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Auckland
Development Committee
14 April 2016
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Transform
Manukau High Level Project Plan Urban Regeneration Project
File No.: CP2016/06261
Purpose
1. This paper
outlines the content and seeks the Auckland Development Committee approval of
the High Level Project Plan (HLPP) for Manukau Metropolitan Centre and its
surrounds know as Transform Manukau. Approval of the HLPP will provide
the mandate for Panuku, as the lead agency in Manukau, to progress with
detailed communications/engagement, framework planning and development
realisation processes.
Executive
Summary
2. Transform
Manukau’s vision is for Manukau to become “The thriving heart and soul of
the South”.
3. Panuku
Development Auckland (Panuku) will provide an integrated and holistic set of
strategic responses to the challenges and opportunities this location presents.
To realise the true benefits of urban regeneration this paper seeks the
adoption of the High level Project Plan and through this, the mandate to
dispose of some properties within the Transform project area.
4. Panuku will
develop a Framework Plan for Manukau which will progress and refine the
alignment between parties and entities to confirm an integrated approach to
development that will include contributions to empowering communities, lifting
socio-economic well-being and building quality, people oriented urban
environments collaboratively.
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Recommendation/s
That the Auckland Development
Committee:
a) adopt the attached High Level Project Plan (HLPP)
b) endorse Panuku as the lead Council agency for the Manukau regeneration
project given its status as a Panuku Transform location
c) endorse Panuku, subject to Finance and Performance Committee
approval, to dispose of the five Auckland Council properties within
the Transform project area listed below and referenced in attachment C, to
contribute to achieving the outcomes in the HLPP and with the objective of
achieving urban regeneration, renewal and housing:
i) 2 Clist
Crescent car park (in front of Rainbow’s End) - NA45C/155
ii) 2 Davies
Avenue (Ronwood car park) - CT 49758
iii) 8 Davies
Avenue (car park) - CT NA62D 735
iv) 14 Davies
Avenue (car park) - CT NA25B 679; CT NA62D 740
v) 9 Osterley Way
(car park) - CT NA62D 733
subject to:
1. the
satisfactory conclusion of the required statutory processes
2. agreement with
Auckland Transport on the transport outcomes required for the sites (ii to iv
above)
d) note that
five additional Auckland Council properties within the Transform area are
already cleared for sale and subject to the outcomes of the HLPP and the
Framework Plan and with the objective of achieving urban regeneration,
renewal and housing and are listed below:
i) 655 Great
South Road (Westfield car park)
ii) 20
Barrowcliffe Place (vacant land)
iii) 31-33
Manukau Station Road (Lot 59A and B)
iv) 50 Manukau
Station Road (vacant land next to police station)
v) Sec 1&6,
Manukau Station Road (vacant land opposite MIT)
e) note that
Panuku will consider service properties and community facilities in the
Transform project area that may further contribute to achieving the outcomes
in the HLPP. Panuku will liaise with Council business owners and the Local
Board through the framework planning phase. Panuku will seek further approval
from Council if the proposed contribution of these properties to the HLPP
outcomes, either in whole or in part, directly affects existing or proposed
community facilities/service properties.
f) support
the reinvestment of proceeds of sales of development sites in the Transform
project area, into projects and initiatives that progress the intent of the
HLPP and Framework Plan with all CAPEX based on a business case to be
detailed in a future paper to the Council
g) approves the
operating expenditure budget of $1.9m utilising a reinvestment approach,
subject to approval from the Finance and Performance Committee as part of the
Annual Plan 2016/2017 process, for the following work:
i) The Manukau
Framework Plan
ii) An
Engagement and Communication Plan
iii) An
Implementation Plan
iv) Early place
making and activation
h) note that
Panuku will enter into a more formalised governance arrangement or
partnership with Crown entities and other parties as necessary to provide
leadership and accountability in the implementation of the project.
i) endorse the
planning and development process that underpins the proposed approach as set
out in the HLPP.
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Comments
The Challenge
5. Manukau is a
disconnected regional centre designed with a car based layout and anchored by
large scale facilities. Private sector investors and businesses have had limited
opportunity to contribute to the central area with new uses and activities.
6. There are
limited local residents and ancillary neighbourhood facilities in the central
area. Despite Manukau being at the centre of a high demand and broad growth
area, the central area itself, given that it is surrounded by industry, large
format retail and motorways, combined with poor perceptions of safety and the
lower socio-economic status of the surrounding residential catchment, have
rendered development financially challenging. Recent developments, many led by
the public sector, have lacked overall cohesion. In short the centre has failed
to present a strong identity to the region as a desirable Metropolitan Centre
of scale and significance in which to invest.
The opportunity
7. Manukau has
significant scale and historic status as a City Centre. Together with an
enabling planning framework as the third largest Metropolitan Centre in
Auckland, and significant Council property holdings, means it is well placed to
physically deliver quality regeneration at scale and pace.
8. Council has a
current total land holding of approximately 95ha within the project area.
Approximately 20 ha of this are potentially developable in the immediate and
near term, with a combined current rating assessment land value of
approximately $100m. This value has a wide value range and is conservative as
it assessed from 2013 and is prior to value creation and the transformation
process. Service properties and their potential value, if any, will be
considered through the framework planning phase.
9. Council can
utilise its significant landholdings and facilities to bring about effective
and coherent urban regeneration through disposal, development partnerships, or
optimisation of these properties. Manukau is strongly connected to the
transport network by all modes and is the closest centre to Auckland Airport,
which presents a significant opportunity. Finally, Manukau has infrastructure
that has capacity to deliver on development opportunities that other new growth
areas are struggling to address in a timely manner.
Vision
10. Manukau: The Thriving Heart and Soul of the South
11. Manukau metropolitan centre becomes the thriving heart of our area:
an attractive visitor destination, business centre and place to shop, live,
learn, work and play.
12. A set of
aspirational outcomes and core principles below provide a platform for the key
strategies to transform Manukau and will guide future project initiatives that
will be recommended through the framework planning phase.
Outcomes and benefits of transformation
13. Urban
regeneration of this scale will bring benefits and outcomes that will position
Manukau as a strong, competitive and complementary Metropolitan Centre to the
City Centre. Potential outcomes and benefits include;
a. A colourful,
vibrant, family friendly centre with a local heart, that reflects and
celebrates our diverse cultures
b. A strong,
permanent, residential population which lives, learns and works within the
centre
c. New uses and
activities that will support the centre’s emerging evening and weekend economy
d. Hayman Park and
Puhinui Stream becoming attractive, safe and accessible green lungs
e. Manukau becoming
a thriving visitor destination of choice
f. The centre
being reconnected to the south: its local people, anchors and neighbourhoods
(Maori, Pasifika, Events Centre, Wero and Wiri)
g. A desirable and
innovative place to do business that promotes and stimulates local enterprise
and attracts new investment
h. The involvement
of the local people in the urban regeneration process contributing to new
community benefits and improved socio-economic well-being.
Principles in undertaking
transformation:
14. All aspects of
the project planning, design, engagement and implementation will consider these
principles through each aspect and work programme:
· Governance:
Establish a strong, inclusive and accountable governance structure which
includes community engagement, framework planning, partnering with other parts
of Council and Crown entities
· Transit–oriented development: Guide Manukau Central towards becoming an exemplar Transit
Oriented Development that fully capitalises on the Metropolitan Centre zone
· Market Attractiveness: Change and improve the perception of Manukau by leading the market
in consolidating the centre.
· Integrated & partnership approach: Holistic transformation through coherent and integrated strategies,
projects and outcomes in partnership with the community, organisations and
Crown entities.
· Socio-economic well-being: Contribute to increasing and improving the social and economic
well-being of the local area’s people, businesses and communities to unlock
economic potential and reduce social assistance needs
· Think local: Focus urban regeneration and community development towards
“thinking local” with emphasis on developing a local heart for Manukau
reflected by building to a human scale.
Five strategies to realise the benefits:
15. Panuku will seek
to deliver transformation on targeted projects (including anchor, catalytic and
exemplar projects), through the following five key strategies which will
identify the key moves, actions and initiatives necessary to implement change
and rapid transformation:
a. A people
oriented design and delivery strategy
b. A community
benefits strategy
c. A housing
strategy
d. A Manukau
repositioning strategy
e. A financial
investment with leverage strategy, including development realisation and value
creation.
Value creation:
16. As part of the
framework planning process we will establish the procedure to assess and report
on the creation of value arising from implementation of the Framework Plan.
17. Value creation
will address the baseline values, both commercial and non-financial, of
existing assets and future increases in value at key project milestones. In
addition, estimates of developed project values will be determined for the
Council assets, which will be the subject of realisation and development by the
private sector through the market process. Consideration will also be given to
reporting on value creation in the context of other service assets held by
Council that will benefit from the activities of Panuku.
18. Reporting on
commercial value creation will identify the nexus between the actions of Panuku
and the value implications, and also seek to isolate value effects from broader
issues such as general market movements. In addition to the above, the project
will also seek to report on wider value creation associated with economic and
social factors such as employment creation, housing choice, community safety
and wellbeing etc. This element will be further detailed and assessed as part
of the framework planning and implementation stages of Transform Manukau.
Indicative staging: “Start with the
Heart”, Davies Ave Axis, Puhinui Corridor
The HLPP recommends a high level staging
approach: -
19. First and near
term stage - ‘Start with the Heart’, the centre of Manukau, to leverage off
existing public and private investments, and to take advantage of Council’s
strong, well located property portfolio in close proximity to amenities and
transport options. It is recommended that the short term projects within the
centre be those located along the Davies Avenue axis, and those responding to
current projects such as the bus station and Kotuku House refurbishment. Each
of these projects requires investigation as to their integration within the
wider transformation and alignment with its objectives.
20. During the near
terms stages focus effort over SH20 into Barrowcliffe as an exemplar and
perception-shifting project. This will forge the critical cross motorway link,
and act as a catalyst to further development along the Puhinui Stream corridor
(Te Araroa trail). This second stage will require collaborative planning and
development with Crown entities including Housing New Zealand (HNZ) and the
District Health Board’s (DHB) Super Clinic 49ha site.
21. In parallel,
work with Westfield and the Sports Bowl to refocus efforts north of the centre
will be ongoing. The latter stages of development will then focus on the
Ronwood Avenue /Cavendish Drive area, once market perceptions, planning,
engagement and the readiness of redevelopment of private land becomes more
favourable.
Financial implications of transformation
and investment approach
22. This Transform
project will require significant funding for both operational and capital
works. It has been estimated indicatively at this early pre-framework planning
stage that around $70m worth of public good investment projects will be needed
to realise the necessary anchor, exemplar and catalytic initiatives. Some of
these public investments will be in streetscape upgrades, greenways, stream
restorations and place activation. Other initiatives will be focusing effort on
better integration between current projects and work streams in the area. For
example, the bus station project presents some significant spatial challenges,
which if left un-corrected could erode the quality and intent of
recommendations in this HLPP. Similarly, the Kotuku House refurbishment project
would be optimised and enhanced by considering other integration options beyond
solely a building refit.
23. The proposed
funding strategy to deliver on these public works is the revinvestment of the
proceeds of asset realisation. This approach recognises that the current funds
within the LTP budgets do not include funding for any Transform locations
capital or operating expenditure. The proposal is for Transform Manukau (and
Onehunga as the other Transform location) expenditure to be funded from
reinvestment of proceeds from properties which are disposed within each of
these locations. Any associated group debt and rates impact will need to be
approved by the Finance and Performance Committee.
24. Panuku will
commence the framework, design, engagement and implementation planning along
with early place making which will require a budget of $1.9m to complete. These
internal and external costs will not be recoverable against specific sites. It
is recommended that these costs will be approved as part of the Annual Plan
2016/2017 process, and are seen as part of the reinvestment approach.
Project funding strategy
25. The Transform
Manukau project will require significant funding for both operational and
capital works in the short, medium and long term as outlined by the intent of
the Panuku Transform category as highly custodial locations. The scale of
transformation envisaged cannot be achieved within current budgets and funding
for Transform Manukau will require access to a number of funding sources:
a. The primary
proposed funding source to deliver the range of Transform Manukau projects is
through the reinvestments from proceeds of asset realisation. This proposal
recognises that the current funds within the LTP budgets do not include funding
for any Transform locations capital or operating expenditure. It is proposed
that the Transform Manukau (and Onehunga as the other Transform location)
expenditure is funded from reinvestment of proceeds from the sale of properties
which are disposed within each of these locations.
b. The reinvested
funds from sale proceeds would be used for OPEX associated with preparing the
HLPP and undertaking the subsequent Engagement, Framework and Implementation
Plans.
c. The utilisation
and reprioritisation of existing Council budgets towards delivering the key
strategies and initiatives, such as through the Spatial Priority Area process.
d. Possible access
to funds arising from a partnership approach with government.
26. There are
several possible supplementary OPEX and CAPEX funding options available to
Panuku including the potential to re-apply Council LTP funds, Panuku
Development and Strategic Development Funds, Local Board discretionary funding,
the AT Local Board Capital Fund and the Local Residential Growth Fund subject
to its criteria. All of these will be investigated in order to assist in the
overall funding and financial investment with leverage strategy.
Project related budgets
27. The plan
recommends an operating budget of $1.9m to take the project to the completion
of the implementation and development realisation planning and is broken down
as follows:
Framework Plan - $810,000 (to end of implementation planning, 2016/17 FY)
28. The internal
(including wider Council) contribution in terms of person hours is estimated at
3500 person hours, which equates to approximately $380,000 using internal
charge out rates. The external consultant support required is estimated at
approximately 1720 person hours or $380,000 (based on an average hourly fee of
$220). Additionally, there is estimated to be $50k of fixed/sundry costs such
as for photography, document printing, room hire etc. The total financial cost
to Panuku of the Framework Plan excluding internal resource is $430,000.
Engagement, Communications Plan -
$170,000 (to end of implementation planning, 2016/17 FY)
29. This amount
covers Stakeholder engagement and communications activities during the HLPP
phase and planning for the framework planning phase immediately post Council
sign-off. Specifically the amount includes: the creation of an engagement plan,
iwi engagement, engagement workshops (internal and external), a community
event, communications material and the development of a repositioning strategy.
This amount includes Panuku staff time (approximately 510 hours) and ancillary
consultant fees.
Work by the Strategy team - $90,000 (to
end of implementation planning, 2016/17 FY)
30. The internal
(including wider Council) contribution in terms of person hours is estimated at
350 person hours, which equates to approximately $42,000 using internal charge
out rates. The external consultant support required is estimated at
approximately 180 person hours or $40,000 (based on an average hourly fee of
$220). Additionally, there is estimated to be $8000 for a 5% contingency and
some fixed/sundry costs such as catering, van and room hire, document printing
etc.
31. These funds are
anticipated to be used to procure advice and information on generating targets,
KPI’s and goals to underpin the community, housing, branding and place
strategies. This will support the framework and feasibility planning process.
This budget includes advice on value creation and a contingency for external
advice as needed.
Work by the Development team - $350,000
(to end of implementation planning, 2016/17 FY)
32. Pre-capitalisation
funding of $350,000 is over seven sites and comprises of an estimated 1044
internal council person hours (which equates to $125,000 using internal charge
out rates). External consultant support providing an estimated 944 person hours
or $207,000 (based on an average hourly fee of $220). Additionally, there is
estimated to be 5% contingency $15,000 which includes of fixed/sundry costs
such as for photography, document printing etc.
Early place making - $480,000 (until end
of June 2017)
33. This budget,
which includes 471 internal staff hours, is intended to initiate Panuku’s early
presence in Manukau. It will ensure that the process of transformation is
underway during framework and implementation planning, in the short term as
well as in the medium and long term. The projects and initiatives in this
budget will help to plan, design and initiate place making such as events, art
installations, interactive, creative spaces and an early activity calendar. This
could also include tactical urbanism and “gap filler” projects. However the
majority of the budget would enable the construction of temporary structures to
use in various places and spaces around the central area and allow them to
cater for food, beverage and event/engagement facilities as necessary. This
place making budget will add value by activating and enlivening the bus station
construction works area and provide messaging and signage of the Transform
Manukau vision and objectives. This messaging could contribute to building
excitement and potentially help to activate the empty spaces and reduce the
poor perception of safety and crime.
Background
34. In October 2015,
The Auckland Development committee (ADC) formally endorsed Manukau as one of
nine locations for further investigation and consideration by Panuku.
35. In December 2015, ADC was presented with the priority development
location process and emerging development work programme that included Manukau
as a “Transform” location.
36. A workshop was
held with the Ōtara-Papatoetoe Local Board and Manurewa Local Board chair
on 16 February 2016 where the initial vision and outcomes were presented.
Feedback was supportive of the work to date and appreciative of the fact that
the substantial issues have been identified early on.
37. An iwi and
hapū site visit and two workshops were conducted on 24 February and 15
March to inform the process and product in the HLPP.
38. A workshop was
held with the Auckland Development Committee on the 29 March 2016 where the key
vision, strategies, principles and staging were presented along with an
approach to funding and the initial financial implications of the Transform
Manukau project
39. The Transform
Manukau HLPP was approved by the Panuku Board on 30 March 2016.
40. The purpose of
the HLPP is to establish the context, engagement plans, framework planning
approach and realisation strategy, including the necessary mandate, to enable
Panuku to facilitate the redevelopment of selected Council sites within the
Transform Manukau project area consistent with Panuku and Council strategic
objectives. The key deliverables arising from the HLPP are:
a. An Engagement and Communication Plan
b. A Manukau Framework Plan that will give effect to the HLPP and its
strategic objectives for the regeneration of Manukau
c. An
Implementation Plan (execution) for each site under consideration which will
include the approach to development realisation and value creation which
provides a platform for future implementation and project execution
Strategic and Panuku business context
41. Manukau is at
the centre of significant interagency focus and collaboration through The
Southern Initiative (TSI), its designation as a Spatial Priority Area (SPA) of
Auckland Council, a Panuku Transform location and the pilot focus area for an
emerging workstream know as Manukau Collaborative Development at Scale (CDAS),
a shared Panuku, Council and Crown initiative. The project area is home to
around 6000 residents and 20,000 workers. It has benefited from significant
investment both historically and in more recent time includes the new
state-of-the-art Manukau Institute of Technology (MIT) education campus
building and trenched Manukau train station, the Vodafone Events Centre, the
new Wero White Water project and the planned Manukau bus interchange.
42. Previous
planning for Manukau Central has been extensive. It has long been identified as
a key location for growth and development and is a major
metropolitan/sub-regional centre (a CBD of the south). However it has
underperformed and not realised its potential. It is clear that transformation
will not happen by the market forces, liberal planning regulation or advocacy
alone. A public sector intervention and urban regeneration, renewal and housing
process is required to respond to the range of issues and challenges facing
Manukau central and its surrounding Wiri suburban area to the south which
comprises the main project area.
43. As set out in
the Statement of Intent, Panuku is charged with leading urban transformation
and regeneration, facilitating vibrant development and accommodating growth.
44. The
organisation’s vision is “Shaping Spaces for Aucklanders to love”.
Panuku business plan context
45. Business Plan
objectives, as applied to Manukau are as follows:
a. To facilitate
the high quality urban redevelopment and transformation of Manukau central
b. To co-ordinate
the provision of Council’s infrastructure and other investment in Manukau
c. To facilitate
investment in Manukau through collaboration with the private sector, third
sector, Iwi and government as partners in the urban redevelopment
d. To undertake
framework planning, engagement, place making, activation and development
projects to catalyse and encourage private investment
e. To facilitate quality
redevelopment of under-utilised Council landholdings in Manukau to drive
commercial and strategic value as part of urban transformation
f. To facilitate
housing development and an increase in housing supply and residential choices,
including housing in the affordable spectrum and Housing for Older People,
working with partners, in order to accommodate growth
g. To harness and
incorporate the local community's unique identity, attributes and potential to
create vibrant communities, through engagement and place-making
h. To identify
leadership opportunities to deliver projects that demonstrate affordability,
universal design, sustainability, high quality urban design, place-making,
economic development and value for money
i. To develop
strong, meaningful and productive relationships with Iwi to achieve shared
outcomes in Manukau
j. To ensure
Council properties are managed and maintained and achieve optimised net returns
for the Council group
Panuku corporate
responsibilities in Manukau
46. A Corporate Responsibility
Framework is being developed to articulate the strategic objectives and
aspirations that Panuku is committed to achieving and how these will be
advanced. Panuku is required to strike a balance between commercial and
strategic outcomes and being transparent about non-financial outcomes.
Preliminary aspirations for Manukau are:
a. Affordable
Housing – 10% market or 5% retained in all residential projects as a
minimum, consistent with the requirements of private developers in SHAs
b. Housing
choices – a range of typologies, sizes and price points to suit different
markets
c. Accessible
and sustainable design standards appropriate to the market and with a
specific focus on affordability for the consumer, supporting sustainable
lifestyles and diverse population, including the young, old, disabled and
families. A minimum of 20% accessible units, including all ground floor units.
d. Landscaping that
supports the amenity, biodiversity and environmental objectives of the
framework plan
e. Mixed uses,
where ground floor activation is appropriate and commercially viable
f. Appropriate
density and typology – densities in the centre are supportive of
transit-oriented development
g. Designing
with climate change in mind – such as ensuring shade and shelter, buildings
tolerate extremes of heat, storm water management
h. Seeking
development opportunities with mana whenua, iwi, hapu and other Māori
organisations
i. Environmental
action and green growth, sustainable land development
j. Recognition and
celebration of Māori cultural values and heritage, to anchor and build
on a Māori identity that is Auckland’s point of difference.
Transform
Manukau project area
47. The project area
is illustrated below and covers 600ha. It aligns closely with emerging Council
and community partnerships, work streams and landholdings with the Crown
entities. Attachments B and C provide a more detailed map of property
ownership in the project area and details the ownership of 10 sites in the
central area with immediate and near term potential.
48.
The project area includes the whole Metropolitan Centre zone
(Pink with hatch) which represents the Auckland Council Spatial Priority Area
(SPA) process, the Manukau Sports Bowl site (light green) and the Wiri suburban
neighbourhood to the south (peach) including the large 49ha Manukau Super
Clinic site (grey) controlled by the Counties Manukau District Health Board.
Figure 1 and 2 Project area
for Transform Manukau
Council property summary
49. The Council
portfolio comprises approximately 40 properties covering over 95ha of land and
is shown in yellow above, of which most is made up of open space and reserves,
sports facilities and service uses. An area of approximately 20ha has some
development and optimisation potential in the immediate and near term future;
these properties are all located within the central area. There are other
longer term opportunities that will be explored through the framework planning
phase such as the redevelopment of the Manukau Sports Bowl, remaining
opportunities at the Pacific Events centre and the Council’s core service
accommodation properties of Kotuku House and the Civic. The opportunities can
be summarises as being in three groups:
50. Immediate
potential- vacant land: There is 8.6ha of vacant land in four properties
that are already cleared for sale and present real development potential to
catalyse new development and contribute strongly the outcomes sought in the
HLPP. These properties are scheduled in attachment C.
51. Near term
potential- car park sites: A combined 10.4ha across six car parking sites
including the Westfield car park present near term opportunities to redevelop
these underutilised surface parking properties for a range of both commercial
and non-financial public good outcomes. Four of these sites (1.7ha) are
currently managed by AT and are well located opposite Hayman park and close to
transport and amenities on the Davies Avenue corridor. These four sites present
a clear transformation opportunity for a series of exemplar, perception changing
residential and mixed use development projects. The Clist Crescent car park
(0.43ha) in front of Rainbow’s End similarly presents a great opportunity for
development at the gateway to the central area. The potential transformation
opportunity at the Westfield Shopping Centre car park (8.36ha) is to redefine
and anchor the central heart of Manukau by utilising the car park and its
adjacent property for redevelopment including the potential for mixed use and
residential outcomes.
52. Medium to
long term potential – service properties: Properties such as Kotuku
House, the Manukau Plaza, The Manukau Civic and some minor landscaped open
spaces all present opportunities to reconsider use and efficiency in the
central area. There is potential to optimise and enhance their quality and
range of public service and amenity and consider some commercial uses if
appropriate.
53. Likewise there
are may be some opportunities to enhance and optimise some large open spaces,
sports and events facilities. Hayman Park (10ha), the Puhinui stream (14ha),
the Manukau Sports Bowl (21ha) and the Pacific Events centre (14ha) will be
explored further during the framework planning phase to understand their
potential for both community benefit, enhanced people oriented design or financial
opportunities.
54. There is limited
redevelopment and optimisation potential for the remaining Council landholdings
in the project area which includes Rainbow’s End (7.5ha) with a long term
lease, local open spaces in existing Wiri communities, a stormwater area,
historic reserves and a small cemetery on Manukau Station road. A Housing for
Older Persons (HfOP) site of 0.5ha is within the project area but is subject to
a separate Panuku led assessment project.
Project
considerations
Statutory considerations
55. The Transform
project area includes the entire Metropolitan Centre zone and Manukau Precinct
under the Proposed Auckland Unitary Plan (PAUP) which are enabling zonings
supportive of intensive residential and commercial development. The wider part
of the Transform project area includes some Mixed Housing Suburban, Mixed Use,
General Business, Light Industry, Heavy Industry, open space and Special Use
zones.
56. Statutory
clearance procedures to enable realisation of the development opportunities are
currently underway, including uplifting of three parking designations.
57. The Auckland
Airport noise and height designations provide some particular constraints which
may influence building heights and residential unit designs for the parts of
the project area influenced by these overlays.
58. Some covenants,
leases and easements also apply in the central area which will further
influence the timing of site rationalisation.
Market dynamics and
demand
59. The project area
is a significant commercial and service centre, with a concentration of
industrial activities in the southwest, health care activities in the south and
emerging apartment developments largely around the fringes of the centre.
Housing stock is dominated by large-household detached dwellings, although
demand in the area is shifting to larger terrace housing or smaller apartments
due to increasing house prices, shortage of developable residential land, and
strengthening student and worker population base. Currently, there are six
apartment projects active within and around the area, which will create 404
mostly studio units by 2017. Two of these, Lakewood Court and Lakewood Plaza,
are located within the project area, creating a total of 82 studio and 151
2-bedroom apartments. Future demand through to 2043 is expected to be around
1500 new dwellings within the project area, 500 within the centre. The table
below summarises the population and dwelling counts in 2013 and 2043 for the
centre and the scope area as:
60.
Manukau Centre Project Area
Current population (2013) 621 5,865
Current dwellings 285 1734
Forecast population (2043) 2344 9548
Forecast dwellings 772 3316
61. Two of the key
strategies, outlined later in this report involve improving the competitive and
complementary position of the central area in the housing market by catalysing
housing through a repositioning strategy and a people oriented design and
delivery strategy. Manukau, in order to achieve its aspirations will requires a
housing market shift from the traditional family dwelling on a free standing
site to promoting more urban living options. Panuku can lead the market by
delivering and encouraging new apartment type
developments in the centre by leveraging recent transport investments,
proximity to amenities such as parks and supermarkets to deliver attractive,
intensive living options with a range of price points, sizes and demographics.
Related to these two key strategies will be initiatives to introduce this higher
density residential living into the central area by using existing
under-utilised sites such as at grade car parks.
62. The market
context for Manukau indicates significant market challenges to delivering
successful apartment development initiatives. Apartment typologies are by their
nature costly and higher risk and this creates financial feasibility
challenges. The Implementation Plan, which includes development realisation and
value creation, will need to address this critical market dynamic and the
manner in which Panuku seeks to enable residential apartment delivery in
Manukau. This will include managing the risk exposure to both Panuku and
private sector delivery partners. We will need to assess where Panuku can most
effectively act within the continuum between developable reality and the
intended aspirational outcomes of the plan.
63. The commercial
market in Manukau is strong, supported by an industrial base and growing
residential, worker and student demand. The vacancy rates on retail and office
space will remain low due to limited supply and the strong pull factor of
Manukau’s strategic location. Demand for investment in this market is expected
to increase due to current favourable business conditions – declining yields,
increasing values, low interest rates and low vacancy rates; and growing demand
due to future developments. The key sectors for commercial activities that
could be integrated into the central area are core retail, medical services,
creative services and ICT, real estate and construction services.
Development
realisation approach
64. The
development realisation approach will articulate the approach to the delivery
on the key strategies through the use of Council property and the roles of
Panuku and its development partners in the process.
65. The
development realisation will be developed through the framework planning and
implementation phases of Transform Manukau and will comprise the following:
· Outcomes
to be delivered from realisation activity consistent with the HLPP and
Framework Plan
· Roles of
parties – Panuku, private sector etc.
· High-level
programme
· A
financial investment with leverage strategy to address the challenging market
dynamics and the managed risk approach to enabling the delivery of the outcomes
· Articulation
of the wider benefits of realisation and subsequent development activity
undertaken by the market.
66. While
more details are to follow in terms of the realisation strategy the following
are some early staging and site specific moves: -
The development will
start with a “focus on the heart”, being the central area of Manukau
The consequential
initial development opportunities in the centre are along the “Davies Avenue amenity
axis” focussed initially on the following sites: -
a. 2
and 8 Davies Avenue (Ronwood car park) – This combined 4200sqm site, once
approved by Auckland Transport for use and the parking designation lifted,
represent a key residential opportunity to initiate perception changing and
exemplar development opposite Hayman Park and the planning destination
playground to deliver a radically different urban living option for Manukau.
b. 14
Davies Avenue – This large 10,000sqm site, has a wide range of opportunities
that will be explored and refined during the framework planning phase
c. Hayman
Park – This is a critical amenity site that requires upgrading to make it
attractive and safe – progress from the currently planned stage 1 playground to
add additional amenity to add value to development sites fronting the park.
d. 31-33
Manukau Station Road - this is 7000sqm of land adjacent to the planned new
bus station and is cleared for sale. The site could provide an early mover as a
mixed use, transit oriented development through a market process.
e. Section
1 & 6 Manukau Station Road– this is 18,000sqm of land which lies on the
corner of Davies and Manukau Station Road, is vacant and cleared for sale.
f. 50
Manukau Station Road – this 9,700sqm site is cleared for sale.
g. 20
Barrowcliffe Place – this is a 5.1ha vacant site adjacent to SH20 and the
Puhinui Stream. It is recommended that this site be developed as an exemplar
and perception-shifting project. This will forge the critical cross motorway
link, and act as a catalyst to further development along the Puhinui Stream
corridor (Te Araroa national walking trail). The site is cleared for sale and
is currently going through consent for the development of super-lots.
67. It
is noted that Panuku will deliver both commercial and non-financial strategic
outcomes in its projects, particularly within the Transform locations, such as
Manukau. Panuku needs to be adept at articulating its objectives for a given
site, and why certain directions are to be taken and will develop tools to
enable both description and valuation of the proposed activities.
68. The concept of ‘value bridges’ is one such tool.
These are simply the unpacking of the differences in project value under one
scenario as compared to another. For example, value of a project with or
without design and sustainability standards in excess of regulatory baselines,
or with or without a requirement to build adjoining public space. Such
exercises typically require relatively detailed revenue and cost data, and, as
such, cannot generally be calculated until later stages of a project
Value
creation
69. As part of the
Framework Planning process the procedure to assess and report on the creation
of value arising from implementation of the Framework Plan will be established.
70. Value creation
will address the following commercial elements: -
a. Baseline values
of existing assets, or some other appropriate measure and an assessment of
future increases in value at key project milestones.
b. Estimates of
developed project values for the Council assets that will be the subject of
realisation and development by the private sector through the market process.
c. Consideration
will be given to reporting on value creation in the context of other service
assets held by Council that will benefit from the activities of Panuku.
71. Reporting on
commercial value creation will identify the nexus between the actions of Panuku
and the value implications and also seek to isolate value affects from broader
issues such as general market movements.
72. In addition to
the above, the project will also seek to report on wider value creation
associated with economic and social factors such as employment creation,
housing choice, community safety, wellbeing etc. This element will be further
detailed and assessed as part of the Framework Planning and implementation
stages of Transform Manukau and in collaboration with Crown entities to ensure
a minimum cross over and overlap with their core service business and social
programmes.
Commercial Value
Creation
73. A desktop
assessment of the baseline existing rating assessment land values has been
undertaken for the 10 properties with immediate and near term potential and
have an estimated conservative value of $100m. This value has a wide value
range and is conservative as it assessed from 2013 and is prior to value
creation and the transformation process. This is scheduled in attachment C.
74. The subsequent
framework and implementation planning will establish the opportunities these
properties and the others potentially offer in contributing to the
implementation of the key strategies and initiatives for Manukau. This will
establish the basis for the submission of detailed business cases to the Panuku
Board and Auckland Development Committee as necessary in the future.
Non - financial Value Creation
75. The framework
planning phase will establish a number of key indicators and a baseline for
these indicators that will enable the broader benefits of Transform Manukau to
be monitored and reported on at key milestones of the project.
Consideration
Stakeholder views and engagement approach
76. Panuku is
committed to ensuring a place-led approach to engagement in Manukau. We are
working collaboratively with Central Government and Local Boards, making sure that
Ōtara-Papatoetoe and Manurewa members are inclusively engaged where
appropriate. An effective relationship with Maori is a cornerstone for this
project. In addition to the established monthly forum we are now rolling out a
localised work programme, including regular workshops, site visits, individual
meetings and design sessions specifically for Manukau. Lastly we are forming
essential relationships with community stakeholders.
77. A number of
baseline engagement tools/activities have been set up for the Manukau project,
including a cross Council Engagement Working Group, Monthly Project Meetings
with Local Board members and Ward Councillors. We are working with
Ōtara-Papatoetoe Local Board to agree a Terms of Reference Agreement that
sets out, at a high-level, how we will work together. A Place-Led Stakeholder
Engagement & Communications Plan is being developed and we are exploring
the idea of setting up a “Town Team” with the Local Board.
Local
Board views and implications
78. Panuku has
engaged early and communicated regularly with the Ōtara-Papatoetoe Local
Board during the priority location selection process and the preparation of the
HLPP, which was work-shopped with the Local Board in February. Feedback was
supportive of the work to date and is appreciative of the fact that the
substantial issues have been identified early on.
79. The approach
towards local board engagement on this project is collaborative and includes a
close relationship between Panuku, Ōtara-Papatoetoe and Manurewa Local
Boards.
80. Collaboration of
the kind Panuku is aiming for will require a close partnership between the
public, private and community sectors across key platforms to achieve an
integrated strategy. To this end a number of base-line engagement measures are
already in place between Panuku and the Local Boards to ensure a close working
relationship develops in the critical early stages of the planning phase.
81. The Ōtara-Papatoetoe
and Manurewa Local Boards strongly support Manukau for regenerative urban
renewal within the Panuku work programme and more broadly as a Spatial Priority
Area.
82. Other issues
that Panuku will consider in conjunction with the Boards are: effective
redevelopment of Hayman Park, facilitating a streamlined advocacy path
regarding Te Papa, ensuring there is an element of affordable housing in the
mix, consideration of a quality athletic park and generally pedestrian friendly
quality urban built form.
83. Of particular
significance to the Boards is that green open space, sufficient for the needs
of future residents, workforce and visitors are given adequate consideration
during the framework planning phase.
Māori
impact statement
84. Whatungarongaro
te tangata, toitū te whenua. Panuku is a steward and developer of land on
behalf of the Auckland Council and the population of Tāmaki Makaurau.
Tāmaki Makaurau mana whenua are the indigenous Māori population and acknowledged
kaitiaki of the land. Panuku acknowledges through the principles of Te Tiriti o
Waitangi and the importance of land to Māori, that our particular
relationship with these 19 iwi is therefore one of partnership in management
and development of this essential element.
85. Within this
context, in October 2016 the Panuku Board committed to a collaborative
partnership approach to relationships with the mana whenua, mataawaka and urban
Māori of Tāmaki Makaurau. Through deepening these relationships Panuku
has the potential to materially uplift our contribution to Māori outcomes
across social, cultural and economic wellbeing.
Local Context
86. There are 11 iwi
authorities with mana whenua interests in the broader Ōtara-Papatoetoe
Local Board area.
87. Panuku has been
engaging with mana whenua through our regular monthly Forum throughout
development of the Panuku work programme; early conversations on the Transform
Manukau project have been part of this work.
88. More detailed
conversations about planning for development at Manukau have been had through a
site tour on 24 February, and follow up early planning session on 15 March.
89. Through these
meetings we have begun gathering information on interests and aspirations to
carry through into the Framework Planning phase of the project. Early notes are
covered at high level in the HLPP and referenced in full in attachment A
90. We are now
working with mana whenua to shape up a structured work programme to coordinate
mana whenua interests and input into the framework planning phase. The
following activities are anticipated to be undertaken during the framework
planning phase for Transform Manukau:
91. Work in
partnership with mana whenua kaitiaki officers towards best care for land and
people in our development planning and implementation at Manukau. This work is
understood to enable protection of waahi tapu and the optimum health of the
mauri (life force) of the natural environment.
92. Environmental
management recommendations will be incorporated into development planning.
93. Application of
the Te Aranga Design Principles in collaboration with mana whenua to capture
and express broader interests through the built form and place-making and
place-activation activities as the project develops.
94. Cultural Values
Assessments if appropriate/requested.
95. Exploration of
development partnership opportunities.
96. We will engage
with the local Māori population within the scope of our collaborative
community engagement processes.
Implementation
Next
steps towards implementation
Framework planning
97. The described
vision, outcomes, principles and strategies will drive the framework planning,
engagement and implementation phases following the approval of the HLPP. It is
through these phases that the details of each key move, site realisation and
related initiatives will be defined and the implementation approach confirmed.
98. The detail
around the framework planning process is set out in the HLPP (attachment A).
The Manukau Framework Plan is to be delivered mid-2016; it will function as the
non-statutory guiding document for Manukau that details the delivery of the
HLPP outcomes over a 20 year period.
Engagement and communications planning
99. A detailed
engagement and communications planning process and resulting programme will be
informed by the process and information generated through the framework
planning phase
100. The project has
the following estimated milestones relating to the key phases:
|
Transform Project Phase
|
Tasks
|
Estimated timing
|
|
Framework Plan ; Panuku Board, ADC and Local Board
Workshops
|
Progress and prepare The Manukau Framework Plan
documents components for review and input
|
May 2016
|
|
Framework Plan: Final draft for approvals
|
Complete full suite of information, text and
diagrams to final draft stage
|
July 2016
|
|
Engagement Plan: Monthly project update
meetings with the Ōtara-Papatoetoe and Manurewa Local Boards
|
Meetings, workshops, communications
|
From April and ongoing
|
|
Engagement Plan: Engagement Terms of
Reference agreed with the Local Boards
|
Meeting
|
May-June (TBC)
|
|
Engagement Plan: Communications and
Engagement Plan developed for the Execution Phase
|
Prepare text and image documents
|
May onwards
|
|
Engagement Plan: Panuku Board approval of
Framework Plan
|
Finalise documents
|
July 2016
|
|
Implementation plan: Programme development
|
Execution process
|
September 2016
|
|
Implementation Plan: Project feasibilities/ costings
|
Site by site
|
April 2017
|
|
Implementation Plan: Project go to market documents
|
Includes reference designs, guiding documents and
investment memorandum
|
June / July 2017
|
Estimated
approvals programme
|
Approval
|
Authority
|
Estimated timing
|
|
HLPP report and recommendations
|
Panuku Board
|
30 March
|
|
HLPP report and recommendations
|
ADC
|
14 April
|
|
Budget approval as part of 2016/2017 Annual Plan
|
F&P
|
13 May
|
|
Completion and adoption of Framework Plan
|
Panuku Board
|
July/August 2016
|
|
Completion of Implementation Plan
|
Panuku
|
July/August 2016
|
|
Completion of Engagement and Comms Plan
|
Panuku
|
July/August 2016
|
|
Engagement with Crown
|
Panuku /Crown
|
Ongoing through 2016
|
Attachments
|
No.
|
Title
|
Page
|
|
aView
|
Draft High Level Project Plan: Transform Manukau
Note: this
attachment has been prepared as a detailed summary of Panuku’s plans. This
information will be reformatted into a booklet with images and graphics to
assist with communications and engagement with local communities.
|
23
|
|
bView
|
Transform Project Area, landholdings of Council and
Crown Entities
|
59
|
|
cView
|
Schedule key of properties in transform area
|
61
|
Signatories
|
Author
|
Richard Davison – Senior Project
Planning Leader – Panuku Development Auckland
|
|
Authorisers
|
Allan McGregor – Manager Strategic Planning – Panuku
Development Auckland
David Rankin – Director Strategy & Engagement –
Panuku Development Auckland
Jim Quinn - Chief of Strategy
|
