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Home / Business / Business Reports / Infrastructure report

Infrastructure report: City Rail Link buy-up over half complete

NZ Herald
18 Aug, 2014 05:00 PM4 mins to read

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File photo / NZ Herald

File photo / NZ Herald

Auckland Transport has spent $55 million on 38 properties it has bought for its $2.4 billion City Rail Link, forging ahead to secure the route in the first phase of the ambitious scheme.

Carol Greensmith, Auckland Transport's City Rail Link communications manager, says that is more than 50 per cent of the total needed.

"We're ahead of schedule in terms of our purchases and bought a significant proportion of what's needed in the Eden Terrace area.

"Negotiations are going on for the Life Church," she says of one of the biggest and most complex purchases for the property on Mt Eden Rd.

No new land is needed around the Mt Eden Station. "We're upgrading that within the same footprint so we don't need to buy any more land there," she said.

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In the first week of August, Greensmith gave an update of the purchases, saying three new property purchases had been settled in the past few weeks.

By May, the council controlled organisation had bought 35 of the 73 surface properties it then planned to buy, although an announcement was made on August 1 that the scheme had changed and no Newton underground station would be built so the number of properties to buy had been cut by six, down to 67.

Mayor Len Brown says that change will reduce costs by 20 per cent, from $2.86 billion to $2.4 billion.

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"A significant part of that cost reduction is an Auckland Transport decision to redevelop the existing Mt Eden Station and connect it to the CRL rather than build a new underground station at Newton.

"That design change will save more than $150 million, improve the reliability and journey time of train services, minimise construction disruption and reduce property purchase requirements. The other significant saving is a decision that additional electric trains will not be required as part of the core CRL project, saving more than $330 million."

As of June, Auckland Transport had bought about $45 million of inner-city property on the designated CRL route. About 42 property owners were in "active negotiation" with Auckland Transport.

The organisation is now also buying about 200 subterranean properties: because New Zealand property law stipulates property ownership goes all the way to the centre of the earth, purchases are necessary for the route to be secured and the project to go ahead. New Zealand law contrasts with that of some European countries where ownership extends only metres below ground.

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Greensmith says the lines will run under private properties and anywhere the tunnels would be dug below, purchases had to be made by Auckland Transport.

But often only a portion of any one property might be needed.

Valuers calculate the amount needed to secure these purchases, she says.

"Acquisitions will be based on the compensation provisions of the Public Works Act," says Auckland Transport. "Compensation is based on before and after assessment. Compensation generally relates to the degree to which the subterranean purchase impacts on surface use."

Owners' reasonable valuation and legal costs will be reimbursed.

The subterranean properties involve about 88 negotiations on about 200 titles or pieces of land.

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Greensmith says Auckland Transport might sell some of the properties it has bought but no longer needed as a result of the Newton station being removed from the plans.

"The question is now if we've bought any we don't need around Newton. We might dispose of one or two," she said. Subterranean purchases were now due to start next year.

CRL is now at design phase on its most northern or waterfront sections.

"We went out for expressions of interest for a design tender for the Britomart area, out under lower Queen St, lower Albert St and Customs St. They close on August 6," Greensmith said.

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