Timing hikes council costs

The Rotorua Lakes Council is blaming a nearly half-a-million-dollar overspend for its Eat Streat project on "an escalating construction timeframe".

The total cost for the Eat Streat development was reported as $2,737,600 at a council committee meeting last Thursday. The Rotorua Daily Post had previously reported the total cost as $2million.

Council chief financial officer Thomas Colle said the $2,737,600 total cost reported at the council meeting included $270,000 for retractable roofs, which were being paid for by Eat Streat business owners.

He attributed the $467,600 balance to a variation in the building timeframe. "The balance of additional costs largely relates to a variation in the construction contract to speed up the building timeframe so the development could be ready for use by Christmas 2013," he said.

"The $2million figure reported in the past related only to the council's costs and didn't at that time include the cost of retractable roofs which were to be paid by individual Eat Streat business owners. It also didn't include subsequent costs for escalating the construction timeframe. "Under current conditions, the council's capital investment in Eat Streat is expected to be fully recovered in just over 15 years," he said.

The council will also seek to recover $800,000 from its Footpath Trading Zone Policy over the next few years, which will see Eat Streat businesses charged a footpath permit fee for outside dining areas.

That policy asks businesses to seek an annual permit from the council and to pay a fee for use of a designated area fronting their premises. Councillor Mike McVicker said Eat Streat had been a success, but thought the council should have tried to cover costs sooner on investments in the CBD, including the Museum Cafe.

"Eat Streat has been a success story. It is a busy spot in town and has proved to be very successful. It is a disappointment we haven't endeavoured to recover costs."

Ambrosia restaurant owner Kristopher Beehre said the retractable awnings would be useful heading into the winter months. "It is still going to be cold and the chill factor for Rotorua with the wind is quite bad, but they will offer some shelter," he said

Overall Eat Streat had been a success, he said. "It is what you make of it. You've got to make it work, like any business - you can't just sit on your laurels. We've got that foot traffic but you can't just open your doors and hope for people to come in."