More Funding For Five CBD Upgrades

Auckland City Council's Urban Strategy and Governance Committee today approved additional funding to complete five upgrades of streets and open spaces in the CBD.

The additional funding of up to $14.1 million and a contingency of up to $3.3 million will come from existing CBD targeted rate funds.

"To get the CBD to a standard people are proud of, and for it to be an easy and safe place to walk around, it is essential that we focus on using good urban design principles in our programme of work," says committee chairperson, deputy mayor Bruce Hucker.

"We're using higher quality materials more extensively in the CBD, with a greater emphasis on better pedestrian space, shelter and safety, and additional street furniture and art works."

In mid-2006, with the appointment of an urban design champion for the city, greater emphasis was placed on seeking high-quality urban design results across all council projects. Every CBD project is now required to have an urban design review and these revisions have led to:

* a greater focus on quality of materials

* more priority on pedestrian needs, including changing the approach to pavement surfaces and increasing pedestrian space, shelter and safety

* the use of multi-function poles in more streets within the CBD

* additional street furniture and art works.

There has also been an increase in:

* professional fees and construction costs corresponding to the increased scope of the projects

* estimated costs of temporary traffic management and temporary works to minimise disruption (learned from experience in projects completed to date).

Project cost estimates have been revised due to the unpredicted escalation of costs and changes to the projects' scopes since earlier cost estimates in 2004, such as needing to provide bigger tree pits and associated service diversions.

The increase in expenditure is spread across the five areas, as outlined in the following table.

Project 2004 budget estimate
($ million) Current
budget
($ million) Additional contingency budget
($ million) Total
increase
($ million)
Queen Street stage 4 3.5 5.9 0.2 2.6
St Patrick's Square 4.8 7.8 1.0 4.0
Victoria Street (Albert Street-Albert Park) 3.8 3.8 0.9 0.9
Albert Street 8.1 14.5 0.4 6.8
Beach Road 6.4 8.3 0.5 2.4
Total 26.6 40.3 3.0 16.7

Connal Townsend, who chairs the CBD Board and is chief executive of The Property Council of New Zealand, says excellent design is critical to creating a world-class CBD for Auckland.

"Overseas cities which have adopted excellent design principles have documented how it leads directly to improved economic and social performance," he says.

Last month the CBD Board approved the provision of additional funding to complete the five street and open space upgrades.

The targeted rate to fund development projects in Auckland's CBD was introduced for residential and non-residential ratepayers in the CBD in 2004. The revenue projections for this were updated in 2006 as part of Auckland City Council's Long-term Plan 2006-2016, with an increase from $144 million to $167 million.

After 12 years, the CBD targeted rate will be reduced to cover day-to-day operational costs, such as higher levels of street cleaning and maintenance. The additional funding from the CBD targeted rate will significantly speed up and expand the projects to revitalise Auckland's CBD as one of the world's most vibrant and dynamic business and cultural centres.

The targeted rate is applicable to CBD ratepayers only. These are the property owners who will benefit most from Auckland's CBD Into the Future strategy. The targeted rate is used exclusively for projects that will enhance the CBD.

ENDS

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