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ECan spent $1.1m planning a ‘Green Star rated’ building, then scrapped it

Thursday, 13 July 2023

The scaled down development at the Kainga Depot has a budget of $3.7m. $1.1m was spent on plans for a larger Green Star rated building, which was abandoned once the potential cost topped $11m.
The scaled down development at the Kainga Depot has a budget of $3.7m. $1.1m was spent on plans for a larger Green Star rated building, which was abandoned once the potential cost topped $11m.

Environment Canterbury (ECan) scrapped plans for a green “five-star rated” staff building, emergency operations centre and depot after spending more than $1.1 million.

The regional council’s spend included “significant expenditure on architects and various consultants,” though construction never began.

Proposed costs ballooned to more than $11m before being abandoned. A more modest depot is underway and expected to be finished later this year.

ECan, which has its headquarters in Tuam St in central Christchurch, began planning in 2019 for the new development on its Main North Rd, Kainga site, which already houses staff from river works, parks, groundwater and survey departments.

The new, scaled back plan for the approximately 820m² Kainga Depot redevelopment has a budget of $3.7m
The new, scaled back plan for the approximately 820m² Kainga Depot redevelopment has a budget of $3.7m

The initial proposal, according to an excerpt from an Official Information Act (OIA) response, consisted of a building to house existing and future Kainga staff, “future-proofing the capacity of staff at this site”, as well as providing overflow space for city based staff. It was to be built to emergency operations centre standards.

“Due to the complexities around Green Star ratings, there was significant expenditure on architects and various consultants ensuring the plan which was developed would meet the required specifications,” the excerpt said.

The agreed budget was $7.5m, but plans were scaled back after a procurement process in December 2020 came back at a cost of $11m ($8.5m build cost, $1.5m consultancy cost and $1m contingency).

ECan has had the Kainga Depot for decades, according to council material. Sales of adjoining properties and residential rentals in 2016 raised $1.9m towards the redevelopment.
ECan has had the Kainga Depot for decades, according to council material. Sales of adjoining properties and residential rentals in 2016 raised $1.9m towards the redevelopment.

The second procurement process in March 2021, for the reduced project, returned a cost of $11.5m, ECan spokesperson Ross Pringle said.

“During this period, New Zealand, like the rest of the world, was impacted by Covid-19, which subsequently led to a significant increase in building costs and supply delays,” according to the three paragraphs supplied under a previous OIA request.

“The original proposal was halted,” and plans were revised to a “design and build concept for a fit-for-purpose depot development,” with a budget of $3.7m, Pringle said.

That tender, awarded in November 2021, details plans to remove some existing buildings and create new office space to house 70 staff with an open plan office, additional break-out areas, at least two meeting rooms, a staffroom, showers, drying area, lockers and garage space.

Earlier plans for the new building at ECan’s Kainga depot would have provided room for staff overflow from their Tuam St offices (File photo).
Earlier plans for the new building at ECan’s Kainga depot would have provided room for staff overflow from their Tuam St offices (File photo).

The $1.1m was “the total amount spent on the Kainga Depot development to 31 August 2021,” and contained very little overlap with the new project,“ Pringle said.

A number of decisions about the abandoned project were made in public excluded council meetings.

Pringle said as the project was still under way, final decisions about releasing information were yet to be made.

In response to questions from The Press, ECan said the decision to halt and revise the original plan largely came down to cost.

“We now have the Laurie & Wilson building next door to [ECan headquarters] Tuam St and a flexible working environment which includes working from home arrangements, so there isn’t the same need for additional capacity at this site compared with in 2020 - 21 when the original project was scoped,” said Pringle.

As the Tuam St office and the Justice Precinct (which houses the Civil Defence Emergency Management Team, and where an Emergency Coordination Centre would be based in the event of a disaster) are both built in excess of 100% of new building standards (NBS), there had also been “a reconsideration of the need to meet certain specifications as an alternative location in case of emergency,” he said.

Green Star ratings take into account a building’s materials, how it uses energy and water, its access to sustainable transport and its indoor environment.