Money has to come from somewhere for Tank Farm development

The tanks on the waterfront will be replaced by parks, apartments and shops. Picture / Dean Purcell

Creating parks, transport and other infrastructure on Auckland's Tank Farm will cost $300 million to $400 million and should be paid for from the sale of Auckland City Council's shares in Auckland Airport, says Mayor Dick Hubbard.

The cost of providing public spaces and amenities on the 35ha waterfront land falls largely on the Auckland City Council, which has no money to do the work. It must raise the money from new sources or rates.

Much of the public money will be spent up front. One of the first projects will be the construction of a movable pedestrian bridge across the Viaduct Harbour to Jellicoe St on the tank farm. Public money will then be spent upgrading Jellicoe St alongside Sanford's fish markets with restaurants, bars and cafes - possibly in time for the 2011 Rugby World Cup.

The 20-year plan to develop the contaminated dockland is the largest public-private development in the history of Auckland, with a completed value of about $2 billion in apartments, offices and public spaces.

Rezoning the land from industrial to residential and commercial will also see the value of the land more than double to $500 million.

The value of private sector development on the prime waterfront is estimated at $1.5 billion, according to Brent McGregor, valuation director for CB Richard Ellis.

That is on top of the $300 million to $400 million of public infrastructure spending - a figure the council said would increase "significantly" if the public wanted more public space.

By comparison, 200ha of docklands in Melbourne is being developed over 20 years at a cost of $9 billion with public assets worth $500 million.

Mr Hubbard, whose council is under pressure to raise rates for the waterfront and other capital works, said it was time to question selling the airport shares and ploughing the money into the waterfront. The council's 12.8 per cent shareholding is worth $300 million.

"I believe we should exchange this piece of family silver for a piece of gold," said Mr Hubbard. But in trying to sell the shares he faces a tough fight with deputy mayor Dr Bruce Hucker, who leads a City Vision-Labour team on the council opposed to their sale.

Dr Hucker yesterday said there were other revenue sources but acknowledged ratepayers would have to make a contribution under his plan.

The net cost to ratepayers over the 20 years of the development is about $210 million after development contributions are applied.

Development contributions on the Tank Farm are expected to be higher than the 7.5 per cent level set at the neighbouring Viaduct Harbour to reflect the high quality and costly public services.

Dr Hucker, who chairs the political liaison group for the Tank Farm, said the council was talking with Ports of Auckland, the major landowner, about receiving a share of the commercial return from the development.

Other revenue streams were being investigated to soften the blow on ratepayers, he said.


Public submissions

Aucklanders can have their say on the rules for the Tank Farm by sending views to the Auckland City Council before March 17.

The council wants feedback before notifying a district plan change on May 31 to rezone the land from marine industrial activities to marine, commercial, residential and open space use.

Once the plan change is notified and goes through the Resource Management Act process, the public will have another chance to comment.

To get a form call the council on (09) 379-2020 or visit the website below.