An image of the planned Oruku development on Whangārei's Riverside Dr that Whangārei District Council has pulled funding for from its Long Term Plan after certain conditions were not met.
An image of the planned Oruku development on Whangārei's Riverside Dr that Whangārei District Council has pulled funding for from its Long Term Plan after certain conditions were not met.
A plan to build a $220 million hotel and conference centre for Whangārei is in danger of collapsing after Whangārei District Council withdrew proposed funding for the conference centre from its Long Term Plan.
But the people behind the Oruku Landing Development - planned on Riverside Dr - say whiledisappointed at the council's decision, they will continue to keep the development going.
Last year the Government announced it was putting $60m into the planned conference and events centre that was part of the $220m Oruku development.
The $60m was from the Covid Response and Recovery Fund to build the $93.7m Oruku Landing conference and events centre.
The plan had been backed by Northland's political leaders and was to form part of the wider $220m Oruku Landing development on the 12,460sq m site, which would also include a four-star hotel and apartments. That development, which was expected to cost another $119m and already had international hotel chain Accor signed, is being promoted by the Northland Development Corporation (NDC).
However, for the conference centre to proceed it needed roughly another $30m from ratepayers, with WDC asked to front up with $17.6m to pay for infrastructure such as roading, stormwater and wastewater networks, and Northland Regional Council (NRC) was asked for $14m to help fit it out.
But WDC CEO Rob Forlong said the Oruku Landing Development will not be included in the council's 2021-31 Long Term Plan, although future options can be considered.
"It is a difficult situation for all involved and as soon as we have more information regarding a way forward we will communicate that," he said.
Developers Barry Trass and Ben Tomason on the Riverside Dr site where they have plans for the $200m Oruku Development that WDC has withdrawn its support for.
"Our LTP consultation proposed that we include $23m towards Oruku Landing in our 10-year plan subject to a number of conditions being met. These included a commitment of $14m from the Northland Regional Council (NRC), and a satisfactory outcome of due diligence investigations.
"Recently, two things happened. The NRC approved only $6m to the project in its LTP, and we found matters arising during our due diligence process that would require further investigation and negotiation.
"The effect of these was that the conditions our council required have not been met.
"As a council we have a responsibility to use ratepayer funds prudently. That includes advancing great projects the community supports, as well as protecting the ratepayers' investment.
"The conditions we required for Oruku Landing have not been met. The project will not be going into the 2021-31 Long Term Plan.
"That said, there is nothing to stop us continuing to negotiate on our community's behalf with all organisations involved in managing and funding the Oruku Landing proposal. We will continue to work with the Government, NRC, and Northland Development Corporation to see if the proposal for a facility which we would all love to have can be revised and delivered."
Developer Barry Trass, from NDC, said he was hugely disappointed in the decisions of both councils, but said while it put the development at risk, NDC was determined to get it back on track and look at other funding sources.
''But it stems from the NRC only giving $6m, which was less than we asked for. I wonder if the NRC realises the implication of that decision. This is putting a $60m Government investment into our city at risk, and I don't think it will look good if we can't get this over the line between us.''
Trass said the whole development could not go ahead if the conference centre part did not proceed.
''They complemented each other. We needed the conference centre to attract large conferences and events to the city and the hotel and apartments would have provided the top class accommodation that Whangārei badly needs.
The $220m Oruku Landing development on Whangārei's Hātea River is at risk after WDC pulled its funding for the project from its Long Term Plan.
''This is disappointing, but it's not the end of the line. We've had hurdles before - just like throughout the Hundertwasser Centre project [of which Trass was a main player]. We've got Hundertwasser over the line and we will work with all parties to get Oruku delivered too.''
Trass said Accor hotel chain was still happy to be on board as the hotel partner, which was reassuring.
