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Home / Rotorua Daily Post

Rotorua District Residents and Ratepayers council candidates would revisit Lakefront development

Zizi Sparks
By Zizi Sparks
Multimedia journalist·Rotorua Daily Post·
31 Mar, 2019 05:00 PM5 mins to read

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A conceptual design of the Rotorua Lakefront after redevelopment. Image / Supplied

A conceptual design of the Rotorua Lakefront after redevelopment. Image / Supplied

Aspiring councillors representing the Rotorua District Residents and Ratepayers are promising, if elected, to revisit a $40 million decision to revamp the Lakefront.

Candidates campaigning for the October election were asked by the Rotorua Daily Post if they wanted to reverse the decision to redevelop the Lakefront and how much they were willing to pay.

They were also asked if they thought they could achieve the majority representation required to reverse the decision.

But those on the council who are driving the project say it's an "exciting" project, has a strong business case, had already been consulted on and "fortunately" had the green light.

Candidate Conan O'Brien pledged to reverse the current Rotorua Lakes Council's decision.

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"After the election, the cost to reverse needs to be known, then that can be weighed against the costs to proceed so councillors have the ability to make informed decisions.

Conan O'Brien.
Conan O'Brien.

"Negotiating council's exit from contracts will require a majority of councillors to act decisively to budget and deliver sound economic management for the long term."

He described the development as "reckless spending" of public money and a "vanity project". He was concerned the final costs could exceed council estimates.

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Incumbent councillor Peter Bentley, who is running with the ratepayers association, said spending $40 million on the Lakefront would create a "huge financial burden" and "be pure madness".

Peter Bentley.
Peter Bentley.

Bentley said the council's debt levels needed to be reined in.

"Negotiating our way out of contracts will require skill and expertise only achieved if we have a majority of business-minded councillors who are prepared to act with common sense and financial prudence."

A Local Government New Zealand spokesman said council policy could be changed if a majority of councillors decided to do so but could involve "significant costs" if contractual obligations were involved.

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The Lakefront redevelopment was consulted on during Long-Term Plan consultation.

The project includes removal of the Soundshell, enhanced landscaping, a sculpture park and lake edge improvements among other things.

It is being jointly paid for by the council and the Government's Provincial Growth Fund grant of $19.9m.

The council has issued a request for proposals for the construction of stage one and expects to receive proposals for pricing estimates this month. The council is in the process of applying for resource consent and getting approval from stakeholders. After that, a contractor will be appointed.

Detailed designs are still being finalised but the development timeframes and budget are on track.

Local government expert Professor Janine Hayward, who is the University of Otago head of politics, said a new council was not bound by the decisions of a previous council but agreed changing them could carry a significant cost.

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"A new council can pursue whatever agenda has the support of the majority of elected members and this might include decisions that the previous council had made."

Hayward said the cost of overturning a decision would depend on the details of contracts already awarded.

"A new council can have any views it wants but there'll probably be some clauses to protect the contract.

"If they are not bound - and there may be something about the contract that does bind them - they do have political freedom but if they want to be re-elected they'd want to be seen as fiscally responsible.

"When you get elected and have responsibility for ratepayers money, that can change your view on what is the right thing to do."

Hayward said "it's not unusual for councillors to become the caretaker for projects they would not have been supportive of".

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The Rotorua District Residents and Ratepayers only mayoral candidate, Dr Reynold Macpherson, said he believed the Lakefront development should be "significantly downsized".

"Our candidates have a range of views on the proposed Lakefront development. Nevertheless, if elected and able to command a majority, we have resolved to review the project's financing, plans and progress against our revised Long-Term Plan."

Dr Reynold Macpherson.
Dr Reynold Macpherson.

Macpherson believed the current plan reflected commercial interests, and committed ratepayers and taxpayers to risks and debt.

"It should be significantly down-scaled to what a much wider group of stakeholders can reasonably afford."

Councillor candidate Peter Jones said the cost of cancelling contracts not in the public arena was "conjecture".

"Rotorua simply cannot afford the Lakefront development as proposed.

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Peter Jones.
Peter Jones.

"Council has signalled it would contribute $20m to the $40m project ... I cannot help but wonder where the money will come from."

Jones said in his opinion, "a simple spruce-up" including better toilet facilities, playground upgrade and removing "bird poo" would suffice.

He believed the Lakefront development would mostly benefit the planned hotel and spa complex so was not for ratepayers to fund.

Candidate Kevin Coutts told the

Rotorua Daily Post

he would revisit, though not necessarily reverse, the decision.

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Kevin Coutts.
Kevin Coutts.

"I am against the development due to the extra debt it would incur as well as large parts of the design."

Current councillor Karen Hunt said the Lakefront redevelopment was an important and exciting project.

Rotorua Lakes councillor Karen Hunt.
Rotorua Lakes councillor Karen Hunt.

"I completely understand how anyone standing for council feels about wanting to make a positive change. However, as anyone who has been elected understands, anything that's already in motion and where funding has been established, those projects carry on.

"It's not the projects that have been given the green light that a new council can have an impact on, it's the future projects."

Hunt said a desire for an improved Lakefront was longstanding.

"This is not something one person has dreamed up or even this particular council.

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"It's been something many people, some who have already passed, have desired. To try to derail it is fortunately not able to happen."

Hunt said the redevelopment had a strong business case, strong community desire and had been consulted on.

RDRR candidate and current councillor Raj Kumar did not respond by deadline.

The local body elections are on October 12.

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