The Bay of Plenty Regional Council handed over a cheque for $1.5 million to Tauranga City Council on Thursday as the first part of its $5m contribution to Tauranga's new Marine Precinct.
The project is the first to receive a payment grant from the council's $42.5m Regional Infrastructure Fund, set up in 2013.
"This project is a great example of collaboration between councils and we are glad to see good progress made on the construction of the precinct," said regional council chairman Doug Leeder.
The precinct was the first of four projects the fund has agreed to provide grants, to have met the required terms and conditions by having advanced to the construction phase, he said.
The first phase of the precinct will cost $11.4m, with Tauranga City Council raising $6.4m by selling lots at the site to marine industry boatbuilding, refit and painting businesses.
Six lots have been sold and a seventh is under negotiation. The precinct will be managed by Tauranga City Council under the Vessel Works brand.
Construction on the precinct site started in November last year. Since then, civil contractors HEB Construction have completed demolition works, and upgraded the stormwater system servicing the new lots.
They have also made good progress in preparing the precast concrete elements that will be used to build the hardstand, the new wharf and the vessel hoist loading bay. A new road is also being constructed on the site to provide access to the marine companies that have secured lots at the precinct.
Mr Leeder presented the cheque to Tauranga City Council chief financial officer Paul Davidson at the opening of the two-day national NZ Marine Industry Conference.
Marine industry executives said they chose Tauranga as the host destination for their conference due to its significance for the national marine industry, which has increased with the commitment to build the precinct. The conference has drawn more than 100 marine industry professionals to the city.
The Regional Infrastructure Fund was set up to support and promote economic development in the Bay of Plenty. The Marine Precinct is seen as a key strategic development for Tauranga City Council and the regional council. The development of the precinct is expected to create significant opportunities for long-term economic development, business and job creation, and become a hub for the regional marine sector.
"By supporting the local marine industry in this way, we can keep and grow jobs here, and attract more talent and investment to the Bay of Plenty," said Mr Leeder.
"This is a great example of collaboration between councils and we are glad to see good progress made on the construction of the precinct."
When fully developed, the precinct was expected to contribute 130 to 190 additional jobs and $24m to $27m in revenues by 2022/2023, he said.
The precinct's vessel hoist - the largest in New Zealand at 350 tonnes - is being built by Cimolai Technology in Italy, and is expected to be shipped out in June-July, said Vessel Works project director Phil Wardale.
It will be assembled at the precinct once the hardstand is ready.
"I expect we will lift our first vessel before the end of the year," said Mr Wardale.
Mayor Greg Brownless was pleased to see good headway on the project.
"It's fantastic to see the product of our partnership with Bay of Plenty Regional Council taking shape before our eyes," he said.
"Collaboration between councils and with the private sector is really important to enable positive outcomes across the board.
"I am looking forward to seeing the hardstand built, the vessel hoist in operation and the precinct's marine businesses bringing commercial activity to the city and the region."
Regional Infrastructure Fund - total $42.5m
- Marine Precinct for Tauranga City ($5m)
- The Opotiki Harbour Transformation ($20m)
- A shared tertiary campus in Tauranga ($15m)
- An Innovation Centre at Scion's Innovation Park in Rotorua ($2.5m)