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Home / Bay of Plenty Times

Costs increase already for Tauranga’s $303.4m civic precinct redevelopment

Kiri Gillespie
By Kiri Gillespie
Assistant News Director and Multimedia Journalist·Bay of Plenty Times·
11 Dec, 2022 05:00 PM3 mins to read

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An artist's impression of what the completed $303.4m civic precinct will look like.

An artist's impression of what the completed $303.4m civic precinct will look like.

The projected cost of Tauranga’s $303.4 million civic centre redevelopment project has risen by $4.5 million before its final design has been finalised.

Tauranga City Council will meet today where a preliminary design and cost report on the Te Manawataki o Te Papa – the Heartbeat of Te Papa project will be presented.

The design and cost report noted that already the projected $270.4m for the project’s first phase (Site A) had increased by $4.5m to $274.95m.

The project’s second and third phases put the total cost of the project, for now, at $303.4m.

City commissioners will be asked to consider the staff recommendation to approve the extra cost.

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The report also noted the overall cost estimate would “be further refined” during a more detailed design phase of the programme.

On December 6 last year, the council adopted the Civic Precinct Masterplan - the document that underpins the entire redevelopment of the city’s civic centre, which will be called Te Manawataki o Te Papa. It is envisaged as a vibrant space that includes a library and community hub, civic whare (public meeting house), exhibition gallery, museum and landscaping.

Council director of civic developments Mike Naude said in a separate report to the council, included in the meeting’s agenda, that the preliminary design and cost report was one of the “key gateway stages built into the programme structure to ensure prudent council governance and oversight”.

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An area of land has become subject to a bid for co-ownership between Tauranga Council and Māori.
An area of land has become subject to a bid for co-ownership between Tauranga Council and Māori.

Naude sought the council’s commitment to progress detailed design plans in partnership with Willis Bond.

“Further enhanced costings have been undertaken to reflect the progression from concept to preliminary design. These costings have resulted in a number of changes to various components of the programme, with increases in some components being largely offset by decreases in other areas,” he said.

Naude said the driving factors behind the rise in cost were attributed to higher construction costs associated with moving to a mass timber building and 6 star green ratings, plus increased costs associated with the landscaping. This included structurally designed pou whenua and improved accessibility needed to address the significant slope of the civic precinct site.

Naude said it was important to note the cost estimates for Site A included a contingency $29.35m and escalation costs of $21.52m.

A separate budget of $32.9m for The Strand and waterfront central plaza works (Site C) has already been allocated. However, the costs for this part of the project were “yet to be refined”. This could result in savings that could offset the extra $4.5m that Site A has already incurred, Naude said.

A more detailed snapshot of the project’s costs is expected to be reported back to the council in July next year, before the council is expected to sign a Willis Bond Development Agreement.

The Te Manawataki o Te Papa refreshed civic precinct masterplan was prepared by Willis Bond in collaboration with mana whenua, including representatives from Ngai Tamarāwaho, Ngāti Tapu and Te Materāwaho, as represented by the Otamataha Trust. As part of the refresh, the masterplan was expanded to include the waterfront reserve, between Hamilton and Wharf Sts, linking the moana with the civic precinct via Masonic Park.

The total cost of the overall project is expected to be $303.4m, subject to having 50 per cent of the funding sourced through alternative means such as Government grants or the selling of council assets. This would leave ratepayers to fund the remaining $151.5m.

The meeting begins at 9.30am and is open to the public and available online.


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