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Governing Body
29 March 2018
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America's
Cup 2021 - decision on location and infrastructure requirements
File No.: CP2018/04005
Te take mō te pūrongo / Purpose of the report
1. To
update the Governing Body on the investigation works undertaken by the Crown,
Council and Emirates Team New Zealand on base location options for the defence
of the 36th America’s Cup and to outline the Wynyard Hobson
option agreed by the Mayor, Minister Parker and Emirates Team New Zealand.
2. To agree to proceed with the lodgement of a resource consent
application for the Wynyard Hobson option and withdraw the Wynyard Basin
resource consent application
Whakarāpopototanga matua / Executive summary
3. Staff
from the Auckland Council group and the Ministry of Business, Innovation and
Employment have been working together, with Emirates Team New Zealand (ETNZ),
to prepare an alternative application in support of a resource consent
application for the infrastructure in the Wynyard Basin
necessary to host the 36th America’s Cup.
Fig 1: Wynyard Hobson
proposal
4. The
key elements of the Wynyard Hobson proposal are:
Team bases
· provision
of a total of seven bases (four double bases and three single bases if
required);
· buildings
up to 15m in height;
Hobson Wharf, Halsey Wharf and Wynyard Point
· 74m
length extension of Hobson Wharf, accommodating one double base;
· no
extension to Halsey Wharf;
· use
of the existing Viaduct Events Centre (VEC) on Halsey Wharf by ETNZ as their
base, with their boats being launched into adjoining water space from the
eastern side of the building;
· a
fresh resource consent for the Viaduct Events Centre to reflect the new use;
· up
to five bases on the landside of Wynyard Point;
Associated works across the water space
· construction of temporary and permanent wharf structures over water
space between Wynyard Point and Wynyard Wharf to provide functioning yards for
the five bases on land at Wynyard Point;
· four
new breakwaters to provide adequate water environments for the boats;
· under-wharf
works and dredging;
· associated berths, fencing, facilities and movable cranes for all
bases and facilities for all bases and superyachts;
· relocation
of SeaLink and the commercial fishing fleet (subject to commercial agreements);
Term of consent
· the wharf extension,
breakwaters and under-wharf works are proposed to be consented for 35
years.
· the wharf structures
between Wynyard Point and Wynyard Wharf are proposed to be consented for 35
years, but 50% of the structure is to be removed once the final design of the
adjacent public space on Wynyard Point has been confirmed;
· the consent for the event
and base infrastructure, eg. buildings, will have a proposed term of 10 years,
to enable the hosting of the 36th America's Cup and successive America's Cup
events between 2021 and 2027.
5. The
Wynyard Hobson proposal has the support of Emirates Team New Zealand and the
Crown, requires the least amount of new incursions into the harbour, is easier
to consent and construct than other options, is the least expensive overall,
and enables a strong positive legacy.
6. The lodgement of a new consent application will extend the
consenting timeline by approximately two months, with a decision by the
Environment Court anticipated in October 2018 rather than August 2018. The
overall timeframe remains extremely tight, however the current proposal has
reduced marine-related works and is still able to be completed within the
required timeframes.
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Ngā tūtohunga / Recommendation/s
That the Governing Body:
a) approve
the Wynyard Hobson proposal (extension of Hobson Wharf, use of Viaduct Events
Centre for Emirates Team New Zealand’s base, and five bases on the
landside of Wynyard Point) for lodgement as a replacement for the Wynyard
Basin proposal
b) authorise
the Chief Executive to withdraw the Wynyard Basin application at the
appropriate time
c) approve:
· the
Host City Appointment Agreement entered into between the Crown, Auckland
Council and Emirates Team New Zealand, and
· the
cost-sharing agreement between the Crown and Auckland Council
d) delegate
to the Mayor and Chief Executive authority to:
· agree
minor changes to the Host City Appointment Agreement
· approve
the Host Venue Agreement within the approved Council Funding Contribution
(including any business-as-usual and existing budget lines)
· approve
any consequential changes to Council-Controlled Organisation Statements of
Intent to reflect their roles and responsibilities in relation to the 36th
America’s Cup delivery
e) delegate
to the Chief Executive authority to make decisions relating to the
operational delivery and expenditure of approved funding for the following
matters:
· exercise
council’s rights and obligations under the Host City Appointment
Agreement (and in due course, the Host Venue Agreement), including finalising
the allocation of roles and responsibilities under those agreements within
the council group, and directing
Council-Controlled Organisations accordingly
· finalise
and enter into the Interim Project Alliance Agreement and the Project
Alliance Agreement (collectively, “the Alliance Agreements”) for
the design and construction of the AC36 Physical
Works, including any amendments and variations thereto, within the
Council Funding Contribution
· exercise
the Council’s role, rights and responsibilities, including
Council’s Discretions, as defined in the Alliance Agreements
· decide,
on behalf of the council group, all matters relating to the procurement and
strategy of delivery, including finalised scope of works packages to maximise
interface opportunities with other council group procurement
f) approve $57.2 million of capital expenditure, and $41.3
million of operating expenditure – a total of $98.5 million – as
the council’s share of the $212.4 million budgeted to host the
America’s Cup, with this expenditure being incorporated into the
2018-28 Long-term Plan
g) note that other programmed capital projects and renewals in the
central city and waterfront will be required to be brought forward into the
first three financial years (2018/19 to 2020/21), to prepare the city in
advance of the America’s Cup and Asia Pacific Economic Cooperation
(APEC) Leaders’ meeting in 2021, and decisions on this expenditure will
be taken as part of the Long-term Plan in late May 2018
h) acknowledge that the costs required for planning, consenting and
procurement of the approved option and associated infrastructure across the
city centre and waterfront have already commenced in this financial year
i) note
the AC36 Infrastructure Alliance is now in operation and will begin
early-works investigations and design activities operating under its current
contracts with Panuku which will be novated to Council and then undertaken by
alliance under the Alliance Agreements
j) agree
to a lease being granted to Emirates Team New Zealand for the use of the
Viaduct Events Centre for their base for two America’s
Cup cycles (AC36 and AC37), whether Emirates Team New Zealand participates as a Defender or a Challenger, and with Emirates
Team New Zealand being required to vacate the Viaduct
Events Centre within three months of the completion of AC37
k) note
that a rent concession will be in place for Emirates Team New Zealand from
the commencement of the Viaduct Events Centre lease to 1 March 2022, with
Regional Facilities Auckland being compensated by council for the loss in
commercial revenues
l) request
quarterly updates on the programme
m) refer these
resolutions to Chief Executives and Board Chairs of all Council-Controlled
Organisations.
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Horopaki / Context
7. On
14 December 2017, the Governing Body resolved to approve the Wynyard Basin
location option as a basis for negotiation with the Crown and Emirates Team New
Zealand (ETNZ), and to delegate authority to the Mayor and Chief Executive to
complete negotiations and lodge the resource consent application
[GB/2017/171/172/173]. The application was lodged for consent in mid-January
2018.
Fig 2: Wynyard Basin proposal
8. The Governing Body resolutions acknowledged the Crown remained
committed to further investigating a land-based option focused on Wynyard Point
and would not reach a final view until further due diligence on this option had
been completed.
9. The
investigations traversed a number of iterations but were focused on options to
limit any new incursions into the harbour, manage costs, and enable a strong
positive legacy. The locations were always around Wynyard Basin Point and
Halsey Wharf.
10. Further
details of the event requirements from ETNZ as well as the Crown entering into
discussions with existing leaseholders on the Point meant the parameters around
the event location and design became more certain. In particular:
· ETNZ has advised the base requirement is reduced from eight bases to
seven. The Wynyard Hobson option provides four doubles and three singles;
· The consenting issues associated with the use and development of
contaminated land have been explored and addressed (subject to management of
risk on sites);
· Following discussions with ETNZ, the dates that the bases are
required for occupation have moved, providing a small window of additional
time, albeit within a very constrained delivery timeframe;
· The Waterfront Plan and Unitary Plan identify Wynyard Point as a
location for future mixed-use development, marine industry uses, and a 4.4
hectare public park. The Wynyard Hobson option proposes to locate the bases on
Wynyard Point for a period of up to 10 years, after such time the council group
can undertake development on these sites.
11. The
submissions received on the Wynyard Basin proposal, in addition to alternative
proposals put forward by organisations including Stop Stealing Our Harbour and
Viaduct Harbour Holdings Limited, were also used to evaluate alternative
options.
12. Over the past
few months, the team were focused on the option known as Halsey/Point – a
45m length extension of Halsey Wharf for two double bases and up to five bases
on the south-eastern side of Wynyard Point, also utilising part of the adjacent
road and Wynyard Wharf. This proposal was made possible by negotiations
with some of the hazardous facilities leaseholders to vacate the south-eastern
part of Wynyard Point and moving to the north prior to their leases expiring.
Fig 3: Halsey Point proposal
13. Throughout
this time, engagement continued with mana whenua, the council group, ETNZ,
landowners, tenants and other key stakeholders, focused on the Halsey/Point
proposal. There was generally support for this option but there were some
operational requirements that were still being worked through, particularly
around the Halsey Wharf bases.
14. In parallel,
particularly this last week, the team have been working on the recommended
proposal in this report – Wynyard Hobson. This report details the
proposal and compares it to the existing Wynyard Basin application.
15. The council group still needs to relocate the fishing fleet and
ferry services from their existing locations on Wynyard and Halsey wharves. A
separate application was lodged in January 2018 providing for a relocation
facility on the western side of Wynyard Point.
16. The council group has continued to explore alternative location
options for the fishing fleet and ferry operations, in consultation with
SeaLink and Sanford. This work is ongoing and the application has been placed
on hold while these investigation works are being progressed.
Tātaritanga me ngā tohutohu / Analysis and advice
17. It is useful
to compare the outcomes of the Wynyard Basin and new Wynyard Hobson proposals:
· Both
proposals focus the bases and event around the Viaduct Harbour and Wynyard Basin
(edged by Hobson Wharf and Wynyard Point);
· Both
proposals have bases on the south-eastern side of Wynyard Wharf with associated
infill of water space between Wynyard Point and Wynyard Wharf;
· Both
proposals require new breakwaters off Wynyard Wharf, Halsey Wharf and Hobson
Wharf;
· Both
proposals provide temporary mooring berths for superyachts, J-class yachts and
other regatta and support craft within the Viaduct Harbour and Wynyard Basin
area;
· Both
proposals require a 74m length extension of Hobson Wharf for one syndicate (a
double base);
· The
Wynyard Hobson proposal requires less intrusion into the harbour – 7490m2
(extension of Hobson Wharf – 6690 m2 plus link to breakwater
– 800m2) as compared with 22,990m2 (extension of
Hobson Wharf – 6690 m2 plus extension of Halsey Wharf
– 16,300 m2);
· The
Wynyard Basin proposal had ETNZ’s permanent base on the extended Hobson
Wharf, whereas all base buildings and associated infrastructure in the Wynyard
Hobson proposal will be temporary (for a term of up to 10 years);
· The
Wynyard Hobson application does not seek to determine a permanent location for
ETNZ – this will need to occur sometime after the 2021 America’s
Cup event;
· The
use of the existing VEC for ETNZ’s base means that there is one less
double base and associated buildings required to be constructed. This
reduces the time and cost of construction and means fewer visual impacts of the
event when viewed from the land. It also means that the VEC will not be
available for public use or events for a period of up to seven years.
This is further discussed from para 19 below;
· The
cost of the Wynyard Hobson proposal is cheaper than the Wynyard Basin
proposal.
· Apart
from a small area to the immediate north end of the VEC and at certain times
along the eastern side of the VEC, the Wynyard Hobson proposal will retain
public access to the whole of Halsey Wharf. The Wynyard Basin proposal
restricted public access to the eastern and western sides of the VEC and a 10m
strip on the northern side of Halsey Wharf;
· The
Wynyard Hobson proposal will enable the fishing fleet and ferry services to
remain in-situ for longer on Halsey Wharf. However, they will need to be
relocated for the duration of the AC36 event;
· The
legacy provisions of the Wynyard Hobson proposal are outlined from para 26 and
results in less intrusion into the harbour than the Wynyard Basin proposal and
furthers the revitalisation of Wynyard Point through the removal of silos and
carparking.
18. The key
changes with the Wynyard Hobson proposal are the reduction of base
infrastructure on Halsey Wharf and the use of the VEC by ETNZ. When
considered against the key elements of limiting incursions into the harbour,
managing cost and providing a positive legacy, the Wynyard Hobson proposal best
meets these criteria, while still delivering the fundamental requirements for
the America’s Cup event.
Removal of Viaduct Events Centre from use
19. The two core
elements of the Wynyard Hobson proposal are to locate ETNZ in the existing VEC
building and to locate another syndicate on an extended Hobson Wharf. The
existing Wynyard Basin application proposed that ETNZ be permanently located in
a building on an extended Hobson Wharf. The Wynyard Hobson proposal will
see them using the VEC on a temporary basis only.
20. The lease
agreement provides for ETNZ to occupy the VEC for two America’s Cup
cycles, whether ETNZ participates as Defender or Challenger in AC37. The
duration of the Cup cycles is expected to be until March 2021 for AC36, and a
further three years for AC37 (though the agreement provides for a longer period
for AC37 if this is required). ETNZ will need to vacate the VEC after the
second America’s Cup event.
21. The use of
the VEC by ETNZ will have cost and operational implications for the Auckland
Council group:
· Regional
Facilities Auckland (RFA) owns the VEC as part of council’s network of
regional facilities, generating net revenues of $3.5-$4.0 million per
annum. This revenue will be foregone from the commencement of the lease
on 1 October 2018 through to 1 March 2022 (3 years, 5 months), at which point
the concessionary rental arrangement with ETNZ will be reviewed. The loss
of revenue forms part of council’s financial contribution to the
America’s Cup;
· There
will be reduced revenue for Panuku through the change in water space use;
· ETNZ
will need to make some structural alterations to the building, particularly to
the eastern wall, to allow them to launch their boats directly into the water
space. These alterations will not adversely affect the operation of the
facility, in fact may enhance the use in the future. Any internal
alterations will need to be ‘made good’ by ETNZ when they vacate
the premises;
· ETNZ
will maintain the public viewing platform at the northern end of the VEC which
will give views of the America’s Cup activity including of ENTZ’s
yard operations, with the access shifting to the western side of the building.
An area of wharf deck to the east and north will be required for vessel
launching and crane operations, which will restrict public access. Full public
access will be available at the southern end by the bridge and all the way up
the western side and along Halsey Wharf. ETNZ will enter into an Operational
Agreement with Panuku which will, amongst other things, manage public access
around the eastern side of the premises during the periods when ETNZ requires
the forecourt for their boat operations.
22. The VEC is
the only existing building in the Viaduct Harbour and Wynyard Basin area
that could be used for an America’s Cup base. In all the options
that have been considered since August 2017, all syndicates would require new
buildings. There is cost saving and efficiency in considering the use of
an existing building which was designed for marine use and is therefore almost
entirely fit-for-purpose for ETNZ. In particular, the use of the VEC
allows ETNZ to set up a base ahead of the launching and testing of its first AC
75 yacht early in 2019.
23. The use of
VEC is controlled by an existing resource consent and conditions. The
most relevant conditions relate to provision of public access along the western
and eastern sides of the building, the location and rights of the fishing
fleet, and the use of the building for events. It is proposed to seek a
fresh consent, as part of the Wynyard Hobson application, to ensure that ETNZ
can safely and reasonably use the building as their base, while maintaining
public access along the western side and, as much as possible, along the
eastern side.
24. The VEC is
also right in the centre of the event space, with Hobson Wharf to the east and
Wynyard Point to the west, contributing to a ‘village feel’ for the
event. There are multiple viewing points for the public from existing
roads and public spaces. In addition to the existing public areas, ETNZ will be investigating the feasibility of creating a new
publicly-accessible interactive area on the ground floor on the southern side
of the building.
25. Accordingly,
weighing up the costs to council, particularly in lost revenue and facility
space, and the benefits to the event, including cost savings and less incursion
into the harbour, it is recommended that the Wynyard Hobson proposal proceed.
Legacy outcomes of the Wynyard Hobson proposal
26. International best practice now focuses not only on the benefits of
the infrastructure left behind after a major event, but also on the social,
economic and environmental benefits gained by the host city in the planning and
delivery of significant international events.
27. Auckland Council is working with its partners and stakeholders to
define what success looks like, in terms of legacy outcomes such as:
· the importance of good, well-designed and well-managed public space,
creating urban environments that promote belonging and participation for
visitors and citizens alike;
· new network of waterfront public spaces, enabling future water- and
land-based events and informal activation;
· environmental outcomes that build on the Wynyard Quarter’s
sustainable development framework, including water quality, low carbon and
waste minimisation measures, as well as resilient design that recognises the
challenges of climate change;
· economic and social outcomes that enable all Aucklanders to enjoy
the benefits of an international event, with activation across the city, and
local training, employment and business opportunities;
· Māori outcomes as defined by Auckland Council’s Regional
Mana Whenua Kaitiaki Forum;
· business-as-usual, continuing the successful waterfront development
and collaboration with private investors and business operators, and
strengthening the operations and capacity of the marine, ferry and fishing
industries;
28. In terms of infrastructure, once the 10-year consent period has
elapsed, the Wynyard Hobson proposal will leave behind:
· a 74-metre extension of Hobson Wharf to create a new public space,
with potential for marine and land-based events, potentially in conjunction
with the use of the Hobson Wharf buildings owned by the council group and
presently occupied by the New Zealand Maritime Museum. This space could
also be considered for a well-designed permanent building for harbour-related
activities. For example, it could be a potential permanent base of ETNZ on it
vacating the VEC. Any proposed for a permanent building would need to be
assessed by a future resource consent application;
· an extension of the waterfront pedestrian network around the Hobson
and Halsey wharves and breakwaters, allowing public access to the water’s
edge and views across the basin;
· new sheltered water space in the Viaduct and Wynyard Basins to
enable water-based events, both local and international;
· upgrade to Wynyard Wharf and sea wall, with infill spaces that can
be temporarily used for public activation until the proposed linear park can be
developed.
Consenting strategy
29. It
is intended that the Wynyard Hobson proposal will replace the Wynyard Basin
application. This means that the Wynyard Basin application will need to
be withdrawn at the appropriate time.
30. The
timing available to undertake the consenting for the Wynyard Hobson proposal
means that the only realistic option that is available is to continue with the
same approach undertaken for the Wynyard Basin application with direct referral
to the Environment Court. Subject to a consent application being lodged in
early April 2018, a decision from the Court is anticipated by mid-October
2018.
31. While
any delay is a risk to the construction of the bases, preliminary analysis
indicates that the Wynyard Hobson proposal will take less time to construct
than the other options and therefore an October 2018 decision is
acceptable. It is noted that the council group has already procured an AC36
Infrastructure Alliance consisting of McConnell Dowell,
Downer, Beca and Tonkin and Taylor and they are located in Bledisloe
House.
32. Part of Brigham Street, on the eastern side of Wynyard Point, is
required to be stopped in order to construct the bases. This will be done
outside this consent application - the Public Works Act may be used or special legislation
may be required in order for the process to be completed in time for
construction. The Ministry of Business, Innovation and Employment will
lead this process.
33. As part of
the investigations into alternative options, the Crown led discussions with the
hazardous facilities leaseholders at the south-eastern end of Wynyard
Wharf. It is not yet known how much land is required for
bases, as the final number of teams has not been confirmed. Space for four
double bases has been confirmed through using the ASB carpark and Stolthaven
south site. Further space could be made available depending on base
requirements and arrangements to be reached with existing tenants. The consent
is sufficiently broad to enable this option to be taken up should it be required.
34. Following lodgement of a separate consent on 15 January 2018, the
council group has continued to explore alternative location options for the
fishing fleet and ferry operations. The Wynyard Hobson proposal has much
less effect on these operators leading up to the event. It is likely that
these operators can stay in-situ for longer but work is still ongoing around
this. Discussions are occurring with Ports of Auckland Limited around
accommodating some of these operators. Accordingly, the fishing and ferry
application has been placed on hold while these investigation works are being
progressed.
Associated agreements, including Host City Appointment agreement
35. There are a
number of agreements that enable the America’s Cup event to be held in
Auckland. The comprehensive agreement is known as the Host City
Appointment Agreement. While there are some confidential aspects relating
to cost sharing and commercial negotiations, the Host City Appointment
Agreement includes:
· the
appointment of Auckland as host city and New Zealand as host country of the 36th
America’s Cup event;
· three
event races directly associated with the 36th America’s Cup
– the America’s Cup Christmas Race (December 2020), the
America’s Cup Challenger Series (January/February 2021) and the 36th
America’s Cup Match (March 2021);
· financial
reporting and payment requirements over time;
· council
and the Crown to provide the base infrastructure, including all necessary
consents and permits, within certain timeframes, including:
o four
double-base areas by August 2019
o all
other base areas by August 2020
· various
rights, benefits and delivery requirements on all parties
· various
governance arrangements
· standard
confidentiality and dispute resolution provisions
36. Council and
the Crown have also entered into a cost-sharing agreement, apportioning the
above funding obligations between them (further discussed from para 47 below).
37. The Mayor has
made it very clear that the council will not provide any money towards the hosting
rights for the event or for ETNZ’s campaign. The agreement requires
the Crown to pay the event-hosting contribution of $40m.
38. The Governing
Body resolutions in November and December [GB/2017/145 and GB/2017/171/172/173]
provided delegated authority to the Mayor and the Chief Executive to undertake
negotiations with the Crown, Emirates Team New Zealand and private investors on
the funding, location and infrastructure required to host the 36th
America’s Cup. Within that delegation, the Chief Executive has
signed the Host City Appointment Agreement and the cost-sharing agreement with
the Crown.
39. These
agreements were signed subject to Governing Body approval. The Mayor and
the Chief Executive are satisfied that the terms of the agreements will enable
a world-class event and a legacy which will be enjoyed by Aucklanders for
decades to come. The costs to council are within the parameters provided
by the Mayor and Governing Body.
Ngā whakaaweawe ā-rohe me ngā tirohanga a te
poari ā-rohe /
Local impacts and local board views
40. All Local
Boards have been kept informed on progress since January 2018 at the same time
as the Governing Body.
Tauākī whakaaweawe Māori / Māori impact
statement
41. The Waitematā Harbour is of extremely high spiritual, ancestral,
cultural, customary and historical importance to ngā mana whenua o
Tāmaki Makaurau. Each mana whenua group has its own views in
relation to the harbour and how their values will be impacted by proposals
within this space.
42. Auckland
Council group and the Ministry of Business, Innovation and Employment have
continued to meet with the Mana Whenua Kaitiaki Forum as agreed in the initial
hui late last year.
43. All parties
acknowledge that the engagement process is still being refined and
improved. Nothing limits the ability of mana whenua or any iwi group from
exercising its statutory rights to submit on the application under the Resource
Management Act 1991.
44. A proposed
governance structure was submitted for feedback at the last meeting which would
ensure mana whenua representation on all workstreams to deliver the event
– strategic and operational.
Ngā ritenga ā-pūtea / Financial implications
45. The
America’s Cup is controlled by a board and a set of minimum rules.
A company will be set up to run the 36th America’s Cup event
in New Zealand. ETNZ as holder of the Cup and Luna Rossa as Challenger of
Record have particular roles and responsibilities within this.
46. Accordingly,
council’s role is essentially one of enabling through the provision of
infrastructure, use of assets and assistance with event delivery.
Funding commitments and cost
allocations
47. It is
proposed that both the council and the Crown will allocate funds towards the
provision of infrastructure and the event hosting in a cost-sharing
arrangement. A cost sharing agreement with the Crown has been signed by
the Chief Executive, subject to Governing Body approval.
48. The funding
commitments and cost allocations are set out in the table below:
|
Line Item
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Crown
|
Council group
|
Total Budgeted Cost
|
|
|
|
|
|
|
Construction
|
$65.8 m
|
$57.2 m
|
$123.0 m
|
|
Event Investment
|
$40.0 m
|
Nil
|
$40.0 m
|
|
Commercial and Base Related Costs
|
$8.1 m
|
$34.0 m
|
$42.1 m
|
|
Event-Related Services
|
Nil
|
$7.3 m
|
$7.3 m
|
|
|
|
|
|
|
Total
|
$113.9 m
|
$98.5 m
|
$212.4 m
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Table 1 – Funding
commitment and cost allocations
49. The Crown
will contribute $113.9 million towards a total budgeted cost of $212.4 million,
including an event investment of $40 million paid to ETNZ as part of the Host
City Appointment Agreement.
50. It is proposed
that the council contribute $98.5million, which will include:
· a
46.5% contribution towards construction costs;
· a
share of costs for removing the tank farms from the southern end of Wynyard
Point;
· the
decant of Sealink and the fishing fleets from the Halsey/ Wynyard Basin;
· ETNZ’s
use of the Viaduct Events Centre, including an allowance for the loss of
commercial revenues;
· in
kind event services related to running AC36 which will be borne across the
council group.
51. Approval is
sought for $57.2 million of capital expenditure, and $41.3
million of operating expenditure – a total of $98.5 million – as
the council’s share of the $212.4 million budgeted to host the
America’s Cup. Subject to the Governing Body’s approval this
expenditure will be incorporated into the 2018-28 Long-term Plan, and the
financial delegation will be exercised by the council chief executive on behalf
of the Group.
Bringing forward other
programmed expenditure
52. The Governing Body has previously been advised that hosting the
America’s Cup and the Asia Pacific Economic Cooperation (APEC)
Leaders’ meeting in 2021 will require additional expenditure over and
above that needed to provide the essential infrastructure and base overlay for
AC36. This will ensure both the AC36 and APEC
events in 2021 are delivered to the world class level expected.
53. Accordingly, a range of other programmed capital projects and
renewals in the waterfront and broader downtown will need to be brought forward
into the first three financial years (2018/19 to 2020/21) of the 2018-28 Long
Term Plan (LTP). Given the scale of expenditure that could be involved, it is
proposed that decisions on what capital expenditure needs to be brought forward
should be taken on 31 May 2018 as part of LTP package. This will allow
councillors to assess the priority of this spending against other capital
priorities.
Ngā raru tūpono / Risks
54. In relation
to the provision of infrastructure for the 36th America’s Cup,
there are a number of high-level risks:
· Consenting
and delivery timeframes – the consenting and construction timelines are
very ambitious but the Wynyard Hobson proposal can be built in time, as long as
the Environment Court issues a decision in October;
· Public
confusion over which proposal is being progressed;
· Timely
engagement with iwi and mana whenua;
· Governance
arrangements to allow iwi and mana whenua to be part of decision-making;
· Cost
escalations;
· Contamination
levels
55. All these
risks are known and anticipated and have mitigation strategies attached to
them. The AC36 Infrastructure Alliance will be responsible for completing
the infrastructure in time and they have a detailed project plan, work streams,
governance and risk identification/mitigation in place.
Ngā koringa ā-muri / Next steps
56. The next step
is to lodge the application for the Wynyard Hobson proposal within a couple of
weeks of the Governing Body approval, likely to be around 6-10 April
2018.
57. The
construction Alliance will continue to investigate early works and begin
preparation for construction once the resource consent decision is issued.
Ngā
tāpirihanga / Attachments
|
No.
|
Title
|
Page
|
|
a⇩ 
|
Perspectives of the Wynyard Hobson proposal
|
17
|
Ngā kaihaina / Signatories
|
Author
|
Megan Tyler - Executive Officer CPO
|
|
Authorisers
|
Dean Kimpton - Chief Operating Officer
Stephen Town - Chief Executive
|
