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Home / Business

America's Cup and APEC will cost up to $277m

Bernard Orsman
By Bernard Orsman
Auckland Reporter·NZ Herald·
21 Nov, 2017 06:18 AM5 mins to read

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Archive: Auckland Mayor Phil Goff on America's Cup base options. November 2017

The cost of hosting the America's Cup and Apec conference in Auckland during 2021 is up to $277 million, says a report released today.

The America's Cup bases will cost between $147m and $187m and a further $90m of unbudgeted money is needed for other downtown projects to ensure the Cup and Apec conference are delivered to a world class standard.

The new costings are contained in a report for Auckland councillors to choose between three options on where to locate the America's Cup bases at a governing body meeting on Thursday.

The $277m figure does not include event costs for the Cup, which will be set out in a separate Host City Agreement negotiated with Team New Zealand.

The report recommends council express a preference for dispersing the bases across three wharves, subject to agreement with the Government and Team New Zealand on location, infrastructure and funding issues. The plan is to wrap up these matters for a final decision at a governing body meeting on December 14.

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Mayor Phil Goff supports the dispersed base option.

The other two options are Team New Zealand's preference to centralise the bases on a 220m extension to Halsey Wharf and a late push by community groups to disperse them around Wynyard Wharf.

Councillors have more than 200 pages of material to digest before expressing a preference on plans for the cup base - and the future of the waterfront - which are proving divisive and taking the shine off a strong desire by all the parties to hold the 36th America's Cup in Auckland.

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The report contains comprehensive details, which have not been revealed before, and links the America's Cup to the Asia-Pacific Economic Cooperation (Apec) conference that will bring the President of the United States and other world leaders to Auckland in 2021.

The report's authors say there is critical work that needs to occur downtown for the Cup and Apec, including repairs to the Quay St seawall, upgrading Quay St and bus, ferry terminal and public open space improvements.

These works will cost about $220m, of which $130m is currently funded. That leaves $90m of extra funding to be found and included in the council's new 10-year budget.

The council has no spare cash, faces a multi-billion dollar hole on transport and housing infrastructure. Facilities like the Auckland Art Gallery, which is considering closing its doors one or two days a week, are crying out for more money.

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Goff believes the Government, which will benefit enormously from projections of a $1b Cup bonanza, should meet a lot of the costs. Officials have talked up private sector contributing to the cup infrastructure, but privately politicians say this is a fantasy.

The base row took a new twist today with revelations of a 50m wharf extension as part of Goff's preference across Halsey, Hobson and Wynyard wharves.

Stop Stealing Our Harbour spokesman Michael Goldwater said this was the first he knew about a 50m extension.

"We are against any extension into the harbour.

"As Aucklanders don't want their harbour to be perpetually whittled away, the Cup infrastructure must be accommodated using existing assets and does not require the continued erosion of the Waitemata Harbour," Goldwater said.

The council report shows the "Goff" option would involve nearly 2ha of harbour extensions, including 1ha on Halsey Wharf, 0.5ha on Hobson Wharf and 0.3ha on Wynyard Wharf.

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This option and the Wynyard Wharf dispersed option would lead to the SeaLink ferry terminal and Sea Plane services being relocated.

The Halsey Wharf option would involve 3.9ha of extension into the water space between Princes and Wynyard wharves. This is made up of about 3.6ha on Halsey Wharf and 0.36ha on Hobson Wharf.

No water extension figures are given on the Wynyard Wharf option, but it would involve about 0.3ha on the eastern side of Wynyard Wharf and is the least most disruptive on the harbour, according to Urban Auckland, which is promoting this option.

The Halsey Wharf extension and dispersed wharf option require negotiations with commercial tenants and private landowners, estimated to cost $18m for either option. These costs have been included in the $147m and $187m cost for these options.

The report said the Halsey Wharf extension best delivers for the event, for public access, having activities on one location and is the one supported by Team New Zealand.

In particular, it provides the sheltered water space to team bases required for launching the boats. It also provides additional berthage for supporting vessels and super yachts - which are a good source of revenue, the report said.

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It does, however, have the tightest timeframe with an 18-month build and faces the risk of public opposition due the size and scale of the wharf infrastructure.

The report said the dispersed Halsey option goes some way to deliver on event requirements for public access, has an uneven distribution of bases and higher running costs for the village.

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