Cost of Canterbury Museum redevelopment increases yet again

Tuesday, 24 February 2026

The Canterbury Museum redevelopment is now expected to cost $261.9m, up from $247m.

The cost to redevelop Canterbury Museum has increased again, this time by $15 million – and local councils and the Government are being asked to pick up the tab.

The museum announced on Tuesday that the project is now expected to cost $261.9m, up from $247m, due to escalating construction costs, inflation and funding delays.

It is now facing a funding shortfall of $91.9m.

When the redevelopment was first announced in 2020, it was expected to cost $195m. It later rose to $205m and then in November 2024 it rose again to $247m.

Redevelopment of Canterbury Museum began in 2023.

The museum board warned last year that costs would increase further if central and local government did not commit an additional $25m each by January this year.

That money did not come through and now central and local government have been formally asked for $32m each, spread over four years.

Christchurch City Council’s contribution would be $26.9m and the remaining $4.8m would be split between Selwyn, Waimakariri and Hurunui district councils.

The remaining shortfall would be met via philanthropists, trusts and grants, wills and via various partnerships, the museum said.

The museum has warned costs could go up by another $7m - and the opening delayed a year - if councils and the Government do not come up with the money soon.

Councillor Sam MacDonald, chair of the city council’s finance and performance committee, described the cost increase as “a significant sum in the current environment.”

A large part of the overun, he said, appeared to be the result of a decision to proceed with underground on-site storage, which “is hard to align with the current position,” he said.

Museum deputy director Sarah Murray said they had considered several storage options, but the basement was the most cost-effective and remained so, even with the increase in project costs.

“… the fit-out will likely need to be downscaled in some way,” MacDonald predicted, citing a preference to fund any further council contribution via the international visitor levy, which he believed should apply “to anyone who is not within the ratepayer catchment.”

A new six-metre deep basement will feature under the new Canterbury Museum building to store its collection of 2.3 million objects.

Central ward city councillor Jake McLellan said the council was working with the museum, “on a plan to address their funding shortfall. However, it’s clear that a contribution from central government will also be required.”

Minister for the South Island, James Meager, who visited the museum site last month said any decision on extra funding would need to be made by cabinet.

“It would be weighed up against other priorities in a tight fiscal environment”

The museum board has already received a $1m donation from an unnamed philanthropist.

The council has previously contributed $59m to the project and the government has given $35m.

The new museum is expected to open in 2029, but could be delayed if public funding is not secured.

Museum board chair David Ayers said consultants reviewed the final cost for the redevelopment last year and found that it needed a higher contingency allowance to give greater confidence that the cost would not be exceeded.

The contingency allowance has increased to $9.8m, the six-month delay adding $5.1m.

Ayers said if the Government and councils did not come through with a commitment to grant the money in the 2026/27 financial year, the costs would increase further.

The Robert McDougall Art Gallery (front) will be incorporated into the new Canterbury Museum.

If the funding had been secured last year, it could have completed the final two stages simultaneously, which would have saved money, Ayers said.

Redevelopment began in 2023 after the museum’s 2.3 million objects were moved to a new temporary base in Hornby.

The work involved demolishing the parts of the museum built in the mid-to-late 20th century, leaving the original 1870s buildings fronting Rolleston Ave.

Four councils also contribute annually to the museum’s day-to-day operation and the museum is also asking them to agree to a 4.2% increase for the 2026/27 year.

For the city council that would be an increase of about $63,000 to $9.7m. The proposed operational contribution from Selwyn would be $917,000, Waimakariri $731,000 and Hurunui $100,000.

Mike Yardley, a Press columnist on civic issues, said the redevelopment increase was “deeply troubling”.

“Neither local or central government have committed to accepting last year's request for a further $50m in public funding, let alone the latest hike to $65m. I'm hopeful that election year should prise out some funding commitments, but the trust board's continual project cost escalations are untenable.”

Yardley said some serious rescoping needs examination, as does the viability of keeping 71 full-time equivalent staff on the payroll.

“Future visitor levies being repaid to the council in exchange for a loan all now seem the only way ahead,” he said.