Councillors asked to approve $29.2m budget for Theatre Royal

Saturday, 3 May 2025

The Timaru District Council shared new drawings for the plan to redevelop Timaru's Theatre Royal at a public workshop on April 29.

Just days after being told the Theatre Royal redevelopment would cost about $23.4 million, councillors will be asked sign off a $29.2m budget and agree to build a new museum at the same time.

A report, written by consultant Paul Haggath, of Team Projects Ltd, and the council’s property projects officer, Matt Sisson, recommends councillors approve the Theatre Royal and museum development project to be built at the same time with a total budget of $47.2m.

That report, which will be tabled at next week’s council meeting, shows the budget comprises $29.2m for the theatre and $15m for the museum, plus $3m for a museum fitout which is to be raised through fundraising.

At a public council workshop on Tuesday, councillors were told the estimated cost of the theatre redevelopment had dropped by about $7m to $23.4m.

Councillors were told that reduced figure did not include any contingency fund, but did include aspects which could be removed to further reduce costs. Those included a $2.9m plan to allow for future hospitality ventures at the site.

Councillor Stacey Scott asked for further cost saving measures to be looked at for the project during the workshop on Tuesday.

Haggath also told them the $23.4m plan had “reasonably generous allowances … for the new build areas”.

The revelation of the $7m reduction in costs prompted councillor Stacey Scott to question the need for any further approval, pointing out councillors had delegated authority to council chief executive Nigel Trainor to spend up to $24m for the first phase of the work back in October.

“He can get cracking, game over,” Scott said, drawing a round of applause from members of the community in attendance.

Timaru District Council chief executive, Nigel Trainor, during the public workshop on Tuesday afternoon.

During the workshop, Trainor informed councillors of an offer made by Gary Rooney, whose company recently purchased properties opposite the Theatre Royal, to redevelop the Majestic Theatre as a community theatre.

“It’s in its very infancy — the offer was to potentially refit the Majestic as our theatre, instead of the Theatre Royal and potentially that person may do that themselves and donate to the community,’’ Trainor said.

Councillors spent some time discussing the merits of that offer, with the overall sentiment that it be further explored but work continue on the already signed-off theatre, and the museum development.

Paul Haggath, of Team Projects Ltd, right, addresses councillors during the public workshop on Tuesday, with Timaru District Council group manager environmental services Paul Cooper.

They also requested that further cost saving measures be looked at with Scott questioning the need for “two function rooms and two bars”.

The report in Tuesday’s agenda explained the budget, putting the estimated cost of the theatre refurbishment at $25.8m, with a 12% contingency fund of $3.4m which was lower than the 18-20% recommended for a “project of this nature”.

“The project team has identified $2.5m of targeted value engineering savings, largely through ensuring that elements are not over-specified.

“This revises the target cost for the theatre to $23.4m, with a contingency of $5.9m, or 20%.”

It also confirmed a tender process had been completed to select preferred suppliers for architectural, structural, civil, mechanical, electrical and plumbing (MEP) and fire services.

“Value engineering workshops are to be held with the design team over coming weeks to identify and realise potential savings.”

Areas to be targeted for savings include $500,000 through simplified structural solutions, theatre equipment which had previously been specified as high-end with a $2.5m price tag and a simplified heating and ventilation system, now the theatre and museum were not being joined.

The report also confirmed that the $11.6m offered by the Government, as part of its “shovel ready” projects fund, was still available but only if the museum was built at the same time.

“… a revised schedule of milestones has been agreed with MBIE to reflect the revised delivery programme.

“The MBIE funding is contingent on a commitment to construct the museum as well as the theatre, with coinciding completion dates.”

It said an operational plan for the theatre was being updated and would also consider operating models, including the formation of a trust to manage the theatre.

The report gave three options, the first being the preferred option of proceeding based on the design with $29.2m for the theatre and $15m for the museum plus the $3m to be fundraised.

For the second option, construction of the museum would be deferred until after the theatre, potentially jeopardising the MBIE funding and resulting in increased construction costs.

For the third option, the Theatre Royal and lower laneway would be constructed, with the museum and upper laneway deferred with similar risks as option two, and a “reduced effectiveness of the laneway as a public space”.

The council meeting would be held from 2pm on May 6.