Watch: This is what Wellington’s Courtenay Pl Golden Mile will look like - and what Tory Whanau has to say about it

Thursday, 13 February 2025

Construction will begin for the first stage of Wellington’s Golden Mile in late April, but the council will not be providing businesses with financial compensation.

The first stage of work will focus on the intersection of Courtenay Place and Cambridge Terrace, and is expected to take eight months.

The contract for revitalising the rest of Courtenay Place has not yet been signed, but it is expected to take two years and will start after the first stage is complete.

Construction for Wellington’s long-awaited Golden Mile project will kick off in late April, but businesses will not be getting the compensation they are hoping for.

In an exclusive sit-down with Stuff, Mayor Tory Whanau said the council will not be able to compensate business owners without passing the cost directly on to ratepayers.

Instead, they will support businesses through clear signage, online marketing campaigns, enabling short-term pop-ups in empty spaces and providing a dedicated city manager to help with communication.

Council officers are also considering the possibility of grants, like the $1,500 ‘micro-grants’ made available to businesses impacted by lengthy road works on Thorndon Quay.

“Look, it's not going to fix everyone’s problem - we know this,” Whanau said. “Compensation is probably the thing that everyone wants. But that is not something we can offer, so we will continue working with businesses to find a realistic package.”

Under the current plans, disruption to Courtenay Place businesses will extend for nearly three years.

Work around the Cambridge Terrace intersection will take approximately eight months due to the complexity of the area, said the council’s transport and infrastructure manager, Brad Singh.

Revitalisation of the rest of Courtenay Place, which will mean wider footpaths, outdoor dining areas and improved lighting, is expected to start immediately after and take two years to complete.

Key changes coming in this stage include the removal of bus stops in front of the St James Theatre and Reading Cinema Complex, the addition of physically demarcated bike lanes and laying of new, slip-proof pavement.

Problematic water pipes will also be identified and replaced throughout the construction process.

However, the contract for this second stage of work has not yet been signed, leaving the exact start date unknown.

“As it is a current negotiation with a contractor, I would be reluctant to put time frames on it,” Singh said.

Long time coming

For Whanau, the Golden Mile project has been a long time coming. After a tumultuous end to 2024 and a narrow vote to keep the project, she is thrilled to see it going ahead.

“The feedback I’ve been getting, is there are some who don’t like it and some who are excited,” she said. “Many businesses want a city where their employees can come and go easily, where they can easily access public transport, and you know, actually have a thriving hospitality scene.”

Despite a recent poll that showed 87% of Wellingtonians would prefer the council focus on fixing the basics - like pipes and potholes - Whanau is not deterred.

“If you ask anyone in Wellington whether Courtenay Place needs some work, they all say yes. So we have to be brave, we have to be bold, and we have to push this through.”

With inflation and rising construction costs adding to the bill all the time, Whanau is adamant now is the right time to get underway - even if it coincides with an election.

“I know that - because this is going to cause disruption around the election - it might not work out so favourably for me, but that's a sacrifice I am willing to make,“ she said.

However, failure is not something she would resign over.

“I would consider not standing - I don't believe in resigning for that sort of reason. But, look, if the project cannot successfully get through, I would say perhaps my skills are needed elsewhere.”

Businesses will need help

Businesses will need help during this time, said the Wellington Chamber of Commerce chief executive, Simon Arcus, especially when it comes to rent.

“We have been talking to the council throughout this process, to ensure they are aware of the risks of doing something that starves businesses of oxygen and accidentally kills them off,” he said.

“Of all the types of compensation, rent relief is usually most helpful. This is something that worked in Auckland really well.”

In Auckland, the Targeted Hardship Fund was set up in 2021 to help businesses affected by construction of the City Rail Link. The $12 million fund was paid for by both Auckland Council and central government, and could provide up to $100,000 per business per year.

The exact amount was determined by each business’s rent level and hardship suffered.

Arcus said businesses on Wellington’s Courtenay Place were hoping for something similar.

“We understand it is really important to have something targeting the right people with the right criteria. But it is temporarily being tided over that is the really big, important thing.”

No hardship fund

No Targeted Hardship Fund is on the cards for Wellington. The council’s chief economic and engagement officer, Anna Calver, said they asked the government for support in setting up a compensation scheme, but were unsuccessful.

The downtown fund, a targeted rate paid by thousands of Wellington businesses which generated more than $17 million in 2024, also cannot be used to help. This money is used to support initiatives with the Tākina Convention Centre, Te Papa and other visitor attractions, and is not designed for compensation, Calver confirmed.

The only foreseeable financial support could be micro-grants, akin to those offered to Thorndon businesses impacted by cycle way and bus lane construction.

Maud Dubios, owner of Le March Francais on Thorndon Quay, said she would never complain about the $1,500 she received, but it did little to ease her situation.

“I was able to get some vinyl work done that I had wanted to do for a long time, but that amount of money did not help with the customers who are unhappy that they can’t easily access the building,” she said.

Tracy Johnson’s fabric business, the Fine Cloth Company, has taken a hit during the roadworks. She said some people saw the micro-grants as an insult.

“The most difficult part is that people are avoiding the area all together. For a business like ours, which sells tangible products that people want to see and feel, our customers are put off entering the area because all the cones are too confusing.”

Johnson has not applied for a grant. “I just thought, $1,500 might cover 10 days worth of promotion when we have a project that has been going on for well over 18 months.”