120 02 May 2017

City Development Committee

17 March 2017

File: (17/513)

Report no: CDC2017/2/106

General Managers' Report

Purpose of Report

1. The purpose of this report is to provide the Committee with updates on a number of projects that it has previously identified. This will be done on a regular basis.

Recommendation

It is recommended that the Committee notes the updates contained in the report.

Background

2. At the beginning of the 2013-2016 triennium, the Chair of City Development asked for a General Managers’ report to be provided at each meeting. This would mainly be for update purposes but from time to time could include items for decision making.

Discussion

3. An update of a number of projects is provided below. The items to be included were discussed by the City Development Committee and may change from time to time.

City Wide and CBD Remissions Policy and Funding.

4. A City Wide and a CBD Remissions policy have been in operation since 1 July 2012.

5. As of this financial year to date – 1 July 2016 to 31 March 2017 27 new applications have been received and funding provided as follows:

CBD Remissions	Appns	Approved	Declined
A new apartment development of at least 8 attached residential dwelling units OR of at least 500m2 in floor area	1	1	0
A new commercial development or new building extension of at least 500m2 floor area	2	2	0
A new development with a mix of apartments and commercial space of at least 500m2 in floor area	1	1	0
Total CBD	4	4	0

City Wide Remissions – anywhere in the City including the CBD	Appns	Approved	Declined
A medium or high density residential development	18	18	0
New non-residential building or building extension of at least 500m2	5	5	0
A conversion of a building from any use to residential apartments	0	0	0
Total City Wide	23	23	0
Total All Policies	27	27	0

Fee type remitted 1 July 2016 – 31 Mar 2017	Amount
Rates	$166,747
Development contributions	$ 81,453
Reserve contributions	$ 218,261
Resource consent fees	$ 49,986
Building consent fees	$ 253,360
TOTAL	$769,807

Total Fees Remitted Annually From 1 July – 30 June
FY2012-2013	$159,000
FY2013-2014	$873,000
FY2014-2015	$712,000
FY2015-2016	$548,000
FY2016-2017 (9 months)	$769,807

6. The figures in the above table reflect the amount of applications for remissions received and not the total number of developments being built.

7. The current remissions end as at 30 June 2017. Additional remissions are proposed for another 3 year period and are being consulted on in the Annual Plan process.

Riddiford Gardens

8. Physical works commenced in November 2015 on Phase 2 of the Riddiford Gardens Landscape Upgrade project, starting with development of the north and west sides of the Administration Building.

9. The work on the front of the Administration Building and the electrical sub-station was largely completed within a very tight deadline to enable the building to open to customers on 22 March 2016.

10. All of the remaining work for Phase 2 has now been completed with the new toilet pavilion operational at the end of February.

11. Concept design options for Phase 3 work were prepared and considered by Council in confirming the 2016/17 budget. A meeting with key stakeholders was held on 12 July 2016 to consider the concept design before the detailed design commenced. Phase 3 design has been the subject of value engineering before being forwarded in mid-April to Naylor Love for pricing.

12. SLT has agreed that the Phase 3 works will be negotiated with Naylor Love, the incumbent contractor, to ensure continuity and coordination with the Events Centre work. As works are not expected to commence on Phase 3 until May, a carryover has been forecasted in the latest financial report.

Town Hall and Events Centre

13. Since the last report, a good portion of the wall between the Town Hall and the Administration Building has been installed, the atrium/foyer structure has been constructed and some 80 cubic meters of concrete has been poured into the foundations of the clocktower and new event centre.

14. Many more tender packages have been released, and when they have been received, we will have much more certainty on the project schedule.

15. The construction programme is being continuously reviewed, and is still subject to:

a. The Value Engineering process;

b. Consenting process;

c. Final trade tender packages approved and released as required;

d. Unforeseen delays to materials or work on site.

16. The current programme shows construction completion in January 2018, and a handover to the Manager in March after a commissioning period.

17. Detailed design of the operational fit-out of the Events Centre has advanced to a higher degree of priority now. We have a contractual obligation to USAR to provide a turn-key facility that will match their Hotel’s four star standard.

18. The current operational priority is on completion of a kitchen design that will enable the operator to produce high quality food to the maximum capacity of the Event Centre.

19. The focus continues to be on designing the required standard of operational capability within the agreed budget. Officers are working with the consultant team and the operator on this.

Avalon Park

20. The development of the playground area was completed in late September 2016 with the official opening held on Sunday 2 October 2016. Since then the playground has been extremely popular with large numbers of visitors over the summer months.

21. Further funding of $2M to complete the next stage of works (pond and southern entrance) has been confirmed in the 2016/17 Annual Plan. Developed design of the next stage is almost completed and has been estimated. Five contractors have been selected following an open ROI process to tender for the work, with the close of tenders due on 24 April. As works are not expected to commence on the next stage until May, a carryover has been forecasted in the latest financial report.

CBD Promenade - Riverlink

22. Activity on this project is as follows:

· Riverlink, the GWRC, NZTA, and HCC joint project, will soon reach 90% Design Development. This will include cost estimates.

· Consents and land designation processes will occur during 2017-2019.

· Construction of flood protection construction is programmed 2019 – 2025.

· Officers are working with affected business owners in Melling and Pharazyn Street areas.

· Economic analysis identifies substantial net economic benefits to the City from investment in the promenade. It is also predicted that the capital investment by Council would pay itself back within 25 years.

· Discussions are being facilitated through the Mayor with developers on Daly Street. A developer has lodged a resource consent application for 10 Daly Street.

· Future land use activities are being considered in the areas of Marsden and Pharazyn Streets. Low level residential, train transport, park and ride, and aligned activities such as day-care are being considered.

· Council’s January 2017 survey gained 605 responses which showed very strong support for the Promenade, CBD apartment living, improving public transport, and improving walking and cycling.

· NZTA is seeking and now facilitating a Hutt ‘story’ to understand the city’s future plans for growth and land use. Kaikoura has resulted in increased competition for transport funding. NZTA now needs to more thoroughly analyse all discretionary projects such as Melling in order to make funding decisions.

· The proposed Annual Plan includes an additional $39 million, staged over various financial years from 2019 to 2034, for our contribution to the $200m Riverlink project.

· Council officers will continue reporting to SLT and the CBD Task Force.

Community Services Group and Community Facilities Trust (CFT) Projects

23. The status of these projects is as follows:

Fraser Park Sportsville Stage 2 – Multipurpose Sports Building

24. The CFT has now raised a total of $1.64m of its $3.2m target to complete Stage 2. Because of this progress the CFT awarded a conditional contract for the construction of the project to Armstrong Downes of Lower Hutt in November of 2016. The contract was conditional upon the CFT raising the balance of the required funds. Armstrong Downes and CFT are now working together to drive cost out of the building project to enable a start date of June 2017, subject to Council approval.

25. The CFT is also continuing with a fundraising campaign to raise the balance. An experienced fundraiser has been appointed along with additional administrative staff to assist him. The CFT is presenting to Council in May.

Walter Mildenhall Park Redevelopment

26. The main clubrooms, the three external greens, the tennis and petanque courts, landscaping, fencing and lighting are now complete and ready for fit out by the clubs. The built space is attractive, sunny and generously proportioned and represents a huge step up on the amenities of both the legacy club facilities.

27. The Naenae Bowling Club is now project managing the movement of the combined bowls clubs, petanque club and the RSA into the new facility.

28. Progress on the adjacent covered internal green has been slower than expected because of the 7.8 earthquake, the highly changeable weather over the summer, and four roof beams being built out of agreed construction tolerances. The out of tolerance beams have now been corrected and are being reinstalled on the site. Once these are in place the artificial turf will be installed under the completed roof.

29. Hawkins Construction regret the delay and will meet all costs involved in putting right the construction fault. Fortunately the design of the facility will allow club members to use the new club rooms and community facilities including the external greens and tennis courts, while construction work continues on the adjacent undercover bowling green.

30. Lastly, work on the driveway in from Vogel Street and the associated parking courtyard will be completed as soon as the construction activity associated with the indoor green is completed. This is expected to be by late July. Access to the site and approximately 50 car parks will however be available from Treadwell Street by the end of April.

Huia Pool Development

31. The project continues to progress and the building is almost enclosed. You can really start to see how the facility will finally look. Set out below are some of the major milestones that have been completed since the last update:

· The roof, cladding and 85% of the windows in the pool halls and gym have been completed

· The pool has been completed and is ready for the pool floor to be poured

· All blockwork for the changing room, foyer and plant areas have been completed

· All concrete around the poolside has been laid

· The ventilation plant has been put in to position

· Pre-wiring and plumbing for the building has started.

32. The project is currently on track for completion in late July 2017 and the budget is currently tracking a positive forecast variance.

Stokes Valley Community Hub

33. Contractors are on time with structural works due to be completed in May.

34. As noted, the contingency budget has been spent on asbestos removal and soft spots in ground. Only a small amount of budget risk still remains in the project as this is a design–build contract.

35. The temporary library continues to operate. In addition, Cheryl Murray (Community Facilitator – Projects) is based out of a container located in Scott Court two days a week as an initial point of contact for community. She will be hosting a range of other HCC officers in the container to provide outreach services and advice.

36. A series of community activities have been developed and delivered by the Libraries, Leisure Active and Community Partnerships and Relationships teams. Approximately 12 programmes and events will have taken place by the time the hub opens. In addition, several arts projects are in progress which will result in permanent installations at the new hub. These have been designed to reflect local culture and history.

37. Overall the project is tracking on time and on budget at this stage.

Healthy Families Lower Hutt

38. Smokefree Lower Hutt:

· Healthy Families Lower Hutt has joined the Takiri Mai te Ata Regional Stop Smoking steering group to strengthen collective efforts.

· We have commenced engagement in Wainuiomata regarding exploring designating areas of town centres smokefree. This has included connecting with Wainuiomata Ward Councillors, stakeholders and community champions. We presented to the Wainuiomata Community Board at its April meeting to get feedback and endorsement of a proposed engagement process.

· Cheryl Murray is leading engagement regarding designating areas of town centres smokefree in Stokes Valley.

· Parks & Gardens have installed metal smokefree signs at parks, playgrounds and beaches in Eastbourne. Wainuiomata and the North East will be the next areas to having signs installed.

· Libraries have been actively promoting smokefree areas.

39. Hutt Real Food Challenge

· On 4 April we held a successful Hutt Real Food Challenge public showcase where our six local teams presented their initiatives and their next steps to improve our local food system. Many of these initiatives will be seeking Council support going forward.

40. Go the H2O (water initiative)

· We are working with Leisure Active and other Councils and stakeholders to provide player of the day certificates which offer free pool entry as a healthy alternative to fast food sponsored certificates. This has been hugely successful with Wellington City Council and Upper Hutt City Council now also coming on board.

· We now have two portable hydration stations within Council for use by the community and organisations at their events and sporting fixtures to encourage water as the drink of choice.

· We are working with schools, workplaces and sporting organisations to support them to become pro water or water only settings.

41. Local Alcohol Plan

· We are working alongside Regional Public Health to encourage community to have their say on Hutt City’s Local Alcohol Policy.

Science & Technology Funding and Activity

42. Council allocated $160,000 in the 2016/2017 budget for projects related to Technology Valley. Projects include:

· A dedicated staff resource to focus on development of the STEMM business sector in the city.

· Mayoral Scholarships for the Open Polytechnic Graduate Certificate in Primary Science Teaching (ongoing programme).

· Scholarships for Lower Hutt resident students to study at Weltec’s School of Engineering. These are matched by industry in the city (ongoing programme).

· The Hutt Science Centre. 38 primary schools in the city are enrolled in the Hutt Science Centre programme and the resource centre has been expanded at Naenae Primary School. A professional development programme has commenced for primary and secondary school teachers. Hutt Science successfully applied for further funding totaling approx. $60K from MBIE to run a science programme in schools in the North East in 2017.

43. Manufacturing Accelerator

Creative HQ, is through a 12 month pilot programme called 1st Assembly at 125 High Street. 1st Assembly is running an active programme of startup meet-ups, manufacturing meet-ups and hardware themed workshops. 1st Assembly runs monthly "Hardware sessions" that link into Creative HQ's 1400-member "Startup Garage" meet-up group. Both Creative HQ and HCC are planning to continue 1St Assembly as a mechanism to support STEM businesses in Hutt Valley.

The space at 125 High Street now accommodates six ventures Conduce, Makegood, Fre3Formd, Quamcom, Yali, Simutech and temporarily housing NEC. Awareness has grown significantly as a result of the strong links that Lightning Lab Manufacturing formed with other stakeholders, such as the Hutt Valley Chamber of Commerce, Technology Valley Group, and Callaghan Innovation.

On 15th October 1st Assembly hosted an Open Day featuring hardware workshops and demos, opportunities to meet business start-ups and as well as activities for kids. Over 2,000 people visited the space throughout the day.

44. Maker - Space (Techshop) Feasibility - TechShop makerspace market assessment

A facilitated workshop was held with proposed stakeholders and representatives from industry on March 10 with the intention of finding common goals for a TechShop and establishing a group to help move the project forward and create individual business cases.

Initial feedback from the session suggested WelTec and the Open Polytechnic of New Zealand would like to be included in an establishment group. Further requested data is yet to be supplied to TechShop for them to complete the financial modelling.

Urban Growth Strategy Implementation

45. The Urban Growth Strategy 2032 was adopted in 2014.

46. Implementation projects being worked on include:

· Wainuiomata - extension of Wise Street – This work has been undertaken enabling the start of a consented 31 lot private subdivision on one of the landholdings along the extension. Other landholdings along this extension are considering future residential development.

· Upper Kelson – extension of Major Drive – currently working with owner on proposed plan change to enable this site to be developed into approx. 90 lots and brought to market.

Kaitangata Crescent, Kelson – existing consent for approx. 140 lots – Urban Plus and Council officers working with owner who is looking to bring a changed plan of development to Council increasing the number of lots to be developed to approx. 180.

· Stokes Valley – extension of Shaftsbury Grove – Urban Plus received an unsolicited offer for the Shaftesbury Grove site. Given the acceptable price being paid and that Urban Plus could no longer achieve the initial yield of sections anticipated due to ecological factors the sale to an experienced developer made sense. The agreement is still dependent on Urban Plus achieving a number of conditions.

· District Plan Work Programme - work continues on the residential intensification changes required for the UGS.

· It is intended to continue the Development Incentives and Rates remission schemes until 30 June 2020. Consultation is underway with Annual Plan.

CBD

47. Current CBD Development activity includes:

· Hotel development – a new resource consent currently being processed.

· 2 Connelly Street – Construction underway

· Post Office Building – Completed

· Gibson Sheat Building – Car parking building completed

· Hutt Baptist Church – new façade and roof replacement work completed.

· Centre City Plaza – earthquake strengthening completed – earthquake damage repairs to car park completed; earthquake damage to commercial offices under repair.

· 531 High Street – lease to Kiwibank.

48. Retail activity in the CBD continues to be affected due to building damage and cordons resulting from the November 2016 earthquake. Marketview data shows 16% decline in spend in the month of February compared with the same month last year.

49. The Queensgate Shopping Centre reopened the remaining retail space on April 6 after completion of the demolition of the Event Cinemas and associated carparks building.

CBD Free Car Parking Trial

50. Free parking in the HC2 Shopper Parking Zone in the CBD ended 3 April 2017. Long term parking charges reverted to pre-trial levels as at 16 January 2017.

51. Council has asked officers to investigate a full city-wide review on the future parking demands the city will face and with results expected to be presented back to Council later this year for consideration.

CBD Bus stops

52. 2016 work commissioned by HCC and GWRC could not find evidence of significant road safety problems. However Colmar Brunton survey work showed that public transport is a major contributor to the economic activity in the CBD. Work on this project has been put on hold indefinitely.

Suburban Shopping Centres

53. Naenae Shopping Centre Upgrade 2015-2016 was completed during 2016.

54. Waterloo Shopping Centre (Trafalgar Square) 2015-2016 was completed during mid 2016. A further upgrade will be done to the western side (Birch Street) during early to mid 2017.

Petone 2040

55. Stage Two work is almost complete and a Council Briefing was given on 7 Feb 2017. Fifteen high level projects have been identified but require further analysis and development eg. Jackson Street, Heritage, Strategic Infrastructure Projects, and new Housing Areas.

56. A separate paper on this is before this Committee elsewhere in the agenda.

Options

57. There are no options. Information is for noting only.

Consultation

58. No consultation was required for this report. Consultation relevant for the specific projects outlined above have been undertaken as required

Legal Considerations

59. There are no legal considerations.

Financial Considerations

60. There are no financial considerations. All funding discussed in this paper has been approved at previous meetings or were reported as budget implications to Council on 16 February.

Other Considerations

61. In making this recommendation, officers have given careful consideration to the purpose of local government in section 10 of the Local Government Act 2002. Officers believe that this recommendation falls within the purpose of the local government in that it is mostly a noting paper on current activity. It does this in a way that is cost-effective because it provides timely information to Council.

Summary Table

The table below provides an overall summary of the timing and status of each of the projects mentioned in this report.

Project	To be completed by 30 June 2017	Project completion date	Status
Events Centre	Significant progress in the structural construction of the Event Centre. Significant progress in the reinstatement of the Town Hall. Operational fit-out agreed.	Early 2018	Revised
Riddiford Gardens	Phase 2 works are now completed, apart from minor exterior works to toilet pavilion. Phase 3 works design and estimates almost complete.	March 2018	Phase 2 works completed. Design of phase 3 works almost complete with work to be priced by Naylor Love with work planned to commence in May.
Avalon Park	Hawkins has completed work on playground space. Design and estimates for next stage almost completed and ready for tendering.	June 2017	Playground stage completed. Design of next stage nearing completion. Works planned to start in April.
CBD Promenade - Design	Design and Costing stage	June 2017	On track
Regional Bowls Centre	Design complete. Fundraising 95% achieved	Target: Mid 2017	Late
Huia Pool Development	Construction 50% complete	July 2017	On track
SV Community Hub	Construction underway	September 2017	On track
Fraser Park Sportsville Stage 2	Detailed design 95% complete	2016/17 (funding dependent)	Late
UGS – Wainuiomata Wise St	Draft design and cost estimates completed. Discussions with residents commenced		Completed
UGS – Upper Kelson	Revised design and cost estimates completed. District Plan team to progress Plan Change	June 2020	On track
UGS – Stokes Valley	Draft design and cost estimates to be completed. District Plan team to progress Plan Change		Possible private sector development
UGS – Wainuiomata Development Plan	Plan being finalised		Completed. Coordinator appointed April 2016.

Appendices

There are no appendices for this report.

Author: Kim Kelly

General Manager, Strategic Services

Approved By: Tony Stallinger

Chief Executive