In late July 2012, councillors were advised verbally of the acquisition and the decision was then publicly announced. This was formally reported to an open meeting of the strategy and finance committee the next month, with the report clearly referring to the need to budget $4.2 million for repairs to the stone cladding.
The council was aware that the cladding would need ongoing maintenance over the life of the building.
It was only when the council had full ownership of the building and had begun fit-out work that the full extent of the need for cladding remedial work became clear.
While the cost of the remedial work will not be insignificant, it needs to be viewed in context.
While the cost of the remedial work will not be insignificant, it needs to be viewed in context. When the council bought the building in 2012 it was estimated that this move would save ratepayers $102 million in the first 20 years, compared to previous leased accommodation.
The move has secured staff productivity gains by reducing the dead time of staff moving between locations.
In a sign of the strong commercial interest in our building, we have received numerous unsolicited offers to buy the building at prices in the region of $200 million-$250 million.
READ MORE: Repairs not revealed to Auckland Councillors before purchase
The doubling of the value of the building provides future options for the council to release the capital at a later stage.
Purchasing 135 Albert St remains a sound decision for the council to have taken. It followed a strong business case and a robust process.
While unforeseen costs will sometimes occur, they should always be seen in the wider context, which in this case remains good for the council and good for ratepayers.
Debate on this article is now closed.
Penny Webster is chairwoman of Auckland Council's finance and performance committee.