Coromandel's $15m Kopu Marine Precinct moves closer as funding found

The Kopu Marine Precinct is expected to provide a major boost for the region. Photo / TCDC-Peter James Quinn

Managing to find almost $7 million to meet cost overruns, partly from labour shortfalls, has sharpened the spade to make the Kopu Marine Precinct the closest shovel-ready project in New Zealand.

The development will now cost $15,310,000 and would have blown out further if major contracts weren't signed by July 27.

The build will be finished by April 2024.

"We are really grateful for Fulton Hogan and Heron working with us by holding resources and time in their extremely busy work programmes until we got this project across the line with funding," said Thames-Coromandel Mayor Sandra Goudie.

The Kopu project is expected to be finished in April 2024. Photo / TCDC

"We realise the longer it took to finalise, the higher the costs due to inflation, supply chain issues and the tight labour market."

The Kopu Marine Precinct was originally costed at $10 million and received a $8.2m grant from a Government infrastructure fund in 2020.

The funding - part of a $50 billion Covid-19 Response and Recovery Fund - was touted in 2020 as playing a vital role in New Zealand's economic recovery from Covid-19 by providing opportunities to redeploy regional skills and training with projects that could commence as soon as possible.

The build includes a commercial slipway, commercial wharf and pontoon and haulage access area, a new public recreational boat ramp which could also be used commercially to test trailers, a parking area and a new access road (King Street) linking Queen St and Kopu Quay.

Outside contractors are doing the bulk of the work, including Fulton Hogan, which starts civil works in October, and Heron Construction for the maritime infrastructure. TCDC say local sub-contractors will be used "as much as possible" throughout the build.

The bulk of money to meet cost overruns is met by $4.05m of the Government's Better Off Funding.

Another $1.4 million is from the Thames Urban General-Purpose Reserve, and a grant yet to be received of up to $1 million from MBIE that may also have to be funded from Thames local ratepayers if other sources can't be found.

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Confirmation from MBIE is due mid-late August at the earliest, because the decision requires ministerial approval and Parliament is in recess until August.

The council agreed to proceed with a $1.13m overall shortfall, which it hopes to find from existing or new potential funders to avoid the potential $15.67 per annum for 30 years on Thames rates bills.

There would be no rating impact on ratepayers outside the Thames Ward.

The Kopu Marine Precinct is said to be the closest shovel-ready project in New Zealand. Photo / TCDC

Thames Business Association chief executive Sue Lewis-O'Halloran said the development had wide support from businesses and would provide a water-based alternative to Thames for Coromandel's aquaculture industry, if the road to Coromandel Town was blocked.

It was a major boost for Thames and the Hauraki region, she said, allowing for a ferry linking Thames with Coromandel Town and Auckland, an all-tide wharf with a commercial wharf for barges and coastguard also available to companies catering to growth in Auckland, Tauranga and Hamilton.

"We're hoping it will turn the tide for this area. It's our turn," she said.

"Thames has always been the poor relation to the east coast and that needs to change. We're a substantial provincial service town."

She took aim at infometrics and demographic information that predicted a population decline for Thames.

"That's pre-Covid figures and that's no long longer true. Families are moving here, we're only 90 minutes to half of the population of New Zealand, and the reality is Thames is desperate for industry and housing, and this will help us enormously."

Local Government Minister Nanaia Mahuta announced the first tranche of its Three Waters Reform package, saying councils have had to offset difficult decisions about funding water infrastructure and services against other important initiatives, with water infrastructure often coming out second best.

"As well as saving ratepayers money in the long term, the Government's reform programme will enable councils to focus on the wellbeing and aspirations of their communities. This "better off" funding can be used for those projects communities feel they need the most, be it local parks and gardens, swimming pools, libraries and community centres, or investment in public transport and infrastructure to protect against extreme weather events and sea level rises," she said.

Thames-Coromandel Mayor Sandra Goudie said it was good news for the region, "and also boosts potential Māori economic development opportunities for Ngāti Maru in the longer term as Treaty settlements are finalised over the next few years.

"This is a great day for Thames, the district and the wider region to have a massive piece of infrastructure being built that will enable commercial opportunities, while also benefitting recreational users," said Goudie.

Thames-Coromandel district Mayor Sandra Goudie. Photo / Alison Smith

Sue O'Halloran said the Association had lobbied hard and worked with the Council's Economic Development team, believing the MBIE funding was "unlikely" to fall through.

"It's unlikely to fall through because this is the closest shovel ready project in all of New Zealand. They have signed the contract, they have the contractors lined up, it's a go."

The aquaculture industry is among key industries for the Coromandel.

In a business case for the precinct at Kopu, the council said new entrants to the market were restrained by the existing haul-out facilities in Kopu, described as "somewhat primitive and simply workable at best".

Councillor Gary Gotlieb said despite unanimous support from the council, there were reservations about the funding sources being secured in full.

"Several of us had concerns, but when you look at Thames having three councillors plus John Morrisey on-side plus Sandra, they had the majority. Promises were made that we'd all get our entitlements for our wards in due course.

"The shortfall is to be met by the Thames local ward."

The budget includes a 20 per cent contingency ($3,062,000 of the total cost of $15,310,000).

A ceremony is planned for September.