14 September 2017
Media: Rotorua Daily Post
Topic: Hemo sculpture
Inquiry
Please see further questions about the sculpture.
1. Why are the construction issues only coming to light now?
2. What specifically has caused the cost to jump from $500k to $570k?
3. How many pledges have you had to cover the remaining $100k?
4. When did council agree to a $120k underwrite? Has council had to pay this?
4a If no, has the council gone over the $150k it originally pledged?
5. Are Te Puia being paid for this? How much? - Has this increased as a result of the delay?
6. Is there a possibility the sculpture could be scrapped?
6a. If yes, how much money would be lost?
Response
In response to your inquiry please attribute the following statement to Rotorua Lakes Council's strategy group manager, Jean-Paul Gaston:
Construction and installation of the detailed design was estimated to cost a total of about $570,000. Based on advice from Council's preferred tenderer that estimate was reduced to $500,000 with the tendered asked to confirm the costs. The preferred tenderer is currently helping Council identify alternative construction options for the sculpture. Both Council and NZ Transport Agency are committed to constructing an iconic sculpture at the southern city gateway. Council has pledged $150,000 to the project from its percent for art budget. It also agreed to a $120,000 underwrite in December, which means it would cover the remaining costs if external funding partners couldn't be found. Te Puia, NZ Transport Agency and Council are financing the project, and two additional pledges have indicated an interest. But, the search for external funding is to get underway once we've worked through the construction challenges. We are disappointed that construction plans are delayed but as mentioned the overseas company has other commitments so we need to look at what we can do to get this project moving forward.
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Media: Rotorua Daily Post
Topic: Developments and CBD
Inquiry
I'm writing a bit of a developments update with new projects popping up around the city.
While talking with [local developer] Ray Cook, he mentioned he was a bit worried about the CBD. He said building costs had blown out so much in the past couple of years it wasn't that feasible to be doing new builds at present because the rents weren't enough. He said it made more sense to go into existing empty buildings.
He said that's why he reckons the council missed an opportunity to woe a good tenant like Kmart to take out a big empty block in the CBD. He reckons once it opens it'll further take foot traffic out of the CBD.
I think it's fair to put his comments to the relevant council person to ask the following:
1. Did the council try to get Kmart into the CBD?
2. Was it a consideration when granting resource consent that it could potentially impact the CBD?
[We] will [also] ask Kmart if they considered the CBD (which we suspect they didn't as they don't usually go into city centres).
Response
You'll need to speak with Kmart about how and why they decided to go to Trade Central and who they may have sought advice from regarding location but see below in response to your inquiry:
From Council's Group Manager Operations, Henry Weston:
We're fortunate in Rotorua that our big box retail areas (Central Mall and Trade Central) are very close to our inner city and the link between Central Mall and the CBD will be further improved as a result of work planned for Amohau Street. Council does at times work with businesses and developers on location options and the District Plan encourages businesses to consider the CBD but ultimately, they decide on their preferred location - within the parameters of the relevant legislation and the District Plan.
