New QE Health building concept design. Image / Supplied
Rotorua Lakes Council has pitched in $1 million in funding and a $2m loan for the $18.5m redevelopment of a lakefront health facility.
Construction of QE Health's world-class facility at the Rotorua Lakefront began today.
Watts and Hughes Construction has been appointed to build the 3000 sq m state-of-the-art facility adjacent to its current location.
In March, Rotorua Lakes Council granted consent for the development, which is expected to create more than 30 construction jobs.
"Almost 80 years since it was built, the organisation now has a fresh start, while keeping hold of what makes it so special, its remarkable history, highly experienced staff and comprehensive range of services," QE Health's chief executive Dr Aaron Randell said.
"QE Health takes its responsibility for the health of the people of Rotorua and Aotearoa seriously.
"We're delighted to soon offer the same level of high service and care people have come to expect in modern facilities, befitting the needs of the community."
Randell said setbacks due to Covid-related supply issues and escalating building costs had delayed the project, however additional funding had now been confirmed.
Funding for the build and fit-out consisted of a combination of grant and loan funding provided by Kānoa, the Government's Regional Economic Development and Investment Unit, Rotorua Trust, and now Rotorua Lakes Council, which has allocated $1m from its Economic Recovery Fund, set up as part of Council's Economic Development Strategy following the Covid-19 pandemic.
The council said it had allocated money "in recognition of the development's benefits to the community and contribution to economic recovery and growth in the district."
The council has also provided QE Health with a short-term bridging loan for up to $2m, with commercial terms to be confirmed.
Rotorua Lakes Council's deputy chief executive District Development, Jean-Paul Gaston, said the grant recognised the benefit the development had for the community through retention of existing jobs, creation of new jobs and on-the-job experience for students, the continued provision of health and wellbeing services to the community, and it further strengthened Rotorua's brand as a destination spa city within the tourism market.
"QE Health has a strong history and reputation within the district and we're proud to be able to support this venture and the next stage of growth," he said.
Commercial manager Dennis Cresswell from Watts and Hughes Construction said the company was proud to partner with QE Health on the project.
"We are looking forward to the construction phase with Veros Project Management and continued support from our Rotorua subcontractors and suppliers."
Rotorua Trust Manager Tony Gill said QE Health was one of Rotorua's true icons and they were delighted to see construction begin.
"QE Health is one of a very few facilities across Aotearoa to offer such a wide range of services under one roof.
"QE Health has always had innovation at its heart, and almost 80 years since its inception that innovation remains at the centre of the organisation, benefiting all of Rotorua," Gill said.
Earlier this year initial earthworks were completed at the site to ensure the land was stable to build on.
QE Health will lease the lakefront land from Pukeroa Lakefront Holdings Limited and share the site with Wai Ariki Hot Springs and Spa, which will offer non-clinical, luxury spa choices, while QE Health would continue to offer clinical treatments and champion Rotorua as a wellness destination.
The facility is set to open to the public in mid-to-late 2022.
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