1 November 2018

Media: The Mud

Topic: Lakefront redevelopment

Enquiry

I have read the items on the web site outlining the project. Looking at the timeline, for example, I just had queries about how the government's $20 million and the council's $20 million will be 1. allocated, and 2. spent.

https://www.rotorualakescouncil.nz/keyprojects/lakefront-development/Pages/Timeline.aspx

"Council has allocated $20 million to the Rotorua Lakefront development and has received matching funds from Central Government's Provincial Growth Fund to enable the project to be completed over the next three years."

If, as the documents say, the project is at the concept stage only, how will the money be paid? I mean by this will the government money be paid in one lot to the council or will it be paid in lots as each of the project components are completed? Or is this like a single grant to the council that will go into a separate fund that will include the $20 million of funding from the council?

Given that the number is put at $40 million for the lakefront development, how has that figure been arrived at? The reason for asking this question is that this is quite a precise number. So, how was that number arrived at, given that the project is at a "concept stage".

The reason for these questions is that such major projects usually work the other way around when call for tenders, for example. Will tenders be called for the work?

Response

The following information was provided:

Discussions re how the funds will be received are being finalised with MBIE and will be by way of incremental payments into a separate project fund as the project progresses.

Quantity surveys of concept design help provide an estimated cost and the cost of recent projects also helps provide an understanding of the true potential construction costs.

Council received a grant from the PGF to develop the business case, which included the above work and which was part of the application for the larger amount.

Detailed design work is now underway.

The work will be staged with tenders to go out for each stage.

The budget for this project is fixed at $40m.

*NOTE: the online information to which The Mud refers is the project page on council's website which is at THIS LINK