Details of inquiry into council part in $1b centre revealed

A $27m library is planned for the new town centre at Westgate.

The Auditor-General, Lyn Provost, has released the terms of reference for an inquiry into Auckland Council's involvement in a new town centre at Westgate, which is costing ratepayers about $200 million.

In a statement released this afternoon, the Office of the Auditor-General said it dad received a number of concerns about the way in which the project was established and is being managed, largely relating to how the line between the public and private benefits of the project have been managed.

The Westgate town centre at Massey Nrth is a $1 billion public-private partnership between New Zealand Retail Property Group(NZRPG) and the council. It was first mooted in 2002.

The council is spending $200 million on roading, water, parks and community facilities, including a $27 million library and town square.

In 2010, Waitakere City Council entered into a set of agreements with New Zealand Retail Property Group Limited (NZRPG) and related companies for the development of the new town centre at Massey North at the end of the Northwestern motorway.

The Auditor-General decided it was appropriate to examine and report on the matters raised with the financial watchdog, given the public sector's continuing interest in exploring new ways of working with private sector partners and the novel collaborative arrangements in this project.

The inquiry into the project will focus on the period from 1 November 2010, but the background section of the report will describe events at the former Waitakere council, as they are relevant to setting the context for the inquiry.

The inquiry will examine:

• the steps Auckland Council took to assess the project and to put in place appropriate management and reporting systems for the project;

• how Auckland Council is managing the risks of conflicts of interest and related-party transactions within this project; and ensuring appropriate separation and allocation of costs for the work carried out for the benefit of Auckland Council and for NZRPG;

• how Auckland Council is checking, monitoring, and reporting on the project's costs and benefits (both tangible and intangible) and progress to management, Auckland Council, and the public;

• any other matters that the Auditor-General considers it desirable to report on.