Nelson Mayor Nick Smith says he is disappointed but not surprised that Port Nelson Limited and Cawthron Institute have been unable to commit to progressing the proposed Science and Technology Precinct given the sharp increase in interest rates and construction costs.

“The more than doubling of interest rates has had a massive impact on the commercial viability of a development estimated to cost $135 million between the two organisations. Other factors leading to this decision not to proceed include the reduction in demand for office space with more people working from home, the sharp rise in construction costs, and the difficult trading environment affecting the profitability of both organisations.

“I am disappointed but also understand the importance of both organisations remaining financially sound and such projects having to be commercially viable.”

Through its Long Term Plan 2021-2031, Nelson City Council consulted the public on supporting the Science and Technology Precinct. In 2021, it was decided this support would take the form of a $1.5m capital grant to Cawthron and a $1.2m capital grant to Port Nelson Limited. To further assist the development, stormwater pipes from under the Wildman Avenue site were relocated to provide a clean site for development.

The capital grants were conditional on the project proceeding and, as this has not occurred, Council has not drawn down this debt. However, the infrastructure work to relocate and upgrade the stormwater pipes has taken place at a total cost of $3.4m.

Mayor Nick says there is a conversation to be had with Port Nelson about this work and how it has benefited Port-owned land.

"While there is a wider community benefit in flood resilience from the increased capacity of these pipes, we do need to have further discussions because there has also been some benefit to this land."

Mayor Nick says the importance of both Port Nelson and Cawthron can’t be overstated and the continued collaboration of these organisations is key for Nelson’s economic growth.

“I am heartened that the Cawthron Institute remains fully committed to Nelson and the expansion of its laboratory and institutional capabilities. It is New Zealand’s largest independent institute, critical to Nelson’s status as New Zealand’s seafood capital and to the development of the blue economy. My hope is that Cawthron will continue to grow and that it will invest in the development of its Halifax Street site. I am also pleased that the Port will move to facilitate alternative development opportunities on the Wildman site.”

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