community. If it weren't actually happening, it would be difficult to believe. ALL action towards the planned CBD project should be immediately stopped until we have an elected Council and the legal situation regarding whether we can cancel/amend Commission vanity projects can be assessed.
Commercial?
Posted on 23-05-2024 13:51 | By QuietObserver
Why does TCC have a commercial property manager? Pretty sure Council’s aren’t supposed to lead commercial activities…..
When will u learn
Posted on 23-05-2024 17:31 | By kumera
Bravo to all the others that has Why do you not run a pole for all the residents in the whole of Tauranga to have a choose between this civic precinct or get all of the road congestion issues fixed through out this city for once and for all. I am very confident the votes would be well above 95% for the road congestion issues to be fixed for once and for all over this total waste of money. I can tell you that I for one have no interest for this. A MUSEUM, PLEASE! I don't believe it would make any difference at all to bringing more people into all the other businesses in the city centre either. WHEN WILL THIS COUNCIL LISTEN TO THE PEOPLE THAT LIVE AND DRIVE AROUND THIS CITY DAY IN AND DAY OUT!
Just wondering
Posted on 23-05-2024 17:46 | By aratonga
Is there ever a comment in favour of the so-called "heartbeat" or do you only publish the antis? Personally, I too think it to be a great waste of money and an unwanted imposition on the future. The artist's impressions always show crowds of imaginary people hanging around.
How unrealistic, but apparently persuasive of the "unloved 4". The realistic use for the site is as the central bus station. The City already has enough of the facilities planned, except for a museum. That is needed but it should be a separate building not just rooms in something else. Also, it should be part of the historic precinct.
Admission of Guilt
Posted on 23-05-2024 19:10 | By CliftonGuy
This is simply an admission by the Commissioners that they have overextended the TCC with fancy ambitions. Anybody on a budget knows that you cannot spend money that you do not have.
The Master
Posted on 23-05-2024 19:15 | By Ian Stevenson
The $306m was to be the cost, but no one will provide a quote as the land is apparently subject to liquefaction, so meaning anything constructed there will be on an open tab. So all TCC costings are meaningless, that will be another guaranteed mega budget blowout...
The prior buildings were fine of course, that is why TC demolished them, wanting shiny n new.... I guess.
The Master
Posted on 23-05-2024 19:19 | By Ian Stevenson
Ages ago TCC Fab-4 approved the consultants "scheming" here. That scam-a-thin included a huge % fee for themselves, out dated costs, no quotes, no idea.... sounds like the usual TCC project where is said to be "planned" and well managed, yeah right TUI-ADVERT again, repeat season.
The afternoon following approval of $306m (Govt pays half somehow?) the consultant then advised of $60+m of rash-out there nice to haves above the entire thing, NICE TO HAVE, But actually nicer not to have.
The Master
Posted on 23-05-2024 19:23 | By Ian Stevenson
In reality...
1 $306m cost is miles off and out of date
2 Add $50+m for over the top nice to haves...
3 Add $100m because its TCC messing it up
4 Add $100m as the above just isn't enough, as TCC will mess it up even more
5 Add yet another $100m for glossily, nice to haves, fit out, shiny things and more
6 Add $130m for cost increases, no planning, mismanagement from years ago to after the dust has settled...
7 Less $306m @ 50% Govt contribution (at best, likely less) = -$153m
Cost, borrowings to TCC Ratepayers, say $636m. Don't see any change left out of that.
Result, Tauranga CBD more dead than ever before.
The Master
Posted on 23-05-2024 19:28 | By Ian Stevenson
There will be a cost blow out, just look at Cameron Road mess, $45m ended up at over $100m, what is there to see/get for that $$?
The annual losses are the worst aspect of this... likely: -
- Interest $630m @ 6% = $36m annually
- Operating loss, usually 10-15% collected at the door at best, say $5.5m/pa (looks to high?), costs say $31m, annual loss over all say $25.5m = that adds to rates
- Depreciation, 750m @ say 3% = $22.5m
Total added to rates $83.5m each and every year.
Stop it!
Posted on 24-05-2024 12:44 | By morepork
Anyone who lives here believes this project will have an alarming cost overrun that will be met by Ratepayers, mostly.
1. No-one asked us if we wanted it.
2. We already voted against a museum at this time. (Not "forever" but let's get some priorities organized first...)
3. It is a matter of opinion whether this project will actually "revitalize" the CBD. (Getting that to happen is much more complex than simply slapping a vanity project over it.)
4. There is a small clique of developers who are pushing for this to go ahead. They are backed by the Commission, along the exact lines of Tikanga Governance as laid down by Tolley's corrupt mentor, Mahuta. It's demeaning to Maori and to the rest of us.
As noted in my previous post, this project should be stopped until it can be Democratically reviewed. Why won't it be?
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