City with a broken heart: Civic Square key focal point for election issues in CEO pre-election report

Tuesday, 23 July 2019

Leaving Civic Square this way is 'not an option' according to the report.

The city's heart - Te Ngākau Civic Square - is shaping up to be a key battleground in this year's election.

The City to Sea Bridge, the Civic Administration Building, the Library, Capital E, and the Town Hall all have seismic issues and decisions on the square's fate will have major implications for the city's budget.

Wellington Council CEO Kevin Lavery said decisions on the much-loved central library's future were 'inter-related' with Civic Square and visions of what it might be.

Wellington City Council chief executive Kevin Lavery says running Wellington is ''not for the faint hearted''.

But Civic Square itself also had seismic issues with precast concrete flooring and frames that needed stiffening.

* City defunds Wellington's indoor arena

The city's library was designed for a different time the report says.

* Repairs for fern orb sculpture

* Library will be closed for at least a year**

John Milford says the city has 'hard decisions' to make on its assets, including Civic Square.

'We've been working on Civic Square and struggling with it and understanding more about the engineering implications of Kaikōura for some time, it's a very challenging site.'

In an interview with Stuff, Lavery suggested politicians would have major choices to make about the square after the election: How safe do they want it to be? Do they want to throw a lot of money at it over the next six years or spread that spend over 20 years to relieve strain on the public purse?

'I'm not being funny, they're the sort of choices they have, they make a big difference on the rates impact.'

Lavery was speaking after the release of Wellington City Council's pre-election report, a document designed to be a warts-and-all examination of the city's prospects.

Many of the city's indicators are tracking well including quality of life statistics, unemployment, and average household income - all are higher than many other major New Zealand cities - but Wellington residents face tough trade-offs in the future, according to the report.

Fewer than 50 per cent of Wellingtonians believe the council makes decisions in the best interest of the city.

Wellington will have to 'live with more water' thanks to climate change, the city's share of the tourism market is 'shrinking', and it is 'simply not possible' to keep a lid on rates due to a stack of bills the city faces that were never budgeted for.

Wellington Chamber of Commerce Chief Executive John Milford said the city had 'hard decisions' to make on its assets, including Civic Square.

'That's the reality Wellington is facing. We have an infrastructure deficit in a number of areas and we need to have some robust discussions about what we want, and what we can afford.'

Lavery highlighted Civic Square as one of three projects where financing could be changed to help the budget.

The other two included aspects of Let's Get Wellington Moving - where user charges and targeted rates could come into play - and the Indoor Arena.

'At the moment we don't have a site for the arena … it's not real until you've got a site.'

Lavery said the bills due for Civic Square could be offset by the sale or lease of land there to generate activity on the square and cash.

One target for development could be the Michael Fowler Centre carpark, already part of a 'live' proposal with a developer.

'If we've got a really ambitious agenda, as we do, and we want to stay ambitious then we have to look at all of the ways we can deliver that. It can't all be through the traditional means of leaving it to the ratepayer.'

Milford agreed saying Civic Square was 'prime real estate'.

Even the library could be further developed: 'Most people think of the library building as just a library building but it's not, it had something like nearly 300 staff above the library in an office block. That office block could be a lot bigger than it currently is.'

You may not be able to beat Wellington on a good day but its share of the national tourism market is shrinking.

Another is Jack Ilott Green but Lavery believed a development on the hotly contested plot of grass would be unlikely given attitudes around the current council table.

'The site could be developed, there's no question about that.'

One bill not high on Lavery's list to cancel was the $179 million convention centre on which construction was due to start soon.

'There are contracts as part of that already signed for delivery, so there are consequences, but yeah you could leave it unfinished.'

THE HIGHLIGHTS

FINANCES

* The city lost $257m in rateable value after the Kaikōura quakes

* $200m of capital projects have also been added-on including the Town Hall and St James Theatre, after the quakes.

* Council could exceed its 175 per cent debt cap in future if decisions aren't made on the priorities and timeframes of projects.

TOURISM

* Wellington's share of New Zealand's tourism market is 'shrinking' and has been identified as 'an area of concern' in the report.

* Lavery has identified a lack of flights to key Asian destinations as a factor behind this.

HOUSING

* Agreements around apartment conversions and the development of Arlington are chalked up as wins for the council.

* A need is identified for council to partner with developers and central government to find solutions to affordability issues in Wellington.

* Council will need to put $180m in to upgrade its social housing portfolio during the next triennium.

ARTS & CULTURE

* A need to help the sector by attracting audiences is identified in the report.

* A shortage of venues has caused issues in the city.

TRANSPORT

* Part of Let's Get Wellington Moving could be paid for by targeted rates on properties closest to key transport routes.

* Questions are posed around how to keep the city 'liveable' as parts of the city become construction zones.

* An integrated body to manage the LGWM project is mooted, possibly along the lines of The Waterfront Company.