23 September 2020
Media: Local Democracy Reporter
Topic: Council applications for 'shovel-ready' funding
Enquiry
I understand council representatives from around the country have gathered in Wellington for a hui and one of the agenda items for discussion is how to manage shovel-ready projects.
I was wondering if a Rotorua Lakes Council representative (perhaps Jocelyn? Or maybe Stavros?) is attending and if so, what came out of the discussion and what are the unique challenges for Rotorua in managing shovel-ready projects?
Could I please also have an update on where the council is at with shovel ready projects - how many have been accepted now, and where in the process are the rest / when does the council expect to get the green (or red) light on those projects?
Response
The following information was provided:
The following can be attributed to Strategy Group Manager Jean-Paul Gaston:
Regarding the funding applications to the CIP submitted by RLC:
Application for funding for additional Te Ngae Rd upgrades and infrastructure to support housing development was successful, as you will be aware. This funding ($55m) was announced in July (see HERE on Council's website and see below re general info about what this work will involve).
The following update re the above was included in the Ops report for the Operations & Monitoring Committee meeting of Sept 3. See p21 of the agenda (HERE) which included the following update:
NZTA is progressing the finalisation of the Detail[ed] Business Case for stage 2 improvements on Te Ngae Road. This is the section of the corridor from Iles Road to the airport. This work is essential for enabling RLC's housing objectives and a multi-party team is working on the options for staging. With the CIP funding recently announced for this area ($55m) it has been agreed with NZTA that approximately $35m will be assigned to the road corridor SH30, approx. $5m for local road improvements and $15m for bulk stormwater improvements to enable housing. We are working towards implementation detail work.
You will also be aware the joint TPK/RLC application for funding for improvements at Kaingaroa Village was also successful and will receive $5m (as reported by the Daily Post/Herald HERE).
Council is in discussions with TPK and we will be working with the community to develop and deliver the plan for this work.
Regarding the other applications submitted by RLC: Confirmation has now been received that this funding pool has now been fully allocated. Nothing further was allocated to Rotorua, however Council will continue to explore opportunities and options for external funding opportunities to assist with projects and initiatives for our community.
See below, general information about the RLC-submitted projects that have received funding (please note this info is summarised from what was submitted to CIP earlier this year):
Unlocking urban land development package
This submission seeks funding for roading and stormwater infrastructure to remove barriers to housing and industrial development and will help to facilitate the development of Maori land, provide housing, and generate short and long term employment.
Rotorua has a current estimated housing shortfall of at least 1500 to 1750 and a shortage of available industrial land.
This submission proposes SH30 upgrades (estimated $15m-20m) of four intersections at Wharenui Rd, Brent Rd, Basley Rd and airport/Eastgate and stormwater infrastructure (estimated $5-10m plus)
This project is currently unfunded but has been recognised by the Rotorua Housing Strategy - Te Tāwharautanga ki - Rotorua Establishment Leadership Group (ELG) as a priority for Central Government intervention.
These works would have the potential to create hundreds of jobs through road and infrastructure construction, leading into housing and industrial construction and then employment through businesses sited on new industrial land.
Kaingaroa Village developments
A joint submission with Te Puni Kokiri: This project will accelerate implementation of the Kaingaroa Village Community Development plan by providing capital funding to construct and install necessary infrastructure and facilities for community use including: a new water bore and underground infrastructure; upgraded roading; new streetlights; new parks and playgrounds; refurbished community facilities including the Village Council buildings, marae, school, parks and reserves and Village Hall.
Planning and design work has begun for this project, however, construction is not yet underway due to not being able to secure funding.
The work will create an estimated 100 jobs during the construction phase, 20 ongoing, and various opportunities for local small businesses.
Funding of $4.9m is sought from CIP for the project (total cost $14m)
Re last week's meeting in Wellington (for your info rather than for quoting or attributing to JP - please get confirmation via Wellington): our understanding is that last week's meeting in Wellington related to announcement of the final tranche of funding so RLC was not involved. As above, our funding allocations from the shovel-ready funding through CIP were announced in July.