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Transport and
Infrastructure Committee
20 April 2023
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Update
on the city centre delivery programme
File No.: CP2023/00026
Te take mō te
pūrongo
Purpose of the report
1. To
provide an update on delivery of the city centre targeted rate programme.
Whakarāpopototanga matua
Executive summary
2. Auckland’s
city centre accounts for 20 per cent of Auckland’s gross domestic product
(GDP) and approximately 15 per cent of all jobs in Auckland. It is the location
of choice for multinational companies, as well as New Zealand’s largest
and most innovative companies. Two of New Zealand’s largest universities
are based here, with a combined student roll of over 50,000 students and 10,000
staff. The city centre is home to over 36,000 residents.
3. The
City Centre Masterplan, approved by the former Planning Committee, sets the
direction for the development of Auckland city centre.
4. The
city centre targeted rate contributes to the city centre programme, which
delivers on the vision of the City Centre Masterplan and is designed to
increase the capacity, efficiency and safety of travel, provide the enabling
infrastructure for growth and improve the attractiveness, safety and vibrancy
of the city centre.
5. Substantial
progress has been made over the last five years. The city centre targeted rate
has contributed to street and public space improvements such as Freyberg
Square, Albert Street, Karangahape Road enhancement, Quay Street, Te
Komititanga, Federal Street, Galway Street and Queen Street.
6. The
city centre targeted rate will fund over $200 million of capital investment in
the city centre from financial years 2024 to 2031. The focus of development is
now shifting to midtown, where Auckland Council, Auckland Transport, Watercare
and Eke Panuku will be delivering several significant projects in the midtown area
(surrounding Aotea Square). These will be delivered alongside CRL, utilities
projects and private sector development.
7. A
key focus is to ensure efficient movement for people and goods across the city
centre. Staff will be reporting separately on city centre transport at the
committee’s June 2023 meeting, in response to the Governing Body’s
resolution at its 23 March 2023 meeting.
8. In
November 2021, the previous Planning Committee endorsed Eke Panuku as the lead
agency for the implementation of the City Centre Masterplan. Eke Panuku is
leading the development of the City Centre Action Plan to support the
integrated implementation of the City Centre Masterplan. Eke Panuku will report
to the relevant committees on the City Centre Action Plan in quarter three of
2023.
9. Staff
will provide a presentation on the city centre targeted rate programme at the
Transport and Infrastructure Committee’s 20 April 2023 meeting.
Ngā tūtohunga
Recommendation
That the Transport and
Infrastructure Committee:
a) tuhi
ā-taipitopito / note the update on the delivery of the city centre
targeted rate programme.
Horopaki
Context
10. Auckland’s city centre supports both the region and
nation’s success through its concentration of talent, innovation, large-scale enterprise, investment, and
high-value services. For the year to March 2022[1]:
· Auckland’s city centre generated $26.6 billion in gross
domestic product (GDP), accounting for 20 per cent of Auckland’s GDP and
7.5 per cent of New Zealand’s GDP
· The city centre provided for over 145,000 jobs.
Approximately 15 per cent of Auckland’s jobs are based in the city
centre.
11. The city centre is home to two of New
Zealand’s leading universities – AUT and the University of Auckland, with a combined student roll of
over 50,000 students and over 10,000 employees[2].
12. Around half of the Deloitte top 200 New Zealand
companies are located in Auckland and around 30 per cent are based in the city
centre. They represent some of New Zealand’s largest and most innovative
companies. Businesses in the city centre are characterised by highly productive
knowledge intensive industries which draw talent to Tāmaki Makaurau from
across the region and internationally.
13. The
city centre is Auckland’s most dense urban
residential neighbourhood, home to over 36,000 residents. It will become
increasingly attractive as a place to live with access to jobs, entertainment,
culture and study options.
14. The
City Centre Masterplan sets the
direction for the development of Auckland city centre. The masterplan was first
adopted in 2012, refreshed in 2020 and approved by the former Planning
Committee at its March 2020 meeting (resolution PLA/2020/17). It is a
place-based document that gives effect to the
aspirations for the city centre in the Auckland Plan. The masterplan is shaped
by targets and direction from Te-Tāruke-ā-Tāwhiri:
Auckland’s Climate Plan.
15. Auckland City Council established the city
centre targeted rate in the 2004/2005 financial year to help fund the development and revitalisation of the city
centre. The rate applies to business and residential land in the city centre
area and is estimated to raise $24 million in financial year 2024. The city
centre targeted rate was extended in 2014 and again in 2021 as part of the
long-term plan. The current end date is the 2030/2031 financial year.
16. The city centre targeted rate can only be applied to
relevant activities that benefit property owners inside the rating area. The previous Auckland City Centre
Advisory Board (now the City Centre Advisory Panel), representing city centre
residents, businesses and other city centre interest groups, advises the
council on the investment priorities for the city centre targeted rate. The city centre targeted rate investment
portfolio was updated following advice from the Auckland City Centre Advisory
Board in August 2022 (CEN/2022/19).
Progress to date
17. Auckland Council, Auckland Transport, Watercare, Eke Panuku and the City
Rail Link are working together to deliver on the vision of the City Centre
Masterplan through a series of programmes designed to support the growth of the
city centre by:
· increasing the capacity, efficiency and safety of travel for people
to access employment, social and cultural opportunities
· providing the enabling infrastructure for growth
· improving attractiveness, safety and vibrancy.
18. The
City Rail Link will catalyse the regeneration of the city centre. The city
centre programme is aligned to each significant phase of the CRL project,
building on its benefits and development opportunities
as each phase reaches completion. The programme also responds to other
significant investment activity in the city centre and major events.
19. The
city centre targeted rate funds a significant part of the city centre
programme, contributing to street and public space improvements, as well as
contributing to the vibrancy of the city centre through
activation, events, and marketing activities.
20. The
delivery of the city centre programme is well underway. The
city centre targeted rate has contributed to street
and public space improvements such as Freyberg Square, Albert Street,
Karangahape Road enhancement, Quay Street, Te Komititanga, Federal Street
Upgrade, Galway Street and Queen Street.
21. A
full schedule of major projects delivered, including
projects funded by the city centre targeted rate, is included in Attachment A.
22. The
delivery of the city centre programme is an enabler for
the private sector to invest in the city centre, through investment in
commercial properties and housing, economic development, provision of goods and
services, job creation and employment.
23. Private developers are continuing to invest in the city centre. Major
private development recently completed include Commercial Bay, Hotel Britomart,
Barrington Building and Old Sofrana House in Britomart, HomeGround by Auckland
City Mission and The Pacifica apartments.[3]
Tātaritanga me ngā
tohutohu
Analysis and advice
Next phase of transformation
24. The
city centre targeted rate will fund over $200 million of capital investment in
the city centre, from financial years 2024 to 2031. The focus of development is now
shifting to midtown.
25. The
midtown
area is set to become a key transport hub with the opening of the City Rail
Link Te Waihorotiu Station, which will play a pivotal role in the
transformation of the area and the city centre.
26. Auckland
Council, Auckland Transport, Watercare and Eke Panuku will be delivering
several significant projects in the midtown area (surrounding Aotea Square)
alongside CRL, utilities providers and the private sector. In particular, the programme will:
· improve streets around the new CRL station to support safe and
effective movement for the anticipated increase in the number of people in the
area (while still enabling access for vehicles needed to support business
operations)
· improve the frequency and reliability of bus services into the city
centre, and improve the connectivity between bus and rail (Auckland Transport)
· increase wastewater and power capacity to support anticipated growth
and private sector investments (Watercare and Vector).
27. At
its 23 March 2023, the Governing Body approved the increased allocation of city
centre targeted rate budget towards the Te Hā Noa project and the award of
the construction contract (GB/2023/31). Construction for the Te Hā Noa project started on 11 April
2023. Other
city centre targeted rate funded projects underway include the Myers Park
Underpass and the Wai Horotiu Queen Street project.
28. City
centre targeted rate projects currently in planning include the Victoria
Quarter programme and High Street, Hobson Street and Emily Place upgrades. Project planning will be closely coordinated with other significant
projects in the city centre led by AT including the Karanga-a-Hape Station
neighbourhood and bus improvement programme, City Centre Bus Improvements and Beaumont
Street-Westhaven Drive Upgrade, and projects led by Eke Panuku including
Westhaven and surrounds, Viaduct and Central Wharfs, and Te Ara Tukutuku.
29. A
schedule of projects within the city centre programme, including projects
funded by the city centre targeted rate, is included as Attachment B.
30. The
programme delivery will continue to coordinate with upcoming private sector developments to achieve
quality urban outcomes, including the Symphony Centre and Bledisloe House by
MRCB, the New Zealand International Convention Centre, Skyworld, St James
Theatre and Apartments.
31. Auckland
Council recognises the significant impact that construction has on the
surrounding businesses and residents. Staff have developed a comprehensive development
response programme to support properties, businesses and residents impacted by
construction, building on lessons learned from recently completed projects.
32. In
addition to capital infrastructure delivery, Auckland Council partners with
residents’ groups, businesses and business associations to deliver programmes which
help to ensure that the city centre is a vibrant, attractive and safe place for
Aucklanders.
33. A
recent example is the delivery of the Christmas 2022 programme, in partnership
with Heart
of the City and Auckland Live. This featured the Christmas pavilion in Te
Komititanga, activations along Queen Street, and Lego Christmas at Aotea
Square. This programme contributed to pedestrian traffic and total spend in the
Queen Street area almost reaching the record high of December 2019, before
COVID-19 restrictions. Eighty-one per cent of attendees surveyed said that
"events like the Christmas pavilion make me feel proud to be an
Aucklander".
34. The
city centre targeted rate programme will be reviewed as part
of the next long-term plan. Staff will be seeking advice from the City Centre
Advisory Panel to support the review. Future planning for the city centre
targeted rate programme will need to respond to key strategic drivers including
the development of the Downtown carpark, Ports of Auckland land, Waitematā
Harbour connections and Auckland Light Rail.
35. In
November 2021, the previous Planning Committee endorsed Eke Panuku as the lead
agency for the implementation of the City Centre Masterplan 2020 by adding the
city centre to the Eke Panuku Transform Waterfront location (PLA/2021/136). A
key deliverable for Eke Panuku as the lead agency is working with a
cross-agency team to develop the City Centre Action Plan, to articulate what
the council group will do, and when, to deliver on the City Centre Masterplan.
It will respond to the pressing issues and future opportunities for the city
centre, including the impact of COVID-19, climate change, market and economic
trends, and significant catalyst opportunities such as the CRL and Ports of
Auckland land.
36. Eke
Panuku will report to the relevant committees on the City Centre Action Plan in
quarter three of 2023.
Keeping the city centre moving
37. At
its 23
March meeting for the funding and supplier
recommendation for Te Hā Noa - Victoria Street Linear Park report, the Governing Body resolved (GB/2023/31) to:
· tono / request that officers work with Auckland Transport and the City Centre
Advisory Panel to ensure that city centre works associated with this project
are timed so that efficient movement for people
and goods is maintained across the city centre, including east-west vehicle
movement, and report back to the Transport & Infrastructure Committee at an
appropriate time on how this will be achieved.
38. Staff
will be reporting separately to the Transport and Infrastructure Committee on
the above item at its June 2023 meeting.
Working in partnership
39. The
City Centre Advisory Board was established in 2004 to advise the council on the
use of the city centre targeted rate. In December 2022, the Governing Body
endorsed the Mayor’s proposal to establish a City Centre Advisory Panel for the 2022-2025 term.
Panel members are made up of representatives from a cross section of sectors,
iwi, businesses, universities and residents in the city centre. The lead agency
Eke Panuku are in the process of establishing the panel for this term and plan
to start panel meetings in May 2023.
40. The
terms of reference for the panel include providing advice based on sector and
industry expertise and lived experience to help the council group set strategic
direction and priorities to deliver on the potential of the city centre as a thriving, vibrant centre
for all, as well as on the investment priorities of the city centre targeted
rate.
41. The
refresh of the City Centre Masterplan in 2020 was developed with the Mana
Whenua Kaitiaki Forum Culture and Identity pou. Ngāti Whātua
Ōrākei has been a member of the City Centre Advisory Panel since its
inception and advises on the investment priorities of the city centre targeted
rate. Auckland Council also partners with mana whenua throughout the planning
and delivery of projects.
42. Staff
seek
insights and work in partnership with others in the city centre, such as the
two business associations (Heart of the City and the Karangahape Business
Association) on key issues such as safety, promotion and events, and to respond
to the needs of retail and hospitality businesses in the way we deliver our
programmes.
43. Staff also work closely with the City Centre Residents Group and
have recently completed a survey[4]
to better understand the experiences of residents living in the city centre,
which helps to inform council group decisions.
Tauākī whakaaweawe
āhuarangi
Climate impact statement
44. The
city centre targeted rate programme will contribute to the reduction of
emissions by enabling mode shift towards public transport and active travel as
part of the city centre vision.
45. The
programme supports employment and housing to be concentrated in the area of
Auckland that is most accessible by walking, cycling and public transport. This
reduces the need to travel and addresses the single biggest cause of greenhouse
gas emissions in Auckland.
46. The programme also contributes to climate change adaptation through
increased native trees and planting, providing shade and shelter and enabling
city centre streets to cope with projected hotter temperatures and heavier
rainfall.
Ngā whakaaweawe me
ngā tirohanga a te rōpū Kaunihera
Council group impacts and views
47. Projects
in the city centre are being delivered by several council group or
council-funded organisations, including Auckland Council, Auckland Transport,
Watercare and Eke Panuku, as well as City Rail Link Limited.
48. The
council group continues to work collaboratively for the planning and delivery
of the programme to ensure alignment and to minimise the level of disruption to
city centre communities.
49. In November 2021, the previous Planning Committee endorsed Eke
Panuku as the lead agency for the implementation of the City Centre Masterplan
2020 by adding the city centre to the Eke Panuku Transform Waterfront location
(PLA/2021/136). This lead agency role for implementation of the masterplan will
mean the establishment and leadership of city centre matrix teams drawn from
across Auckland Council, Auckland Transport, Tātaki Auckland Unlimited and
Eke Panuku.
Ngā whakaaweawe
ā-rohe me ngā tirohanga a te poari ā-rohe
Local impacts and local board views
50. The
city centre sits within the Waitematā Local Board area. The city centre
programme contributes to delivery of the outcomes of the Waitematā
Local Board Plan 2020.
51. The Waitematā Local Board receives
regular updates on city centre projects through memorandums, monthly workshops,
and quarterly reports.
Tauākī whakaaweawe
Māori
Māori impact statement
52. The refresh
of the City Centre Masterplan in 2020, was developed with Mana Whenua Kaitiaki
Forum Culture and Identity pou.
53. Mana whenua
partnership occurs as part of the development and delivery process in city
centre projects through regular council group Mana Whenua hui and forums, and
other project specific hui or partnerships.
54. The city
centre targeted rate programme contributes to Māori outcomes by
highlighting the unique cultural heritage of Tāmaki Makaurau through
incorporating Māori design elements and achieving better environmental
outcomes for Tāmaki Makaurau, which is a shared priority of Auckland
Council and mana whenua. A notable recent example is the collaborative design
partnership for the Downtown Programme.
Ngā ritenga
ā-pūtea
Financial implications
55. Auckland
Council’s investment programme, led by the Development Programme Office,
is predominantly funded by the city centre targeted rate. The rate funds capital
and operational expenditure.
56. A
scheduled of city centre targeted rate funded projects and the respective
status, from 2017 to 2031, is included as Attachment C.
57. The city centre targeted rate expenditure for financial 2022/2023 is
shown below in Table 1.
Table 1: City centre targeted
rate expenditure for financial year 2022/2023
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Budget type
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2021/2022
expenditure
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Capex
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$17,338,000
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Opex
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$4,879,000
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Total
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$22,217,000
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58. Key
achievements for the financial year (ended 30 June 2022) that are supported by
the city centre targeted rate are outlined below.
· The completion of Federal Street between Wellesley Street and
Mayoral Drive, and the Sale Street - Te Maharatanga O Ngā Wai placemaking
project. Construction of the Wai Horotiu Queen Street project, Myers Park
Underpass, and Galway Street between Commerce Street and Te Komititanga.
Planning for Te Hā Noa Victoria Street project.
· A major activation and promotional programme was delivered to help
attract Aucklanders back to the city centre. Developed in collaboration with a
wide range of city centre partners, highlights included Christmas at Te
Komititanga, the City of Colour festival and Matariki ki te Manawa.
· Conversations led by Auckland Council with thought leaders,
academics, and industry representatives about the potential of the city centre,
barriers to change and opportunities to lead towards a sustainable future as
part of Te whakahou i tō tātou pokapū tāone: Regenerating
our city centre.
· Increased destination marketing, initiatives to improve perceptions
of safety in the city centre, support for expanded outdoor dining in
partnership with Heart of the City and Karangahape Road Business Association,
research to increase understanding of the experiences of cfity centre
residents, and increased activation for residents.
59. The
city centre targeted rate investment portfolio was updated following advice
from the Auckland City Centre Advisory Board in August 2022 (CEN/2022/19). From financial years 2024 to 2031, the city centre targeted rate
will fund over $200 million of capital investment in the city centre.
Ngā raru tūpono me
ngā whakamaurutanga
Risks and mitigations
60. Key risks
associated with the delivery of the city centre targeted rate programme are
outlined in Table 2.
Table 2: City centre programme
risks and mitigations
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Key risks
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Mitigation
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Disruption
to transport operations and public transport, resulting in the reduction of
service levels, reliability and congestion.
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Construction
staging is planned to ensure property access, service and loading will
continue to be available, and public transport and traffic can continue to
operate effectively.
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Disruption
to neighbouring businesses and residents, resulting in hardship,
dissatisfaction and opposition.
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Continue to
improve and deliver development response programme to support businesses and
residents impacted by construction.
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Lack of
community support and engagement for programme delivery, resulting in loss of
trust and confidence in Auckland Council.
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Commitment to
open and frequent communication, early engagement and consultation for
project planning and delivery.
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Financial
challenges, limiting the amount of additional investment and pace of
delivery.
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Prioritisation
of capital investment is underway across the council group in response to
financial challenges. The city centre targeted rate will continue to be used
to fund works in the city centre.
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Misalignment
of investment, planning and delivery between council group, the government
and the private sector, resulting in rework, cost increase and excessive
disruptions.
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Council group
continuing to work collaboratively to plan and deliver.
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Ngā koringa ā-muri
Next steps
61. Staff will
give a presentation at the Transport and Infrastructure Committee’s 20
April 2023 meeting.
62. Delivery of
the city centre programmes will continue, with the next phase of Wai Horotiu
Queen Street, from Custom Street to Shortland Street, starting in mid-2023. The
Myers Park Underpass project is anticipated to be complete in late-2023.
Ngā tāpirihanga
Attachments
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No.
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Title
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Page
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a⇩
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Completed city centre projects
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13
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b⇩
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City centre programme
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15
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c⇩
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City centre targeted rate funded project status
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17
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Ngā kaihaina
Signatories
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Author
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Jenny Larking - Head of City Centre Programmes
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Authoriser
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Barry Potter - Director Infrastructure and
Environmental Services
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