Building firm queries Fletcher delays on Christchurch east frame housing

Tuesday, 13 February 2018

The east frame is one of the city's most important post-earthquake anchor projects.

The owner of a Christchurch building firm is questioning why Crown agency and Canterbury Earthquake Recovery Authority successor Ōtākaro seems unable to speed up Fletcher Living's east and north frame housing developments in the central city.

Fletcher Living has contracts with the Crown to purchase blocks of east frame land as it begins construction on each apartment development, designed to deliver up to 900 homes by 2026.

The first Fletcher Living east frame post-2011 earthquake anchor project housing development on the corner of Latimer Square and Hereford St, Christchurch.

But Blair Chappell, managing director of townhouse developer Williams Corporation, said progress had been appalling and no-one seemed to be questioning why a company reporting huge losses was in charge of one of the city's most important post-earthquake anchor projects.

'It's incredibly important for investment in the central city. Local businesses are putting money into restaurants and shops but the residents aren't there to support them,' Chappell said.

Blair Chappell is unimpressed with the speed of Fletcher Living on Christchurch's central city east frame housing project.

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A spokesman for Greater Christchurch Regeneration Minister Megan Woods said the situation was being closely monitored.

Discussions were also under way between Fletcher and Housing Minister Phil Twyford over the possible inclusion of Labour's KiwiBuild affordable house construction programme.

An Ōtākaro spokesman said the Crown signed the development agreement with Fletcher Living in December 2015, prior to the establishment of Ōtākaro.

'Ōtākaro cannot presently alter the agreement without consent of the parties and is working with Fletcher Living on the successful delivery of this long-term development,' he said.

Chappell said delays were evident after a year of construction of the first Fletcher apartment block in One Central (formerly known as the east frame), where the roof had yet to be completed.

He claimed his own company had begun a similar, if less complex, development at the same time and the roof had been completed months ago.

'Megan Woods changed the deal with Leighs Construction after the cost blow out of the metro sport centre before it got too out of hand. Why is nobody dealing to Fletchers over lack of progress?'

Chappell said costs were mounting for taxpayers and for Christchurch ratepayers for maintenance of the area.

'Fletchers should also provide answers about the delays. The east frame is too big for one developer and other firms should be able to compete.'

Working with Ōtākaro to become a developer had proved too difficult, he said.

He had responded to an invitation for expressions of interest in a frame property and received a response from Ōtākaro saying the type of development and land sale was still under consideration.

'How many years have they had to work out what they want? From a developer's perspective it seems too difficult to do business with them even when they seek interest,' Chappell said.

The first two apartment blocks by Fletchers are under construction after numerous delays. They are part of 6.8 hectares in 13 large lots averaging about half a hectare each, or 5200 square metres. Fletchers paid $2 million for the first block last year.

Structural steel framing has been erected at the One Central site on the corner of Hereford St and Latimer Square for 20 three-storey terrace homes scheduled for completion in spring 2018.

Earthworks are under way on the corner of Madras and Lichfield streets for construction of 44 apartments. Other blocks have projected starting dates over the next two to four years.