Quake strengthening to cost $250m in CBD

Earthquake standards in Auckland's commercial building sector will be tightened under a law change estimated to cost the city's commercial landlords at least $250 million.

Property market analyst Kieran Trass said changes to the Building Act from May 31 would mean the future of many Auckland buildings would be reviewed.

"Everyone thinks this is a Wellington problem, but they've missed the point," he said.

"The bill for earthquake strengthening could cost more than $250 million in Auckland's CBD."

Under changes to the act, the Auckland City Council must adopt a policy on earthquake-prone buildings by May 31.

It has commissioned a draft report from the Institute of Geological and Nuclear Sciences and proposed changes which it will release next month.

The changes will establish a new regime for at-risk buildings and harsh penalties for offenders.

Although deemed a low seismic activity zone, the CBD has dozens of unreinforced masonry and wood low- and high-rise buildings which will come under scrutiny.

A spokeswoman for Auckland City Environments said if policies proposed in a report prepared by council officials were enacted, the regime would remain relatively light-handed.

"Auckland City has adopted a commonsense approach to setting both the policy and implementing it," she said.

"For instance, in most cases earthquake upgrades will only be required at the time the building owner decides to do some building work and applies for a building consent."

But not always. A list of dangerous earthquake-prone buildings will be developed and the danger will be recorded on the property's land information memorandum. Notices will be issued to owners of very dangerous buildings, even when no building consent has been applied for, the report said. Tenants might be forced to evacuate and to carry out demands issued for urgent strengthening work.

The law change did not only demand that the council examined its earthquake risk policy, but also charged it to establish a new regime for dangerous or insanitary buildings.

Proposals are that building owners could challenge council notices by applying for a Department of Building and Housing determination.

Bob de Leur, Auckland City's principal building officer, said not requiring owners to upgrade buildings until they applied for a building consent to do structural work would minimise their costs.

The council's report on the issue noted that during 150 years, Auckland's CBD had been mainly built in wood, unreinforced masonry, framed masonry and brick veneer - all weaker and potentially more at risk from earthquakes than the steel and concrete buildings put up in more recent decades.

Heritage buildings, in particular, need earthquake strengthening to levels that exceed those imposed by the Building Act, the report said.

SHAKE-UP

The Auckland City Council's review:

* Will identify earthquake-prone buildings.

* Will compile a list of at-risk buildings.

* Will issue compliance notices demanding strengthening (dangerous building notices will go out for urgent work).

* Will allow owners to appeal against notices to the Department of Building and Housing.