No easy way out of Town Hall bind as more information released

Thursday, 19 October 2023

To pause strengthening work on the Town Hall would cost about $60m, staff told councillors. (File photo)

There was no good news for councillors keen to find a way out of the Town Hall budget blow-out.

At a briefing on Wednesday, the advice from staff was clear: vote to provide more funding next week without delay.

“Time is money on this particular contract,” said Wellington City Council’s chief operating officer James Roberts.

For the first time councillors were presented with alternatives to a budget increase including demolishing the heritage building or indefinitely pausing the project, but staff did not recommend these options.

Two weeks ago the council announced the fourth major cost blow-out for the earthquake strengthening project. Up to $147 million on top of the existing budget of $182m needed to be approved by councillors to keep the project on track, said chief executive Barbara McKerrow and mayor Tory Whanau.

The total cost could be as much as $329m. The date when the Town Hall would be reopened was also pushed back, from 2025 to 2027.

Chief executive Barbara McKerrow told councillors “the horse has bolted, essentially” and delay was not really an option. (File photo)

Councillors felt backed into a corner by the announcement, with only three weeks notice before they had to vote on the increased budget.

Extra funding was required this year for the project to move ahead, but a delay would cost the council as well, Roberts told councillors in the briefing.

Both pausing and deciding to demolish the building were not allowed within current regulations, because the building was coming up to its earthquake strengthening deadline in 2024 and was protected on the city’s heritage list.

The council has already spent $140m on earthquake strengthening the building. If they chose not to go ahead, another $100m would be needed to demolish the building and it could take years. There was no guarantee it would get approval within heritage regulations.

Even just pausing the project would require $60m to make the building safe.

Councillor Rebecca Matthews asked whether a short delay would be possible so councillors could consult the public about the budget increase, but was told even that would increase costs.

McKerrow advised strongly against any delay to the project, saying “the horse has bolted, essentially”.

“The reality is now you are in the middle of a project and the cost is unpalatable but I don’t think it’s really an option for you to delay.”

Councillors were warned that stopping the project also held reputational risks for the city, because it would be seen as a failure.

It could damage the council’s relationship with institutions like the New Zealand Symphony Orchestra and the New Zealand School of Music, who were signed on as tenants for the renovated building.

If the project was paused, there would be no concert venue in the city for some years, as the Michael Fowler Centre would also need to close for seismic work.

The same evening as the councillors were briefed about the difficulties of this heritage project, deputy mayor Laurie Foon and councillor Nīkau Wi Neera spoke at the launch of Wellington Heritage Week.

“A very big topic on our minds this week is Wellington Town Hall,” Foon said. “This doesn't come lightly so I'd really appreciate hearing any views on the in the panel tonight, it might help make our decision next week a little easier.”

The council was not alone in its struggles. Maurice Clark, speaking at the launch as an experienced developer known for restoring heritage buildings, described heritage jobs as “hard yakka”.

The cost to renovate buildings like the Public Trust Hall, where the opening of the heritage festival was held, was “mind-boggling”, he said.