By doing its own development and working closely with its architects and builders, the firm acquired premises that were above the standard they could have achieved on an economically justifiable basis with a commercial developer, he said.
The CAG has said that if it facilitated the proposed $35 million community bond-financed development entity, no developer's margin would be charged. Property experts said developers typically worked on a margin of 15 per cent-plus.
Mr Gordon was commenting ahead of the publication today on the CAG website of an article written to help explain the thinking behind the CAG proposal. (See story below)
Although he is not a member of the CAG, Mr Gordon is familiar with the thinking of its founder and chairman, property developer Paul Adams, and other key members.
Mr Gordon said the council had an opportunity to get a purpose-built civic centre without having to pay a developer's margin.
"And they will be able to tap into the considerable experience of the CAG members."
Graeme Horsley, a CAG member who has taken a lead role with Mr Adams in engaging with the TCC, said he understood the council had engaged several experienced consultants to look at its CDB redevelopment options. He expected decisions to begin to emerge in the New Year. Mr Horsley is one of New Zealand's leading valuation experts, chairs Vital Health Care Property Trust, and is a director of other property companies.
He acknowledged that there was an element of suspicion in some circles about the motives of the CAG.
"We're a ginger group. Our whole raison d'etre was that we had seen a need for different types of civic amenities. We do not see any need for us to be the developers - we're happy for anyone to put their hand up. The bond proposal is a very simple version of a public-private partnership. We can help put the bond together, and to identify some of these other financial options that may be different to a straight debt option."
Tauranga Mayor Stuart Crosby said the council welcomed the CAG's proposal.
"The CAG's option is in the mix as are a number of other options and also delivery mechanisms," he said. "I want to emphasise that we do realise this project is significant for the city, so careful consideration is paramount while we go through the decision-mamking process."
Mr Crosby said the council expected to have refined its options down to one by March next year.
Chance to make council's money go further - Gordon
Sharp Tudhope partner John Gordon, who recently attended a briefing convened by the TCC for community input into redeveloping the CBD, is impressed by the proposal.
However, he said in an article to be published today on the Civic Amenities Group website, the council's proposed spend of $8 million would go much further if it was used in an integrated manner with the CAG proposals.
"It also became very apparent to me at the workshop that what is proposed by CAG for the CBD is not as well understood as it could be."
He summarised the CAG proposal's key points:
-Council's administration building is full of toxic mould and staff are currently in alternative premises
-Council needs to rehouse its staff in new premises, which it can either own or lease
-CAG proposes that new premises for the council are developed by a community-owned and funded entity
-The entity would not charge a developer's margin, substantially reducing the rental payable by council
-The new premises would be on Durham St, enabling that part of the CBD where the council's premises are currently located to be turned into open space
-That part of the council's premises adjoining the Tauranga Public Library and directly opposite the Art Gallery would be retained and converted into a museum
-Freed of the capital constraints of owning its own premises, the council could invest in a purpose-built stadium of an appropriate size and cost.
"Broadly speaking, after taking into account the cost to council of remediating its existing premises or building new premises, the cost of all of this is cost neutral for council," says Mr Gordon. "It is also a 'sweetheart deal' because experienced business people with the appropriate skills are offering those skills to transform the CBD for the benefit of the community. Council and its staff also get a purpose-built, modern building with all the efficiency and productivity benefits that flow from that.
"If we dither, there is a risk that this opportunity will be lost. The opportunity should be grabbed by council with both hands right now."
The vision
The Civic Amenities Group proposal envisages:
* Creating a new Civic Centre funded by a $35 million community bond.
* The TCC would then lease back the building at an estimated $3 million annually, similar to the cost of borrowing the funds to fix and operate the existing buildings.
* Developing a museum and an inner city stadium.
