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Home / New Zealand

Recession woes slow plan for big city centre

Vaimoana Tapaleao
By Vaimoana Tapaleao
Pasifika Editor·NZ Herald·
11 Jan, 2009 03:00 PM3 mins to read

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Flat Bush is going ahead, the council says, but some facilities are on hold. Photo / Martin Sykes

Flat Bush is going ahead, the council says, but some facilities are on hold. Photo / Martin Sykes

KEY POINTS:

Plans for one of the country's newest town centres are likely to be scaled back because of financial pressures of the economic crisis.

Manukau City Council planners have been developing a blueprint for Flat Bush since 1997. Turning the 10,000-population town into a thriving centre populated by 40,000
people by 2020 is one of New Zealand's most ambitious planning projects.

Eight other big multi-million dollar Auckland City developments have stalled, including the $250 million Soho Sq project in Ponsonby and the $600 million Rhubarb Lane development in central Auckland.

The Flat Bush plan is far larger in scale - but those behind the plan are hoping its long-term nature means it can ride out the current bumps caused by the troubled economy.

The town - billed by Manukau City Council as "the country's largest and most comprehensively planned" - is expected to compare in size with Nelson by 2020.

But planners have been forced to delay some of the town centre's main facilities, including a swimming pool, recreation centre and a library.

And they are reviewing the master plan to see what they can still afford in the ailing economic climate.

The developers behind $1 billion worth of new housing said yesterday plans were still on track.

But they face a riskier development if planned amenities to attract a new population are put on hold.

Manukau City Council Mayor Len Brown said the new facilities - on which construction was to have started next year - would be put back for at least three years.

"At the moment, we are deferring that development in the 10-year plan on the basis of the downturn in property and residential markets," Mr Brown said.

"That's not just good financial planning, but it's also recognising that people are finding it difficult at this time. So we've really got to cut our costs."

The Flat Bush plan features a large housing development, town centre and seven new schools on 1700ha of undeveloped land.

It is led by three main investors - the council, developer Melview Developments and the steering group for the project, Tomorrow's Manukau.

Manukau City Council, which bought 20ha of land to be used for the town centre, says it must delay its plans for a $3.2 million library, a $10 million swimming pool and recreation centre because of the recession.

The Manukau City Council's policy and activities committee chairwoman, Colleen Brown, said the project - featured in the council's 10-year community plan to be released in February - would have to be reviewed and revised.

"With the economic situation, you're always going to have things that will be dropped," she said.

"Flat Bush is a big project - with the town centre, arts centre and parks it's a major project and that's going to be an area of discussion for the council.

"We have to be very careful with how we spend money now."

Tomorrow's Manukau Properties chief executive Mike Higgins said a reassessment of the project and the current economic crisis would be made in March.

"In the scheme of things, you wouldn't want to build during a bad time. So while we haven't formally made any moves, we'll be making an assessment around the quarter of this year to see if plans might have to slip back."

Melview spokesman Klaus Sorenson said Flat Bush was a "very, very long-term project and as in many long-term projects, it'll ride out shorter-term economic bumps.".

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