The Marine Parade redevelopment could cost ratepayers a further $1.3 million if Napier City Councillors vote on this option today.
At the council's city development committee meeting, to be held this afternoon, councillors will be presented with three options in regards to this project, the preferred option being to consult with the public and include the additional $1.3 million in the 2016/17 annual plan.
"This would be funded through an internal loan, with servicing costs of $87,670 per annum," the council's community development manager Antoinette Campbell reports in the agenda.
"This would equate to a 0.2 per cent rates increase in the first year."
Ms Campbell said the council undertook a long term plan amendment in 2012 to included the redevelopment's original funding of $5.7 million.
"A decision was made not to inflate this project over time and hold the original budget," she said.
"Now that detailed design has been completed, final cost estimates have identified a budget variance of $1,285,000, with the majority of the costs only relating to costs being higher than originally forecast rather than a significant movement in the scope of the project itself."
Ms Campbell said, since the wider Marine Parade development was proposed in 2012 and costs were estimated in 2013, the scope of the development, particularly stage two, has evolved to include higher specification elements and subsequently higher costs.
She said this, has resulted in the necessity to revise the original, approved budget.
"A detailed review of the costs for the project has been undertaken, with significant costs removed to bring the project down to a level that still ensures that the project delivers the proposed outcomes as originally consulted on with the public," she said.
The other two options presented to councillors are to keep the project to the original budget amount of $5.7 million or to not undertake the project and potentially revisit it in the future.