Canterbury Museum redevelopment could be paused after $40m cost blowout
Friday, 15 November 2024
Canterbury could be left with an empty museum or ratepayers having to dig deeper after a $40m budget blowout in the building’s redevelopment budget.
The project’s cost has ballooned from $205m to $247m, museum chair David Ayers said on Thursday. The blowout has increased the financial shortfall by just over 20%, from $44.6m to $86.6m.
The reopening has been pushed back six months to 2029. Pausing the redevelopment was a possibility if there was insufficient cash to complete and fit out the interior, Ayers said.
“If there is a delay (to completion), how long could that delay be? We will be trying very, very hard to continue the work into the last stage.”
The museum has awarded the construction contract to local company Leighs Construction.
Ayers said the construction tenders were “well above the museum’s anticipated budget”, but they were not alone in facing price escalations.
“We’re really disappointed with the increase, given our strict cost control to date,” he said.
The four councils responsible for the museum - Christchurch city and Waimakariri, Hurunui and Selwyn districts - were briefed this week.
They, along with the Crown and philanthropists, will be asked to plug the funding shortfall in three equal parts, but the museum has not yet made formal requests.
Acting Christchurch mayor Pauline Cotter said the city council does not have extra cash for the project.
'There's no way that the council can commit to anything at the moment, it would have to be a decision under the long term plan, which is three years away.
“Unless we do something in the meantime like a targeted rate, like with the (Anglican) cathedral,' she said.
Cotter said they will seek detailed information, staff input, and the public's views before deciding what to do.
She hoped the Crown might come to the party. 'It's not like the cathedral, this is a public building and it's well loved by everybody.“
Selwyn mayor Sam Broughton said they had 'not been made aware that they were going to sign a contract that leads to the possibility of an unfinished museum'. The council is writing to the museum board.
'We've some concerns about the decision to proceed when it's going to require extra funding without knowing where the cash is going to come from, and the future possible impact on the community of funding a shortfall.
'We want the community to have a museum that is open and operational.'
Hurunui mayor Marie Black described the cost increase as significant, and said it 'would be felt across the district' as it faces high costs to maintain its local facilities and infrastructure.
'It's disappointing. But the museum is important for the district and for visitors to the region. We have to take a balanced approach.'
Her council is yet to discuss how it would find extra money for the project, she said.
The museum redevelopment has already seen a group of 20th century buildings demolished, and the Robert McDougall Gallery strengthened and dug out underneath.
Leighs Construction will start next year on a new five-storey building, which will wrap around the 1870 and 1877 heritage buildings and connect them to the restored McDougall building.
Museum director Anthony Wright said details of the Leighs contract remain commercially sensitive, but the “vast majority” will be done on a fixed price. Some aspects where the museum and Leighs are jointly seeking cost efficiencies are yet to be settled, he said.
The museum has $160.4m in hand.
Ayers said an extra $3.8m is needed to remove asbestos from the McDougall gallery, and $5m is needed due to unexpected ground conditions. Cost savings of $11m have been found.
Ayers said they have enough committed funding to complete a weathertight, insurable, base-isolated building. The fit-out will be done as a second stage.
“But if we need to pause the project in three years, the building structure and base-isolated basement will be complete and ready for fit-out.”
Wright said the museum is actively working on its fundraising plan.
“We’re still confident that we can raise the extra money to fit out the building and the exhibition spaces.”
The museum has a collection of more than 2.3 million objects, some in storage and some on display off site.
During the closure the museum still has about 90 workers on staff, 73 full-time equivalents and some casual staff. Most are involved in creating new exhibits for the extra space and creating a digital catalogue of exhibits, Wright said.