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Governing Body
23 November
2017
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Consideration of America's Cup 2021 location,
infrastructure and funding
File No.: CP2017/22519
Purpose
1. To
receive the technical analysis on location options and to agree the framework
for negotiations with the Crown and Emirates Team New Zealand.
Executive
summary
2. The America’s Cup was won by Emirates Team New Zealand (ETNZ)
on the 27th of June 2017. Early conversations between Auckland
Council (AC) and Government officials started in July in relation to hosting
the 36th America’s Cup (AC36) event in Auckland. Panuku Development
Auckland (Panuku) was appointed by the Chief Executive to be the lead agency to
develop a process and provide a recommendation on a potential location for the
team bases and village overlay. Technical work around location options
started in earnest in August 2017.
3. The
material in this report has been developed in a compressed timeframe, however
Panuku have operated within the context established in Auckland Council
strategies and work programmes. These include developing proposals that are
consistent with previously approved masterplans, including the City Centre
Masterplan and Waterfront Plan[1].
4. The
report outlines the key infrastructure works required in the downtown
waterfront to enable a world-class America’s Cup event. Auckland must
ready itself to meet the anticipated arrival dates of syndicates mid-to-late
2019. Any delay in this timeframe will have impacts on the ability to
design, consent, procure and construct infrastructure in time for the arrival
of the syndicates in 2019. ETNZ has stated a strong preference to hold the
event in Auckland, but reserves the right to hold the event in Italy or
elsewhere in New Zealand if suitable infrastructure is not available in
Auckland.
5. Key
stakeholders have been involved as much as possible as this technical work has
progressed. Engagement with Mana Whenua has begun and has canvassed location
considerations and opportunities and the consent approach. The
opportunity to host the America’s Cup will be welcomed generally by
Aucklanders for the vibrancy and excitement it brings, the chance to back New
Zealand’s team at home and the boost it will give New Zealand’s
economy. It is however acknowledged that a significant cost attaches to
building infrastructure for the event. Aucklanders will want the expenditure to
result in a positive legacy in terms of future use of the facilities and for it
to be compatible with plans for our waterfront.
6. This
report and detailed attachment describes the technical work that has been
undertaken to develop and review the options for team base locations,
indicative costs and associated event infrastructure. This work has been
overseen by a joint executive steering group consisting of the Crown and
Auckland Council and co-ordinated within the council family by the city centre
and waterfront executive group which includes Auckland Council, Auckland
Transport, Panuku, ATEED and Ports of Auckland. This group has sought to ensure
alignment with waterfront and city centre plans previously approved by this
Council, development of a workable programme and budget requirements.
7. A framework was developed to ensure a robust and thorough review of
the critical elements essential to delivering a successful AC36. It
should be noted that assumptions made continue to evolve as additional
information is acquired. The visuals in the material presented are diagrams
that illustrate the functional requirements used to compare options against
each other to determine the location that is able to:
· Be fit
for purpose and deliver on the event requirements for AC36 (eight syndicate
bases)
· Be
consented and constructed by mid - late 2019
· Best
deliver on the strategic plans for Auckland’s waterfront
· Offer the best opportunity for legacy for Auckland and New Zealand.
8. Indicative
work to date has shown that, based on the medium scenario (8 syndicates
participating), that the value add to the economy of hosting the event would be
a total of $763m to New Zealand ($699m value add in Auckland and $94m across
the rest of NZ).
9. Auckland
Council, the Crown and Emirates Team New Zealand are the key partners in
hosting the event in 2021. The Mayor has commenced discussions with
Emirates Team New Zealand, the Crown and community groups. On the basis
of these discussions, this report recommends that the Mayor and Auckland
Council’s Chief Executive negotiate on the basis of three options - a
cluster of bases on Halsey Wharf Extension/Hobson Wharf/Wynyard Wharf East, a
cluster of bases on Western and Eastern Wynyard Wharf and single bases on Halsey
Wharf and the Halsey Wharf Extension option. The Mayor and Chief
Executive will report back to the 14 December 2017 Governing Body meeting for a
decision on the location and funding arrangements.
10. The report focusses on an assessment of the Halsey Wharf Extension/Hobson
Wharf/Wynyard Wharf East option and the Halsey Wharf Extension option.
Staff will reconsider the Western and Eastern Wynyard Wharf and Halsey Wharf
option and table advice at the meeting on Thursday.
11. In
relation to the cost of delivering the other two options and event overlay, it
is expected to be approximately $129-$169 million (depending on which option is
chosen). Both locations will have impact on business as usual, including
current commercial tenants and additional costs have been included for the
relocation of business activity and supporting infrastructure (possible decant
area in Wynyard west). At this stage the additional costs for relocation
in either option could be up to $18m, increasing the potential final cost to
between $147-$187m. These costs are significant and are currently unbudgeted by
Auckland Council and Government.
12. In
addition to the infrastructure and event overlay directly required for the
Americas Cup village and bases there is associated work required in the
downtown precinct. This will ensure both the AC36 and APEC events in 2021 are
delivered to the world class level expected. The investment for this associated
work is approximately $220 million. Of this, $130 million is funded but needs
to be re-phased and $90 million of additional funding to be allocated through
the Long-term Plan 2018-2028.
13. Once
the location and funding is approved, activity will focus on the resource
consent application, stakeholder engagement, detailed design, procurement and implementation.
For the resource consent application, which will be
publicly notified, specific attention will be paid to issues such as
environmental impact and effects, navigational safety urban design and visual
impacts. The new pieces of infrastructure need to be an appropriate fit
within Wynyard Quarter and to be delivered to the high standards that the
Council and public have come to expect in this area of the waterfront.
14. Activity is also underway on the legal and commercial implications
of a new an unexpected development in the Wynyard Quarter, some of which still
operates as light industrial uses, including the bulk fuel industry, concrete
batching and marine servicing.
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Recommendation/s
That the Governing Body:
a) support
Emirates Team New Zealand to host the America’s Cup in Auckland in 2021
b) approve
the following three options as a basis for continued negotiation with the
Crown and Emirates Team New Zealand (noting that these are the current
preferences of the Government, Emirates Team New Zealand and community
groups):
i) cluster
of bases on Halsey Wharf, Hobson Wharf and Wynyard Wharf East
ii) cluster
of bases on the Western and Eastern side of Wynyard Wharf and Site 18
iii) Halsey
Wharf extension
c) express
a preference for option b) i) in discussions with the Crown and Emirates Team
New Zealand
d) note
that the Auckland Council, the Crown and private sector investors will need
to contribute financially to the infrastructure required for the
America’s Cup in Auckland in 2021
e) delegate
to the Mayor and the Auckland Council Chief Executive the authority to
undertake negotiations with the Crown, Emirates Team New Zealand and private
investors on the funding, location and infrastructure required to host the
America’s Cup in Auckland in 2021
f) request that the Mayor and the Auckland Council Chief Executive
report back to the 14 December 2017 Governing Body meeting for a decision on
funding, location and infrastructure as per the negotiation parameters in b)
c) and d) above
g) note
that council decisions, including on funding, will be needed on associated
city centre infrastructure that is critical to the success of the
America’s Cup
h) agree
to use the single hearing process through direct referral to the Environment
Court, available under the Resource Management Act 1991, in order to consent
and deliver the infrastructure required
i) refer this report and decisions to Cabinet to inform their
decisions
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Comments
The 36th
America’s Cup
15. Emirates Team New Zealand’s (ETNZ) victory at the 35th
America’s Cup in Bermuda in June 2017 means that, together with the
Challenger of Record, they decide the format and location of the 36th
America’s Cup (AC36). ETNZ has stated a strong preference to hold the
event in Auckland, but reserves the right to hold the event in Italy or
elsewhere in New Zealand if suitable infrastructure is not available. The
deadline for a final announcement on the location is 31 August 2018.
However, decisions on design and consenting of any infrastructure required to
host the event must begin now.
16. The
America’s Cup was last held in New Zealand in 2003. The 2000 and 2003
events were the stimulus for the transformation of the Viaduct Harbour and the
Wynyard Quarter. Reports show that from these events the value add to the
economy was calculated as being:
· $495 to NZ and $397m to Auckland (adjusted) for the 2000 event
· $529m to NZ and $450m to Auckland for the 2003 event
17. Whilst
the main AC36 races (Challenger and Cup series) are likely to be held over
January to March 2021 for Auckland, the race series starts in December
2020. Syndicates will want to be set up a year in advance, which means
the date for delivering infrastructure to host the team bases is summer 2019.
18. There are challenges with the delivery under this tight timeframe,
but the rewards for the communities of Auckland and New Zealand are expected to
be significant. The AC36 event, like others before it, provides an opportunity
to inspire, involve and innovate. All parties involved in the conversations
to date have focussed on the potential and importance of ensuring there is an
intergenerational legacy. Whilst the legacy potential has yet to be fully
explored, early discussions have traversed the following topics:
· Accelerating
urban development projects on the city-waterfront and increasing public open
space and access to the water, providing for the growing number of visitors and
city centre residents
· Providing
a platform for and attracting new marine-based events, consolidating
Auckland’s status as a mecca for world sailing
· Showcasing
Auckland and New Zealand’s art, culture, hospitality and diversity
· Promoting
innovation, technology and attracting talent
· Bolstering
the marine industry, servicing both marine events and the superyacht refit
industry
· Finding
opportunities to build capacity (e.g. training programmes for young people)
· Finding
ways to do things differently – a new normal delivery process and
practices.
· Deepening relationships and partnerships with Iwi
Auckland 2021
19. A
series of events in 2021 on the land and water provide a distinct opportunity
to showcase Auckland. There is significant potential to link and leverage a
number of events, which could include:
· The 181st Auckland Anniversary Day Regatta (January 2021).
· Te Matatini – the biennial national Kapa Haka festival in
mid-to late February 2021. The event is usually four days long and is likely to
attract over 1,000 performers and whanau to the Auckland region and has over
25,000 festival attendees
· The 150th anniversary of the Royal New Zealand Yacht Squadron
(RNZYS). The RNZYS has proposed an array of events during summer 2021 including
a J Class regatta, a classic regatta, an off-shore race, and an ICOYC
conference
· The America’s Cup Christmas Regatta, the PRADA Cup and the
America’s Cup Match
· APEC 2021 (to be hosted over a 12 month period between December 2020
and November 2021) culminating in leaders week in Auckland over the 8th-14th
of November.
It is understood that New Zealand will
also host the Women’s Cricket World Cup and the Men’s Softball
World Championship in 2021, however match locations have yet to be confirmed.
Waterfront and City Centre Downtown Vision and
Programme of Works
20. At
its 5 September 2017 meeting, the Planning Committee approved the direction and
intent for updated implementation of the City Centre Master Plan and Waterfront
Plan (PLA/2017/111).
These plans set a clear direction for the city centre and waterfront through to
2030.
21. Collectively
the plans outline that each wharf has a role to play to serve the city and
community’s needs:
a. Wynyard
Wharf - the future location of a mixed use development, marine and cultural
precinct with a headland park that faced the city
b. Halsey
Street Wharf, Hobson Wharf and water space - supporting the growth of
recreational, commercial and tourist boat activities that provides access to
the Waitemata Harbour (blue highway)
c. Queens
Wharf - transitioning from the primary cruise terminal, back to a public wharf
and supporting modernised ferry infrastructure and services
d. Captain
Cook Wharf - transitioning from a freight use into New Zealand’s primary
cruise terminal
e. Princes
Wharf and Queens Wharf Basin - accommodating better ferry infrastructure and
public access to the downtown basin.
Figure
One: Waterfront Plan and City Centre Master Plan (10+ years)
22. Figure
One above shows a vision that could be achieved over the next 10-15
years. It is the summation of the approved Waterfront Plan (2012) and
City Centre Masterplan (2012) and refreshed work to inform the 10 year long
term plan discussions.
23. The
recent 30-year Master Plan prepared by Ports of Auckland Limited (1st November
2017) proposed changes to the Port footprint, including support for Council
initiatives to develop improved cruise infrastructure at Captain Cook Wharf.
This proposed masterplan is out for consultation.
24. There is critical work that needs to occur in the downtown precinct,
within the next four years, to enable the America’s Cup and APEC
events. These include Quay Street seawall, Quay Street upgrade, Downtown
Public Spaces improvements, Phase 1 of the ferry terminal reconfiguration and
the bus interchange. This work will cost approximately $220 million, of
which approximately $130 million is currently funded and/or requires rephasing
within the Long-term Plan.
Economic
Assessment and Marine Sector Study
Economic
Impact of Hosting the America’s Cup
25. The Ministry
of Business, Innovation and Employment (MBIE) commissioned a study by Market
Economics on the potential economic impact of Auckland hosting the 36th
America’s Cup (refer Attachment D).
26. The
draft study shows the impact of investment in infrastructure and focusses on
the direct benefits of hosting the event. It does not consider the benefits of
future use of any new infrastructure, or ongoing benefits to the marine
industry.
27. The
study provides estimates under low, medium and high scenarios show:
· Hosting the 36th America’s Cup will provide a positive impact
over the period 2018-2021 of $555 - 977 million in value add to the New Zealand
economy, primarily from super yacht and syndicate spend including ETNZ.
· Cost benefit analysis over the period of the 36th America’s
Cup is positive ranging from 1.2 to 1.8. This is a measure of the cost benefit
for the whole economy and takes into account not just the Crown and Auckland
Council spend.
· The majority of visitation and activity (80 per cent) is likely to
occur in Auckland and during the Challenger Series and final America’s
Cup Match, from January – March 2021
Auckland’s Super Yacht Industry -
Outlook and Potential Economic Impacts
28. Separate
to the above report and recognising that there is a potential legacy benefit
from superyachts of infrastructure investment for AC36 and that the event will
demand for superyacht facilities, Auckland Tourism Events and Economic
Development (ATEED), commissioned Market Economics to provide a complementary
economic study to that above, focused on potential for flow on effects to the
marine sector (Attachment E).
29. The
report provides baseline data for the marine industry of super yacht visitation
in New Zealand and Auckland, and models the future growth of the superyacht
activity, both with and without the America’s Cup, as a potential legacy
benefit. The final-draft version of the report is attached and the draft
findings are:
· The number and size of superyachts is growing globally
· New Zealand’s share of 30m+ boats is currently 50 to 60 per
annum and is growing in line with global growth. This is driven primarily by
New Zealand’s safe location outside of the cyclone zones; the maintenance
schedules of the global fleet (for insurance and survey requirements), the high
regard for the local marine industry, and New Zealand’s recently
introduced favourable tax treatment (two year import ability and charter
ability)
· All superyachts need two and five year maintenance work done (for
insurance and survey purposes). The majority of super yachts visiting New
Zealand get refit work done when they are here, both at berth and refit
facilities
· Auckland’s annual capacity with no additional investment in
infrastructure is 75 boats but this could increase with investment in refit
facilities at Site 18, Wynyard Quarter (Silo Marina) and the addition of
superyacht berths as a legacy of AC36
· The EIA estimates 140 superyachts will come for AC36 (including the
60 in the baseline. The AC36 event provides a catalyst for additional
investment in infrastructure to accommodate 140 superyachts annually
· The economic benefits of superyacht visitation are wide ranging
across a number of sectors of the economy. The “high” scenario
projects an annual contribution from superyachts of over $213m in additional
added value to the economy and will sustain an equivalent of 2,600 worker years
of employment, particularly in the higher skilled categories (technical,
design, engineering and managerial).
America’s
Cup Team Base Location, Infrastructure and Event Overlay
30. The Joint Executive (Council and Government) Steering Group, chaired
by Stephen Town has agreed that the focus of the first tranche of technical
work for AC36 should be to enable a decision on a location and infrastructure
requirements. Panuku has been the lead council agency for the work around
location, and associated work to explore the potential of the AC36 legacy,
engagement with Mana Whenua and the regulatory strategy.
Framework
for Evaluation
31. Panuku,
supported by ATEED, MBIE, Treasury and Beca Limited have developed an
evaluation framework to consider, review and test options. The project team
established a robust and transparent framework for assessing options that
addressed the elements considered important in delivering a successful AC36.
32. In developing and assessing the options it should be noted that
assumptions have been made and they continue to evolve – such as the
numbers of teams attending and their space requirements.
Table One: Assumptions
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Ref
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Category
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Description
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1
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AC event
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· Christmas regatta: potentially part of the World
Series, ETNZ intends to organise and run this event in December 2020
· Challenger Series: organised by Luna Rossa the
Challenger of Record, this is the competition to determine which challenger
will have the opportunity to race ETNZ in the America’s Cup Match. It
is expected to take place from January to February 2021
· America’s Cup Match: organised by ETNZ, the
final regatta of the 36th America’s Cup is scheduled to take place
between ETNZ and the winner of the Challenger Series in March 2021
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2
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Team numbers and arrival
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· Accommodation required for eight teams (possibly 10)
, including ETNZ
· Three teams will want to be based in Auckland in
mid-to-late 2019 (i.e. in 18 months’ time)
· All teams will expect to be based in Auckland by end
of 2019
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3
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Team bases and water
space requirements
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· A mix of double (two boat) and single (one boat)
bases
· Teams must launch into sheltered water space
· Due to the boat size the teams need water depth
alongside bases of 5.5 metres or greater at all tides
· Space needed for support vessels close to the
village, including the J-Boat fleet and super yachts
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4
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Village
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· The village experience is important to attract the
public and sponsors
· Agglomerating village activity is fundament to the
commercial viability and success of the event (i.e. agglomerated activities,
teams, space for sponsors, capturing revenue from the event and adjoining
berthage)
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5
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Security
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· Team base and operations will require a secure
village & water space in the build-up
· Teams welcome public interaction during the event,
particularly when the depart and return to base after races.
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6
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Legacy
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· Importance of leaving a legacy –
sustainability, culture, identity, education, marine innovation, technology
and events
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33. A
full description of the evaluation process is provided in the technical report
at Attachment B, however the main steps are briefly outlined in Table Two
below:
Table Two: Location
Analysis Process Steps
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2017
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Step
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Description
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July
–August
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Develop criteria
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· Identify locations to be assessed
· Develop non-financial criteria for assessing each of
the location options
· Test assumptions with stakeholders and refine
criteria
· Weight and score the criteria (pairwise method)
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July
–August
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Profile each location
option
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· Develop understanding of each potential location
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August-September
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Apply learnings
from other events
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· Develop lessons learnt
· Update assumptions
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August-September
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Review long list and
develop short list and costings
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· Score all locations against the criteria
· Short list developed for further testing
· Develop costings and test against each option
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September-October
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Interrogate short list
further
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· Test with stakeholders
· Refine costings
· Understand implications and costs of relocation
· Test regulatory approach
· Understand consent issues
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November
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Recommend option
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· Based on best fit with criteria and stakeholder
feedback recommend option to Auckland Council and NZ Government
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Engagement
34. To
assist the work as described in table two above, Panuku worked and engaged with
the following key stakeholders:
· Emirates Team New Zealand
· The Royal New Zealand Yacht Squadron (RNZYS)
· Challenge Group – Viaduct Harbour Holdings Limited,
representatives from the City Centre Advisory Group and Stop Stealing our
Harbour
· Government Agencies – Treasury, Ministry of Business Innovation
and Employment, Te Puni Kokiri, Office of Treaty Settlements
· Council Controlled Organisations – ATEED, RFA, POAL, AT
· Technical Advisory Group – Auckland Council Design Champions
35. Panuku
and Auckland Council have also engaged with iwi:
· Ngāti Whātua o Ōrākei
· Members of the Panuku Mana Whenua Forum
36. In particular, through engagement to date with mana whenua, they
have clearly expressed a strong interest in opportunities around the Cup
Village and leveraging off cultural and commercial opportunities.
Lessons Learned
37. A
desk top review undertaken of the lessons learned from previous America’s
Cup events (2000-2017) is provided in Attachment B. ETNZ also provided input on
their experience and what they felt made a successful event. Much of the
conversation focussed around the success of the village, which is made up of a
number of components, and the importance of agglomerating these components as
far as possible.
Figure Two:
Components of a village
38. As noted in the assumptions, the activity around the village is an
important part of the success of the event. Public access to view the teams and
line the shores to send off and welcome back the teams is a vital part of the
village experience. The ability of the event ‘owner’ to make a
commercial return from the village is achieved by having space to host sponsors
and events which provides an opportunity for branding and capturing the revenue
from berthage. From a logistics and operational point of view, having control
over security, managing health and safety issues is of paramount importance.
These factors have been considered as part of the criteria for assessment as
outlined in Table Three.
Evaluation Criteria
39. At
the 14th of August Planning Committee, Panuku tabled an early draft
“coarse evaluation” framework. A general level of comfort was
expressed by the committee with the approach proposed and over the course of
August and September; the criteria were developed in detail with key stakeholders
and Beca Limited. The full criteria are provided in Attachment B (Chapter 2).
40. The
final criteria were grouped into four broad categories which form the key
phases or components of the project lifecycle.
· Delivery: Whether the bases be delivered in the timeframe
required
· Event: The extent to which the bases provide the best outcome
for servicing the needs of AC36 event
· Legacy: The extent to which any investment delivers a sustainable
benefit beyond the event itself
· Other: The impact on existing land uses, services and activities
prior to, during and post event.
41. Out
of 12, four criteria were considered to be Pass/Fail criteria. Cost was
not included as a discrete criterion to enable the selection to be based on
non-financial attributes first. Costings were developed for the
shortlisted options only.
Table Three:
Location Analysis Process
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Ref
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Name
|
Phase
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High
Level Criteria Description
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Pass /
Fail
|
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1
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Delivery programme
|
Delivery
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Timeframe to deliver AC
bases and associated water infrastructure
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Yes
|
|
2
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Existing infrastructure
and amenities
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Delivery
|
Site access and service
infrastructure. Local amenities for syndicate personnel and families
|
|
|
3
|
Environmental and
statutory tests
|
Delivery
|
The impact on the
environment and the extent to which the delivery of the location can meet
statutory tests (RMA, LGA, MACA)
|
Yes
|
|
4
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Maximising existing
assets
|
Delivery
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The extent to which the
location optimises use and value of existing infrastructure and facilities
|
|
|
5
|
Land space requirement
|
Event
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The extent to which there
is an appropriate space to meet the land side and access requirements for
the team bases
|
Yes
|
|
6
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Water space requirement
|
Event
|
The extent to which
there is space to meet the water space requirements for vessels and support
activities
|
Yes
|
|
7
|
Associated water space
infrastructure
|
Event
|
The extent to which
there is space to cater for additional event requirements / proximity
supports an event village
|
|
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8
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Accessibility
|
Event
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The extent to which the
location is accessible for the public and events. Ability to create an
associated event village
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|
|
9
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Proximity to race course
|
Event
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Accessibility from the
base location to the racing course
|
|
|
10
|
Legacy water based event
location
|
Legacy
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The extent to which the
location provides a future base for major water-based events
|
|
|
11
|
Post event legacy
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Legacy
|
Post AC36 objectives and
opportunities including:
- The extent to which the location meets / accelerates existing council and
government objectives
- The extent to which the location contributes to value creation
opportunities for Auckland and NZ
|
|
|
12
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Impact on BAU
|
Other
|
The extent to which the
location impacts on existing activities
|
|
Location Options - Long List
42. A
long list of potential location options was developed. This list was populated
from options that have been raised in the past (during the AC35 event),
suggestions from stakeholders and ideas and strategies that have been tabled
through the development and refresh of the City Centre Masterplan and
Waterfront Plan.
43. All
options considered were required to have some form of existing wharf, marina,
or water access at a minimum, as well as an existing connection to the road
network.
Figure Three: Geographic
representation
44. Three
types of configurations were considered:
· ‘Centralised’ options - All teams can be co-located in
one location. Based on lessons learned this is the configuration most likely to
deliver a village feel and commercial success
· ‘Clustered’ options - Bases are sited at several
different locations in close proximity to each other. This configuration should
still deliver village experience/feel
· ‘Dispersed’ options - Bases are sited at several
different locations that are further apart than the clustered options.
45. Several
options in the long list failed a number of criteria in the evaluation, the key
reasons include not being able to obtain the site in sufficient time to
complete the development of the base infrastructure and not being able to
provide sufficient land area to serve as the primary base location for eight
bases.
46. All of the regional Auckland options failed for the reasons noted
above. Additionally, these options generally performed poorly on event or legacy
criteria. This left five possible locations within the city centre waterfront
that are discussed below.
Short List Options
47. The
second stage of the options assessment process involved refinement and
development of the short list of options, followed by cost estimating by WT
Partnership. Costs are made up of infrastructure (wharf and services) services
to base buildings (power, water, communications, storm water, sewer), the event
overlay (provision for berthage for the large number of superyachts expected
for the event) and relocation of any existing uses.
48. Through
further analysis of the short list, sub options were developed and interrogated
which means that a total of eight options were designed and tested with
stakeholders.
49. After
further consideration, the nine options were reduced to five, due to their
inability to deliver on key criteria, in particular:
· Feedback from ETNZ on the pass/fail criteria and on the ability to
deliver a functional village
· Complexity of consenting and risks around construction
· Impacts on business as usual, including sterilisation of sites into
the future and the level of commercial negotiation required
50. This
left five options to be considered in further detail. Attachment A
summarises the options that have the greatest potential to deliver on the AC36
criteria and have generated interest both publicly and politically. For all
options it should be noted that:
· ETNZ advises that five double bases and three single bases will be
needed to cater for eight teams in total. It may well be there are more teams
to accommodate, or that the base sizes and requirements change as we learn more
from the Protocol.
· All bases are a mix of built structures (boat sheds) and open space
(hardstand)
· The diagrams represent the result of a functional exercise to
compare options against each other. The diagrams do not represent the
final design response. Design improvements will be sought through the next
phase to inform the resource consent process, including finding ways to reduce
the footprint required, or using innovative materials or construction
techniques to require the least amount of intervention into the coastal marine
area.
51. As
part of the recent discussions led by the Mayor, a community group has included
an option that staff had assessed in the long list and had failed on key
criteria. This was a dispersed model, where the team bases were spread on the
Western and Eastern Wynyard Wharf and bases on the site known as Site 18 in
Wynyard Quarter. Staff will provide further detail on this option and
table advice for the committee at the meeting.
52. Attachment B (Chapters four and five) provides full technical analysis
that has been undertaken to inform the short list. A high-level summary
of the five short-listed options is provided in Attachment A.
Negotiation
with and relocation of existing commercial tenants:
53. Both
the Halsey Wharf extension and Dispersed Halsey options, require negotiation
with current commercial tenants. There are also historic water space
agreements that have been in place since the last Americas Cup and the
development of the Viaduct Harbour.
54. At
this stage, an indicative figure of $18m has been provided for negotiation and
potential relocation. This figure may well change depending on the complexity
and length of the negotiations with third parties in the Wynyard Quarter.
Recommended
Locations for Negotiation and Associated Cost
Location
and Cost
55. The
technical work has traversed a range of locations and iterations of functional
designs over the past 12 weeks, testing ideas with stakeholders and considering
the challenges and merits of each option and the ability of the options to deliver
on the criteria established.
56. The
Halsey Wharf extension is the option that can best deliver on the criteria that
has been established for the location analysis assessment. The
Halsey/Hobson/Wynyard Wharf East (Dispersed cluster option) also has some
merits. Both options provide a new space on the waterfront with public access
to the water. This was envisaged and is consistent with Council strategic
plans. Staff will provide analysis on the Western and Eastern Wynyard
Wharf/Site 18 cluster option at the meeting.
57. Both
options still have risks:
· In the context of previous and current debate on extensions into the
Waitemata Harbour, both options introduce new structures into the debate. These
structures in the Coastal Marine Area are of high interest to Mana Whenua and
key stakeholders with regard the environmental impact of construction and
occupation
· The Halsey Wharf extension is the location that requires the longest
construction duration. However construction complexity is reduced due to
working from a single site. This option comes in at a cost approximately $169
million for infrastructure and event overlay (supporting berthage)
· The Dispersed Halsey option has a lesser construction time, but the
issues are more multifaceted - construction could be more complicated by
operating across multiple sites and next to sites that are close to bulk liquid
operators and there are a greater number of commercial complexities to manage.
The dispersed option comes in at a cost approximately $124m for infrastructure
and event overlay (supporting berthage). Some of the infrastructure on
Wynyard Wharf may be temporary to cater for the event and then removed to allow
for business as usual to continue
58. Both
options require some negotiation with commercial tenants and private
landowners, which have contractual rights on land and water. For both
options an additional funds would need to be allocated to allow for
negotiation, relocation and provision of new infrastructure. The work to date
as indicated a total of $18m for both. This may well vary, particularly as
the Dispersed Halsey Option, which covers multiple locations and has more
complex commercial arrangements to address than the Halsey Wharf extension
option. The total above does not include projects that are being
considered as part of the LTP along the waterfront.
59. There
are revenue-generating opportunities from delivering the infrastructure. Much
of the cost of the wharf infrastructure relates to the services. These
services are charged for and are a revenue stream for the owner of the wharf.
Event
Delivery
60. The
Halsey Wharf extension option best delivers for the event requirements, for
public access and consolidating activities on one location to support the
operation of the Village, and is the one that is supported by ETNZ. In
particular, it provides the sheltered water space to team bases required for
launching the boats. It also provides additional berthage for supporting
vessels (race officials, media, harbour masters) super yachts (which are a good
source of revenue) in one location.
61. The
Dispersed Halsey option goes some way to deliver on event requirement for
public access. Activities are spread out and there is an uneven distribution of
those bases with access to sheltered water space. The option does provide some
additional berthage for supporting vessels (race officials, media, harbour
masters) and super yachts. Due to its dispersed nature it is likely that
running costs for the village (security, operations) will increase.
Legacy
Potential
62. The
legacy story in this technical work has been focused on what can be delivered
through infrastructure and how these new assets can contribute to the long term
strategic plans for the waterfront, that have been consulted on with the public
and politicians. The Economic Assessment and super yacht studies provide
emerging statistics as to how delivery of this new piece of infrastructure can
contribute to the legacy around economic development and tourism. As Auckland
has experienced in the past, these events provide an added momentum to the growth
of the city and our rate of change.
63. Auckland
is a popular destination for events and our current offering is attractive,
however these major events displace existing activities. Having a
flexible deck space makes it easier to host and importantly makes it easier and
cheaper to attract and host new events.
64. Figure
Four shows what could be delivered by 2021 (in the red boxes) which contributes
to council’s 10+ year waterfront vision, showing the Halsey Wharf
Extension and Auckland in AC36 ‘event mode’.
Figure Four:
Opportunities for accelerating projects through to 2021
65. The Halsey extension option as presented
in this technical work does have a wider footprint than that envisaged in the
Waterfront Plan. The option:
· Provides another open space for the growing
resident population and wider public to access and experience the waterfront.
· Provides new sheltered water space and flexible land space that can more easily accommodate
international and local water based events
· Provides the opportunity to support the growth
of the marine industry, through created new waterspace for recreational,
charter and commercial boats. This is a major contributor to the value
added to the economy (refer Attachment D).
66. Figure
Five shows what could be delivered by 2021 (in the red boxes) which contributes
to council’s 10+ year waterfront vision, showing the Dispersed option of
Halsey/Hobson, Wynyard East Extension and Auckland in AC36 ‘event
mode’.
Figure Five:
Opportunities for accelerating projects through to 2021 – with the
Dispersed Option
67. The dispersed Halsey option as presented
in this technical work has a smaller footprint than that envisaged in the
Waterfront Plan on Halsey Street and introduces new infrastructure on to Wynyard
Wharf. The option:
· Provides some additional space for the public to
access and experience the waterfront.
· Provides some new flexible land space that can
more easily accommodate international and local events. It provides slightly
more additional sheltered water space than the status quo and a smaller
contribution to the value-add that can be attributed to super yacht berthage.
· Does start to introduce the public and visitors
to Wynyard Wharf as future destination for commercial, residential and public
open space. The additional structures on Wynyard, are
likely to be temporary for the event only. There is some opportunity to
retain these structures and reuse for future ferry infrastructure.
68. For
any option chosen, the process of construction and quality and fit will be one
that is befitting of its Wynyard Quarter location. Wynyard Quarter is an
award-winning location, demonstrated through the quality of design of public
spaces and architecture, the way that the public is encouraged to engage with
the spaces and the large number of visitors throughout the year.
Investment
Allocation
Agreements
on contributions
69. It
is recommended that the Mayor and the Auckland Council Chief Executive
negotiate the funding allocations with the Crown, Emirates Team New Zealand and
private investors, with a view to recommending a decision at the 14 December
2017 Governing Body meeting.
Implementation
Consent Strategy
70. The
timing of the AC36 event in 2021 requires a number of complex planning and RMA
consent approvals. There are also a significant number of associated
infrastructure projects and AC36 base facilities that will require
consent.
71. With
input from the Ministry for the Environment, Panuku has completed a planning
and consenting strategy. The timing available to undertake the consenting for
either of the viable options is severely constrained. To meet timeframes, the
only realistic option is a single hearing process undertaken under existing RMA
single hearing processes.
72. Of
the existing single hearing RMA processes, direct referral to the Environment
Court is recommended as the preferred approach for consenting the
infrastructure required. It is an established procedure that will involve
public notification by the Council and a single hearing before the Court where
any concerned members of the public or community groups who submitted can
participate. Subject to a consent application being lodged by 15 January 2018,
a decision from the Court is anticipated by late July 2018/early August 2018.
Consideration
Local
board views and implications
73. The deputy Chair of the Waitemāta Local Board and
Devonport-Takapuna Local Board participated in the 13th of November
workshop with Councillors. It is the intention to engage with the Local Board
Chairs and an invitation will be extended to all Chairs to receive a background
to the material presented in this report and the attachments.
Māori
impact statement
74. AC36
provides Council an opportunity to work with Māori guided by principles of
shared decision-making, partnership and mutual benefit to support
Council’s goal to celebrate and promote a Māori identify that is
Auckland’s point of difference. The event also provides significant
opportunity to support the transformational shift in the Auckland Plan to lift
Māori social and economic wellbeing.
75. Panuku
has undertaken early engagement with mana whenua on the location short list and
initiated discussion on the associated resource consent application. It
is important to note that not all 19 mana whenua entities are involved in this
collective engagement, and there have been meetings with Panuku and iwi on an
individual basis. Both the collective and individual engagement is ongoing.
76. As
an international show case event, mana whenua, collectively and individually
have identified several priority outcomes around AC36 and the resulting
legacy. While Panuku has started conversations with mana whenua on these
opportunities, it is widely accepted that these discussions are more
appropriate at an executive level between council and mana whenua. Council has
confirmed its intention to engage at the highest level to ensure the
significance of this project and its potential legacy is dealt with
appropriately.
77. The
America’s Cup victory has led council to consider a new approach on how
we engage with our mana whenua partners within challenging timeframes. Auckland
Council is committed to working closely with the Mana Whenua Kaitiaki Forum to
develop a Maori Outcomes framework and a comprehensive engagement strategy
across the iconic city centre and waterfront programme, with AC36 being a
central and prominent project across this programme. Understanding the
overarching programme including the demands on time and resources; connections
between work streams; and developing strategic programme outcomes, will
significantly improve how the organisation works together with mana whenua
in a more collaborative and cohesive way.
78. In
order to progress this work Council is seeking a mandate from the Kaitiaki
Forum on 23 November to work with dedicated mana whenua governance
representatives that will be an integral part of the Māori Outcomes work
focus across the City Centre and Waterfront Governance programme. This mandate
is important to ensure that the council can be agile during compressed time
frames. It is noted that this governance involvement does not preclude
individuals or iwi organisations from formally submitting on the consent
application and being a party to the consenting process.
79. A
related and priority conversation has also been initiated with central
government on Treaty related issues, as AC36 will include works and structures
within the Waitematā Harbour. Council has invited central government
agencies including MBIE, Office of Treaty Settlements and Te Puni Kōkiri
to be part of these ongoing conversations. We expect these entities will form
part of the Māori Outcomes project team that will develop the Framework to
drive the economic potential of AC36’s resulting legacy for mana whenua
and Māori generally.
80. Part of council’s commitment to delivering Māori outcomes
includes a proactive approach from the council whanau to include an engagement
programme for mataawaka and Māori business opportunities that AC36 may
offer. This will form part of council’s work across the City Centre and
Waterfront programme.
High Level Risks
81. High
level risks are outlined in Table Four.
Table Four: High
level risks
|
|
Category
|
Risk
description
|
|
1
|
Delivery
|
· The tight timeframe for the infrastructure and
location decision
· Local and Central government commitments to funding
before end of 2017
· Delays in decision making mean: insufficient time to
complete design, obtain resource consent, procure and construct
infrastructure by mid-late 2019
|
|
2
|
Public and Stakeholder
engagement
|
· Failure to engage wider New Zealand on major events,
such as AC36, APEC risks a lack of buy in with investment and outcomes
· The ability to get Iwi and other stakeholders to
support location decision prior to resource consents being lodged in January
|
|
3
|
Private sector
commitments
|
· The ability to scope and get indicative private
sector commitments in a timeframe to progress conversations around the
opportunity to contribute to infrastructure costs and agree on value of
return
|
|
4
|
Central government
|
· The view of the new administration on location and
funding support is not currently clear
|
|
5
|
Host City agreement
|
· Costs for the America's Cup event include
infrastructure and any event delivery costs. The latter will be determined by
a Host City Agreement that is yet to be tabled by ETNZ. However, it
will be clear before any resource consent is lodged and significant spend is
incurred.
|
Attachments
|
No.
|
Title
|
Page
|
|
a⇩
|
High-level Summary of the Five Short-Listed Options:
|
173
|
|
b⇩
|
Location analysis for America's Cup 2021 in Auckland -
full technical report
|
177
|
|
c⇩
|
Summary of options: Halsey Wharf Extension and Cluster
of bases around Halsey Wharf/Hobson Wharf/Wynyard Wharf East
|
281
|
|
d⇩
|
America's Cup 2021 - High Level Economic Assessment
Evaluation by m.e consulting
|
283
|
|
e⇩
|
Auckland's Super Yacht Industry - Outlook and
Potential Economic Impacts by m.e consulting
|
343
|
Signatories
|
Author
|
Megan Tyler - Executive Officer CPO
|
|
Authorisers
|
Dean Kimpton - Chief Operating Officer
Stephen Town - Chief Executive
|
