Wellington City Council receives $38 million payout on quake-damaged Civic Administration Building

Monday, 2 November 2020

A settlement has been reached between the Wellington City Council and its insurers over the Civic Administration Building. (File photo)

The Wellington City Council will be getting a $38 million insurance payout after one of its buildings was damaged in the 2016 Kaikōura earthquake.

A settlement was reached between the council and its insurers over the Civic Administration Building in Te Ngākau Civic Square.

The six-floor building was constructed in the early 1990s. Senior council staff, engineers and insurers were involved in the negotiations, focusing on how badly damaged the building actually was and whether it should be repaired or demolished.

In a statement, Mayor Andy Foster said the resolution of the claim meant the council could make decisions about the building and the next steps that need to be taken.

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The Wellington City Council received a $38 million insurance payout after one of its buildings was damaged by the Kaikōura earthquake in 2016. (File photo)

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“It also means we can start talking about what we as a city community want for the future of Te Ngākau Civic Square,” Foster said.

“It will be a chance to think laterally and creatively, and collectively this will be an exciting opportunity for Wellington.”

The council’s chief financial officer, Sara Hay, said it acknowledged the process had taken several years but there were a number of factors that created challenges.

“This includes the fact that the extent of the structural damage to the building has been gradually revealed during inspections – and that the inspections themselves have presented significant risk to the people involved,' Hay said.

Temporary props were installed in sections of the building due to concerns about the safety of inspectors.

Council chief executive Barbara McKerrow said a decision on the future of the building had not been made but it was important to think about the future of the precinct as a whole, including the 1950s Municipal Office Building.

The council will receive a report on the Municipal Office Building and related issues before Christmas.