Tauranga mayor Tenby Powell is hopeful some of the city's most urgent infrastructure projects will receive Government funding to continue and create jobs. Photo / File
Thousands of jobs and millions of dollars hinge on a bold submission for Government help to progress urgent infrastructure projects in Tauranga.
The projects could benefit the city's economy for at least the next 30 years.
Earlier this week Tauranga City Council applied for the Government's Crown Infrastructure Partners (CIP) Economic Stimulus Process to help progress infrastructure plans.
The Bay of Plenty Times can today reveal more details about the application.
A total of 24 city projects totalling more than $1 billionwere put forward for funding consideration.
The projects, categorised into a three-tier priority list for consideration, are focused on maintaining a viable economy and creating capacity for growth plus housing and jobs. They include the Waiari Water Supply Scheme ($117m) and intensification of the Te Papa peninsula ($84.3m).
The submission has backing from some of the Bay of Plenty's largest and most powerful organisations, including Zespri and the Port of Tauranga, and also prompted a rare joint media release from all Bay of Plenty mayors showing their unequivocal support for such a request of the Government.
The release, signed by all eight council leaders, stated Covid-19 had dealt a blow to the region which could not be underemphasised and would be felt for a long time. It said a lot would need to be done to help communities get back on their feet.
The Mayoral Forum, what the group of eight council leaders referred to themselves as, stated the region would need many millions of dollars in infrastructure investment and much of this was existing work that could be brought forward. The Western Bay of Plenty is seeking about $120m and Rotorua Lakes Council has asked for about $210m for projects.
Tauranga mayor Tenby Powell described the application as a "massive opportunity" which could benefit the city for the next three decades.
Because of the city's debt situation, which is near the debt to revenue ceiling of 250 per cent, combined with reduced revenue due to Covid-19 restrictions, the funding was "critical" to the local economy.
Without it, the city's 2020/21 $244m planned capital programme would, in the best-case scenario, need to be halved or, in a worst-case scenario, be virtually non-existent.
The CIP funding would significantly alleviate this, Powell said.
"This is genuinely transformational and as a number of councillors observed ... it does offer a silver lining to a very bad situation."
Powell said while he did not think the council would get everything it asked for, as other councils also had pressing needs, he was hopeful of gaining support for the most urgent and beneficial projects.
"Because they are genuinely transformational, will create or facilitate sustainable employment and are 'shovel-ready'."
Among the projects were transport and water plans which would create 3000 new jobs.
Being able to progress such projects would get people back working and money flowing through the local economy again. While it might not happen immediately, the economic benefits would increase over time, Powell said.
The council decision to submit the application was supported by all elected members except for councillor Heidi Hughes, who said she believed the council was running a "massive risk" by supporting developments of growth in the fringes of the city.
"It can put us into more traffic chaos."
Powell said he understood Hughes' perspective but it needed to be recognised many of the priority projects had a significant focus on multi-modal shift.
• Covid19.govt.nz: The Government's official Covid-19 advisory website
"We also have to consider that we have a housing crisis to deal with. The city needs more houses, as well as housing options that will encourage more affordable options within our existing footprint hence our major focus on the intensification of the Te Papa (Cameron Rd) peninsular.
"We have an opportunity now to unite as a community and I'm determined to do everything I can to help make that happen."
The construction sector alone represents 12 per cent of total employment in Tauranga.
Zespri chief grower and alliances officer David Courtney said it believed investment in local infrastructure projects, such as improvements to local transport corridors, would increase the safety of local roads, help support the future growth of the Port of Tauranga "and ultimately help grow the export sector and the contributions we make to our local communities".
"Once under way, these investments will improve local road safety and further enhance what is already one of New Zealand's most productive regions."
Port of Tauranga chief executive Mark Cairns said he strongly advocated in favour of the investment proposals in the submission.
"These projects are well-researched and much-needed, and can be quickly implemented given adequate funding," he said.
"Port of Tauranga is by far New Zealand's largest port (handling 43 per cent of New Zealand's exports) and will play a crucial role in the country's economic recovery. There are many businesses in the Bay of Plenty and beyond that rely on an efficient and well-connected port, including those in the agricultural and horticultural industries."
The port has long lobbied for investment in the Hewletts Rd, Totara St, and Hull Rd corridor to improve capacity and safety.
Priority One chief executive Nigel Tutt also backed the prioritising of strong proposals for funding.
"Targeting towards areas of strategic significance such as Tauriko, Te Tumu, Rangiuru, city intensification and roading around the Port will hopefully ensure that the government investment goes into areas that enable job creation and private investment."
The CIP has said it might seek additional clarification on project information and if so, will seek this extra information no later than 5pm on April 27. It remains unclear when the Government's decision will be announced.
The fallout from Covid-19 has presented the Western Bay of Plenty with a unique opportunity to bring forward infrastructure projects that were not expected to be started for years, the district's mayor says.
This week, the Western Bay of Plenty District Council applied for about $120m in Government funding for projects including the Rangiuru Business Park, Katikati Bypass and linking cycleways from Waihi through to Whakatane.
Western Bay mayor Garry Webber said projects such as the "critical" Rangiuru Business Park, which was ready to go ahead, could create many jobs for those people unable to work because of the pandemic.
"Covid-19 has created a unique set of circumstances where local government and central government can get work under way so those displaced people can earn an income," Webber said.
Projects such as the cycleway had been noted in the council's long-term planning but "they were going to be some years away before we had the funding."
Now, infrastructure funding made possible through the Government's Crown Infrastructure Partners (CIP) Economic Stimulus Process could make such projects a reality far sooner than originally anticipated.
"It's like after the second World War where we went through 'think big' projects to kick start the economy," Webber said.
"This is an intergenerational opportunity. It's a courageous Government to say 'we will push our debt boundaries'."
The urban growth projects aimed at creating communities and housing - $674.6m total value
Priority one
- Western Corridor, including Tauriko Business Estate and Urban Growth Area - $78.5m.
- Te Papa Spatial Plan – Early Transport Interventions to enable intensification in Te Papa
Peninsula - $84.3m
- Tauranga Eastern Corridor Growth - Te Tumu Urban Growth Area and Wairakei Town Centre Infrastructure - $117.34m
- Western Stormwater Growth Infrastructure - $17.9m
- Waiari Water Supply Scheme - $117m
- Wastewater Te Maunga Outfall Pipeline – Landward Upgrade - $25m
- Wastewater Growth Infrastructure – Te Maunga Bioreactor - $31.86m
- Memorial Park Recreation and Leisure Hub, Aquatics and indoor facility - $75m
Priority two
- Memorial Park Recreation and Leisure Hub, Visitor leisure facilities - $23.7m
- Western Corridor – Community Facilities - $49m
Priority three
- Residential Development Opportunity - $55m
The employing our people projects - $396.89m total value
Priority one
- Stormwater Super package - $24.6m
- Mt Maunganui & Arataki Multi Modal and Transport Improvements - $19.59m
- Long Term Plan Renewals Programme - $31.9m
- Totara Street Operational and Safety Improvement Projects - $10.9m
- Wastewater Upgrades - $22.8m
Priority two
- City Footpath Renewal - $24.6m
- Tauranga CBD Placemaking - $47m
- Safety and Speed Management Package - $18.5m
- City Wide Open Spaces Programme - $16.8m
- Connected City - Digital - $80m
- Waste Package - $34.6m
Priority three
- Te Papa Community Facilities Projects - $13m
- Community Events Centre (Bay Venues Limited) - $26.4m
- Blake Park Sporting Precinct (Bay Venues Limited) - $26.2m
Source: Tauranga City Council
Applications will be assessed on the following criteria:
• Construction readiness: The extent to which the project is construction-ready now or within a realistic 6 - 12 months;
• Public or regional benefit: The project must be of an infrastructure nature, either horizontal or vertical, and must demonstrate public or regional benefit infrastructure;
• Size and material employment benefits;
• Overall risks and benefits of the project.
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