Commercial building boom in Gisborne

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GISBORNE’S building industry is booming, with business owners spending on new buildings and renovating existing premises, but one commercial property owner fears issues with earthquake-prone buildings is the real reason behind the changing face of the CBD.

Over the past three years the value of new commercial building consents rose more than $1m, from just $712,000 for the year ended March 2014 to $2.16m for the 12 months ended March 2016 — with more than $1m of that in the past three months alone.

This year, the value of new commercial building consents was $200,000 up on last year’s figures, which jumped a total of $1.2m from 2014. Consents records also showed increasing amouns spent on existing premises.

For the year ended March 2016, the value of altered commercial consents rose about $1m for the preceding 12 months to $3.59m — a rise of about $1.9m since 2014.

Activate Tairawhiti chief executive Steve Breen said the rising value of consents over the past three years reflected the ongoing increased economic activity taking place in the region — “which is good news for all of us.”

“The value of consents is a good indicator of economic activity because they reflect business confidence to invest in response to increased demand and because of their multiplier effect.

Knock-on benefit to businesses“Direct employment is generated through carrying out the work needed and there is the knock-on benefit to the businesses employing people to supply the materials, transport them, and generate the consents and engineering/building plans required.”

However, property owner and Mccannics manager Robbie McCann said much of the spend around commercial consents was the result of building owners bringing buildings up to new earthquake standards.

Mr McCann said that also highlighted a worrying issue.

“I guess the reason why there are a lot of consents around is because there are a lot of buildings around that are deficient, which are earthquake-prone.

“You have some earthquake-prone buildings in the centre of town that people shouldn’t even be in.”

Mr McCann said he felt at least one building he was aware of was “putting the public at risk” because it was rated at less than half the new earthquake building standards.

“The reason you are seeing an uplift in commercial consents really, is because probably easily 70 to 80 percent of it is strengthening buildings.”

Not up to earthquake standardsMr McCann said he recently had to knock down one building to make way for a car park on Gladstone Road because the building was not up to earthquake standards.

“Although there are a few of the forestry companies or trucking companies building. Most of that is driven by forestry and as long as we don’t have a crash in the log price that is probably going to keep going.”

The Government says that in practice, an “earthquake-prone” building is often referred to as one that is less than 34 per cent of the new building standard.

The new Earthquake Bill, which passed its third reading in May will need all older (pre-1931) commercial buildings to be assessed within the next 15 to 35 years, relative to the seismic activity of the area (15 years for Gisborne).

There is a potential extension of 10 years for heritage buildings.