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Home / Business / Business Reports / Project Auckland

Project Auckland: Holistic approach to unlocking urban potential

NZ Herald
29 Oct, 2015 04:00 PM3 mins to read

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Bill Loutit says the trick is to understand early in the project which of these elements, or levers, apply.
Bill Loutit says the trick is to understand early in the project which of these elements, or levers, apply.

Bill Loutit says the trick is to understand early in the project which of these elements, or levers, apply.

Working together will achieve quicker results, says Bill Loutit.

The trick is to understand early in the project which of these elements, or levers, apply. Bill Loutit

Auckland is on the verge of progressing a number of major urban transformation and infrastructure projects.

However, unlocking the potential of these projects requires a holistic approach.

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The key is for Auckland Council, Council Controlled Organisations (CCOs), Government, community and business to work together. If this can be done results can be achieved quickly and without increasing council debt.

An understanding of the available levers is crucial

Every urban transformation or infrastructure project will involve most if not all of the elements shown in the diagram.

The trick is to understand early in the project which of these elements, or levers, apply and also what the relevant parties might need.

For example, only the council can acquire land or close a road. But doing so may be hugely beneficial to a private sector developer. So land acquisition or road closure could help provide for more development potential and, therefore, lead to further private investment.

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The multi-faceted nature of major projects readily provide for these types of scenarios which can in turn encourage private investment.

A new approach can have major benefits

We are on the cusp of making this happen because of the positive and collaborative approach the council and its CCOs are adopting.

Coupled with the creation of Panuku Development Auckland, the new CCO, Auckland has a huge opportunity to take projects forward with a combination of Council and private money. And the opportunities are numerous when projects are viewed in this way. The City Rail Link can be partially funded by development above train stations and the route itself. Communities can be transformed, as in Panmure and Glen Innes through the Tamaki Redevelopment Company.

The Tamaki Redevelopment Company is a great example of a partnership between national and local government. This will ultimately lead to a much more efficient use of under-utilised government social housing with significant private investment. Developments of this type can pay for their own infrastructure and provide affordable social housing.

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And, with greater local support, developments like Fletchers Living's community at Three Kings could be providing much needed housing for Auckland much sooner.

A shift in mindset is needed

To take advantage of these opportunities a shift in mindset is needed to map out projects and understand the levers that can be applied to achieve what Auckland needs.

There needs to be political support and co-operation at both the local and national level. Once this is made clear community and business will see the door is open and embrace the opportunities.

We are close but we need to work harder to make it happen.

- Bill Loutit is Head of Resources & Infrastructure, Simpson Grierson.
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