|
City Centre
Advisory Panel
11 September
2023
|
|
City Centre Targeted Rate investment
portfolio
File No.: CP2023/12765
Te take mō te
pūrongo
Purpose of the report
1. To receive an update on the delivery of the city centre targeted
rate investment portfolio.
2. To note that staff intend to seek advice at future meetings on the
investment priorities of the city centre targeted rate, to inform the review of
the portfolio as part of the long-term plan.
Whakarāpopototanga matua
Executive summary
3. The
city centre targeted rate was established to help fund the development and
revitalisation of the city centre. The rate applies to businesses and
residential land in the city centre and is estimated to
raise $25.7 million in financial year 2024.
4. The
city centre targeted rate has made significant contribution to the
transformation of Auckland city centre, delivering on the City Centre
Masterplan vision.
5. The
total expenditure for the city centre targeted rate in financial year 2022/2023
was $15.1 million and included several key achievements as listed below. The
annual report for 2022/2023 will be circulated separately as it was not
completed by the time the agenda went to print.
· Completion
of Galway Street upgrade, from Commerce to Queen Street, and Wai Horotiu Queen
Street, from Mayoral Drive to Shortland Street.
· Construction
underway for Te Hā Noa Victoria Street and Myers
Park underpass.
· Commenced
planning for the High Street district and Victoria Quarter programme
frameworks.
· Commenced
design development for Emily Place improvements and Nelson Street slip-lane
upgrade.
· Delivery
of the activation and placemaking programme, including Christmas in Te Komititanga, Matariki ki te Manawa, and supporting
an expanded public programme in other festivals. The programme also focused on
areas impacted by construction and to newly completed public spaces such as Wai
Horotiu Queen Street, Myers Park and midtown.
· Completion
of the city centre residents' survey on residents’ experiences of living
in the inner city.
6. The
key focus for the 2023/2024 will be:
· Completion
of Myers Park underpass and the last phase of Wai Horotiu Queen Street by the
end of 2023
· Engaging
with the community on the High Street district and Victoria Quarter programme
framework
· Continue
planning for Emily Place and Nelson Street slip-lane
· Progress
the mid-town programme which will provide public realm and infrastructure
improvements to support ease of movement around Wai Horotiu station and the
regeneration of the area. This includes the development response and
business support programme to mitigate the impacts of construction.
· Continue
construction for Te Hā Noa on Victoria Street, with the section west of
Queen Street scheduled to complete in mid-2024.
7. In
March 2023, the Governing Body increased city centre targeted rate funding for
the Te Hā Noa Victoria Street project from $10 million to $34.2 million,
allowing construction to begin so it would align with other projects in the
midtown area.
8. The City Centre Advisory Panel provides advice on the investment
priority of the city centre targeted rate portfolio every three years as part
of the long-term plan process. Staff will seek advice
from the City Centre Advisory Panel at future meetings to inform the
review of the portfolio as part of the long-term plan.
Ngā tūtohunga
Recommendation/s
That the City Centre Advisory
Panel:
a) tuhi
ā-taipitopito / note the update on the city centre
targeted rate investment portfolio
b) tuhi
ā-taipitopito / note that staff intend to seek advice at
future meetings on the investment priorities of the city centre targeted rate,
to inform the review of the portfolio as part of the long-term plan.
Horopaki
Context
9. The
City Centre Masterplan sets the
direction for the development of Auckland’s city centre. The masterplan
was 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.
10. The
city centre targeted rate was established in 2004/2005 financial year to help
fund the development and revitalisation of the city centre and aims to enhance
the city centre as a place to work, live, visit and do business. It achieves
this by providing a high-quality urban environment, promoting the competitive
advantages of the city centre as a business location, and promoting the city
centre as a place for high-quality education, research, and development.
11. The
city centre targeted rate applies to business and residential land in the city
centre area and is estimated to raise $25.7 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. The rate can only be applied to relevant activities that
benefit property owners inside the rating area.
12. The
city centre targeted rate has made significant contribution to the
transformation of Auckland city centre, delivering street and public space
improvements such as Freyberg Place, Albert Street, Karangahape Road, Quay
Street, Te Komititanga, Federal Street, Galway Street and Queen Street.
13. The rate also funds programmes which help to ensure that the city
centre is a vibrant, attractive and safe place for Aucklanders. Recent examples
include the Christmas 2022 programme, featuring 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 agreed that
"events like the Christmas pavilion make me feel proud to be an
Aucklander".
Tātaritanga me ngā
tohutohu
Analysis and advice
The City
Centre Advisory Panel advises on investment priorities
14. The City Centre Advisory Panel provides advice
on the investment priority of the city centre targeted rate portfolio every
three years as part of the long-term plan process.
15. The investment priority established as part of the 2021-2031
long-term plan for the city centre targeted rate investment portfolio is
focused on the following key transformational moves from the City Centre
Masterplan:
· Waihorotiu
Queen Street valley and rapid transport-oriented development such as
development around the Te Waihorotiu and Karanga-a-Hape City Rail Link
stations, supporting growth around the stations and creating
pedestrian-priority streets, improving public spaces, providing safe access
around the stations and reinforcing the Queen Street valley as Auckland’s
cultural, commercial and retail heart.
· Green
links – investing in ways to connect our green open spaces and respond to
climate change by increasing planting and canopy cover in the city centre and
supporting sustainable development.
· City
to the villages – better connections between the city centre and city
fringe to provide safe, accessible, and enjoyable journeys to and from the city
centre and supporting planning for the development of underdeveloped areas on
the immediate fringes of the city centre.
· Investment
in revitalisation, activation, and destination marketing programmes, supporting
a lively, healthy and inviting environment for people that reflects our
city’s culture and identity and encourages people into the city centre.
· Promote
residential growth, enhance quality of life, and boost well-being for city
centre residents, and ensure that the city centre reflects Tāmaki
Makaurau's unique identity and culture.
16. The previous update of the city centre targeted
rate investment portfolio following advice from the Auckland City Centre
Advisory Board was in August
2022 (CEN/2022/19).
Increased
allocation of city centre targeted rate to Te Hā Noa Victoria Street
17. Auckland Council is facing significant financial challenges. The
cost of recovery from the January 2023 flood and Cyclone Gabrielle along with
cost increases for the City Rail Link added further budget pressure to the
council’s financial position over the next few years.
18. Capital investment is being carefully prioritised across the council
portfolio, as part of the Annual Budget 2023/2024 and the10-year budget to
address these significant financial challenges.
19. At its 23
March 2023 meeting, the Governing Body approved an increased allocation of city centre targeted
rate budget towards the Te Hā Noa – Victoria Street project from $10
million to $34.2 million (resolution number GB/2023/31).
This decision enabled construction to begin in April 2023 ahead of the council
completing its capital investment prioritisation process.
20. As the City Centre Advisory Panel was not yet in place, its views
were not able to be obtained ahead of the Governing
Body decision on 23 March 2023.
21. The
Victoria Street linear park is a key transformation move in the City Centre
Masterplan, specifically Transformational Move 6: The Green Link.
22. Construction of Te Hā Noa Victoria Street was required to align
with construction of the City Rail Link streetscape and other projects in the
area. Delaying construction would result in increased construction costs,
extend the overall duration of construction in midtown, risk digging up the
street twice and negatively impact neighbouring properties, businesses, and
residents.
23. The
increased allocation will have no material impact on city centre targeted rate funded
projects and or activities that are planned or underway in the next two to
three years, however, it may require the re-prioritisation of projects and or
activities funded beyond this period.
24. In addition
to the budget allocation to Te Hā Noa Victoria Street, new cost pressures
and inflation may impact the scope of the city centre targeted rate portfolio
in future years.
25. Staff will seek advice from the City Centre Advisory Panel at
future meetings to inform the review of the portfolio as part of the long-term
plan.
Highlights
for financial year 2022/2023
26. Significant progress continues to be made in the delivery of the city centre
targeted rate portfolio. A schedule of capital projects funded by the city
centre targeted rate, is included as Attachment A.
27. The
city centre targeted rate annual report for financial year 2022/2023 will be
circulated separately as it was not completed by the time the agenda went to
print.
28. The total expenditure for the city centre
targeted rate in financial year 2022/2023 is $15.1 million. The breakdown of
expenditure by activities is shown in figure 1.
Figure 1 - breakdown of expenditure by
activities
29. Key achievements for the financial year ended 30 June 2023,
supported by the city centre targeted rate are summarised below.
Upgrading
public spaces
30. We continue to build on our momentum to create attractive,
people-centric public spaces, and have achieved several exciting milestones
during the financial year 2022/2023.
· Completion of Galway Street in February 2023, transforming the road
corridor into an inclusive and safe shared space for people with accessibility
needs, and for people walking, riding bikes or scooters.
· Completion of Wai Horotiu Queen Street from Mayoral Drive to Shortland
Street in November 2022, delivering a people-focused, green and spacious street
that is safer for walking, cycling and public transport. The final phase from
Shortland to Custom Street began in August 2023 and is set for November 2023
completion.
· Construction is well underway for the Myers Park underpass and will
likely be completed in spring 2023. Once complete, the underpass will be
transformed from a carpark to a welcoming public space, wetland garden and
improved connection to Queen Street.
· Construction started in the Te Hā Noa project on Victoria
Street in April 2023. Once complete, this will create a thriving environment in
Victoria Street, for movement, rest and recreation, while welcoming thousands
of people arriving through CRL’s Te Waihorotiu Station (Aotea).
· Started the High Street district framework, a place-based investment
programme for the High Street district that will deliver a people-priority area
that enhances its unique heritage and history, as well as contribute to the experience
and sense of community. Engagement with the community will commence in late
2023.
· Started the Te kōtui i te uru west city stitch investment
programme, for the densest residential neighbourhood in New Zealand, to
realise the aspirations for this area in the City Centre Masterplan for a
vibrant and desirable residential neighbourhood, that is safe and well
connected to the city centre.
· Progressing the concept design for Emily Place, to deliver an
attractive and safe public space that response to community needs in the area.
Community engagement is underway to ensure that the design reflects community
aspirations for the space.
· Commenced design development for the Nelson Street slip-lane
project, to improve pedestrian connections, safety and amenity to deliver an
attractive neighbourhood street. The delivery of the works is scheduled to
start in 2024.
City
Centre Residents’ Survey
31. The city
centre residents’ survey was completed at the
end of 2022, to get an updated understanding of residents’ experiences of
living in the inner city. The survey highlighted a continuing challenge around
public safety in the wake of the COVID-19 pandemic.
Activation
and Placemaking
32. We
have delivered activation and placemaking programmes in partnership with
community, businesses, creatives and the wider council whānau, highlights
include:
· Christmas in Te
Komititanga, featuring the Christmas pavilion and more than 40 performances
across 22 days, delivered in partnership with Heart of the City
· Matariki
ki te Manawa with more than 25 free public events, installations, and
activities over three weeks, the Pakiata projections on the Chief Post Office
building and Tūrama light installation along Queen Street
· Support
for expanded public programming in festivals such as the Auckland Pride
Festival, Art in the City, Africa Month, and the Korean Culture Festival.
33. We also delivered activation and placemaking
programmes to support areas impacted by construction, and to celebrate new
public spaces that are completed.
· Wai
Horotiu Queen Street: Christmas activations in the Queen Street valley were
designed to attract foot traffic to experience the newly completed Wai Horotiu
path. This focus on Queen Street was also a feature of Matariki and other
festival programming.
· Myers
Park: part of the development response approach for the Myers Park underpass
project included an activation programme targeted to city centre residents and
young families, to keep the park vibrant and attractive during construction.
· Midtown’s
comprehensive development response approach also includes an activation, street
health and placemaking programme. The vacant spaces programme brings lighting
and art to enliven vacant storefronts.
Key focus for financial year 2023/2024
34. Completion of the Myers Park Underpass and Wai Horotiu Queen Street
final stage by the end of 2023.
35. Construction of the Te Hā Noa Victoria Street project will
continue.
36. Community engagement for High Street district and Victoria quarter
investment programme.
37. Continue design for Emily Place and Nelson Street slip-lane with
community input.
38. Initiate the design for Service Lane (Mills and Exchange Lane)
project.
39. Continue to deliver the activation and placemaking programme to
enhance vibrancy and safety of the city centre.
Our
activity needs to be integrated to minimise disruption and negative impacts
where possible
40. A key focus will be on regeneration of midtown, with various
projects delivered by Auckland Council, Auckland Transport, Watercare, and Eke
Panuku alongside the City Rail Link, utilities, and private development.
41. Auckland Council’s Development Programme Office leads the
programme coordination to ensure that construction is planned to minimise
disruption through a joined-up communication and on-street engagement for
customers. We have increased our focus on street health, such as cleaning and
maintenance, safety, and security, to activation and promotion to attract
people to the area during construction.
42. We will continue to deliver the business support programme in
midtown, to help businesses grow resilience, adapt to the changing environment,
and prepare to take advantage of new spaces following construction.
Tauākī whakaaweawe
āhuarangi
Climate impact statement
43. Programmes in
the city centre targeted rate portfolio will continue to consider and mitigate climate
change through sustainable procurement, mitigation of heat islands, using
recycleable and reusable materials, providing opportunities to improve water
treatment, greening the environment (for example, more trees and planters),
monitoring and evaluating environmental impacts and using compact and
low-carbon urban design, with a view to whole-of-life costs.
44. Many of the
projects achieved through the city centre targeted rate contribute to the goals
of Te Tāruke-ā-Tāwhiri: Auckland's Climate Plan, in particular
the built environment and transport priority areas. Projects that contribute to
these areas include the Wai Horotiu Queen Street project and Te Hā Noa
Victoria Street that deliver safety improvements to walking, cycling and micro
mobility, as well as new trees and planting.
Ngā whakaaweawe me
ngā tirohanga a te rōpū Kaunihera
Council group impacts and views
45. Projects in
the city centre targeted rate investment portfolio are led by Auckland
Council’s Development Programme Office. The planning and delivery of
portfolio are coordinated with the council group or council-funded
organisations, including Auckland Council, Auckland Transport, Watercare, Eke
Panuku and City Rail Link Limited, as well as private developments to ensure
alignment and to minimise the level of disruption to city centre communities.
46. 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 meant 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
47. The Waitematā Local Board has previously been
supportive of the city centre targeted rate portfolio and has co-funded several projects (such as the Myers Park
underpass). The City centre targeted rate investment portfolio contributes to
the Waitematā Local Board plan:
· Outcome
1: Māori are empowered, and their
identity and culture is visible
· Outcome 2: Connected communities that are inclusive,
accessible, and equitable
· Outcome 3: High quality urban development that has
accessible, versatile, and sustainable public and private spaces
· Outcome 4: Outcome 4: Waitematā is
future-focused, green, and resilient to climate change
· Outcome 5: Sustainable transport network that is
safe and accessible
· Outcome 6: Waitematā businesses are
sustainable, innovative, and prosperous.
48. The Waitematā Local Board receives regular updates
through memorandums, monthly workshops, and reports at its business meetings on
city centre targeted rate portfolio projects.
Tauākī whakaaweawe
Māori
Māori impact statement
49. The city
centre targeted rate is being used to contribute to Māori outcomes by
highlighting our unique cultural heritage by incorporating Māori design elements
and achieving better environmental outcomes for Tāmaki Makaurau, which is
a shared priority of Auckland Council and mana whenua.
50. 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.
51. Mana whenua
consultation occurs as part of the development and delivery process in city
centre projects through the monthly Infrastructure and Environmental Services
Mana Whenua Kaitiaki Hui and other project specific hui or partnerships.
52. Māori
outcomes delivered by the city centre targeted rate portfolio are managed at
the project level, with each project responsible for delivering on their
individual outcomes.
Ngā ritenga
ā-pūtea
Financial implications
53. The city
centre targeted rate forms an important part of city centre spend,
complementing general rates as set out in the long-term plan 2021-2031. The rate can only be applied to relevant activities that benefit
property owners inside the rating area.
54. At
its 23
March 2023 meeting, the Governing Body approved an increased allocation of
city centre targeted rate budget towards the Te Hā Noa – Victoria
Street project from $10 million to $34.2 million (resolution number GB/2023/31).
55. In addition
to the budget allocation to Te Hā Noa, new cost pressures and cost
inflation may impact on the scope of the city centre targeted rate portfolio in
future years.
Ngā raru tūpono me
ngā whakamaurutanga
Risks and mitigations
56. Key
risks associated with the delivery of the city centre targeted rate programme
include:
|
Key risks
|
Mitigation
|
|
Construction
disruption to transport operations and public transport, resulting in the
reduction of service levels, reliability and congestion.
|
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.
|
|
Disruption
to neighbouring businesses and residents, resulting in hardship,
dissatisfaction and opposition.
|
Continue to
improve and deliver development response programme to support businesses and
residents impacted by construction.
|
|
Lack of
community support and engagement for programme delivery, resulting in loss of
trust and confidence in Auckland Council.
|
Commitment to
open and frequent communication, early engagement and consultation for
project planning and delivery.
|
|
Financial
challenges, limiting the amount of additional investment and pace of
delivery.
|
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.
|
|
Misalignment
of investment, planning and delivery between council group, the government
and the private sector, resulting in rework, cost increase and excessive
disruptions.
|
Council group
continuing to work collaboratively to plan and deliver.
|
Ngā koringa ā-muri
Next steps
57. Staff will
continue to provide updates on the city centre targeted rate portfolio
programme to the panel
58. Staff will seek advice from the City
Centre Advisory Panel at future meetings to inform the review of the portfolio
as part of the long-term plan.
Ngā tāpirihanga
Attachments
|
No.
|
Title
|
Page
|
|
a⇨
|
Schedule of capital projects funded by the city centre
targeted rate
|
|
Ngā kaihaina
Signatories
|
Author
|
Jenny Larking – Head of City Centre Programmes
|
|
Authorisers
|
John Dunshea - General Manager Development Programme
Office
Barry Potter - Director Infrastructure and
Environmental Services
Simon Oddie – Lead Officer
|
