$200m hotel to start in 2016

2732d2a065c325feee5f01f2d26371c5175b91fb_620x311Work on a $200 million luxury hotel on Auckland’s waterfront will start next year after the project was granted resource consent this week.

Auckland Council’s Panuku Development Auckland branch made the announcement this morning. The building will be one of the largest Chinese investments in New Zealand infrastructure.

The hotel – to be referred to as the Park Hyatt Auckland – will be managed by the world-renowned Hyatt Group and will be built with the help of the Fu Wah International Group, which announced its plans for the hotel in November.

The group will invest around $200 million in the project, with $2.5 million going to the development of a new space for the public immediately around the hotel, which will be located at Wynyard Quarter.

The building will bring an element of extravagance to the area, standing at seven storeys high.

It will have 195 rooms, a ballroom, entertainment facilities, health centre and day spa and will have a total floor area of 29,000sq m.

Panuku Development Auckland’s interim chief, John Dalzell, said having a quality hotel in the city would create a new standard of “premium accommodation” in the region.

“This is a landmark site for Wynyard Quarter and is deserving of a building of the standard the developer and its design team have come up with,” he said.

“It’s great to see it pass this latest milestone and we look forward to the positive impact the hotel will have on the waterfront and the region.”

Prime Minister and Minister for Tourism John Key yesterday praised the new hotel, saying that it would provide a huge boost for local tourism.

Auckland Mayor Len Brown, who is in China, said that such a hotel would help not only to attract the very rich to Auckland, but would also create more jobs in the city’s business district.

“This hotel means more jobs and a strong step into the lucrative but largely untapped high-net-worth individuals tourism sector – which will be a huge benefit to Auckland’s economy and future.”

The hotel will open in 2017.

Source:

  • NZ Herald

Canterbury construction $4 billion and rising

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Metro Sports Facility

Construction spending in Christchurch has hit more than $4 billion thanks to large builds like the planned new Metro Sports Facility.

A million dollars is being spent on construction in Canterbury every two hours – and spending is still rising.

While residential building work has decreased for the first time in three years, commercial and public construction is ramping up, according to Statistics New Zealand.

More than $4.3 billion has been spent on building work in the region in the past year. The dollars going into non-residential construction have jumped 14.6  per cent in the last quarter, after increasing steadily over the past year as the rebuild ramps up.

Neil Kelly, building figures manager for Statistics New Zealand, said while many houses had already been replaced or repaired, commercial construction was still gathering speed.

“You only have to count the cranes. There’s a lot of big stuff going on and those big projects are boosting the numbers.”

Its figures translated to $83 million a week going into Canterbury’s construction industry, or nearly $12m a day.

They came from  its work in place survey, which measures the value of new residential and non-residential building, as well as alterations big enough to need consent. It does not include internal refurbishments or minor renovations, or non-building construction such as roads and other infrastructure.

Leighs Construction managing director Anthony Leighs said the commercial market was the busiest it had been in the post-quake environment.

“What we’re seeing in there’s probably the highest level of activity in the market at the moment than there’s ever been… from the total number of buildings being built across the city.”

Leighs believed the momentum would “remain very solid” for two to three more years.

The company’s “top of the pops projects” at the moment were “massive”, including the BNZ and ANZ centres, and the Burwood Hospital rebuild.

Hawkins Construction South Island regional manager Steve Taw agreed, saying the rebuild was “likely to continue at this current rate for at least another 12 months”.

He said the projects the company were working on were likely to be adding to the “ever increasing spend in the Christchurch commercial construction market”, but it was planned and not unexpected.

“It is pleasing to see confidence in our central city increasing with a number of projects in full swing.”

Ian Smith, head of project management company Building Intelligence Group in Christchurch, said while the central city skyline was full of private developers’ cranes, internal work on those buildings and the public sector spend was yet to come.

Rather than peaking , the rebuild would plateau as big projects such as they city’s new central library, Metro sports centre and convention centre got underway.

“There’s going to be quite a lot of money spent on all those buildings.”

Smith said while there were “hot spots” in construction such as the need for structural steel, the market would supply enough materials and labour in most areas.

“By and large the market has responded so far, and met demand.”

Source:

  • The Press

5 years since Christchurch changed

getimage (5)Five years ago today, 436,000 lives in Canterbury changed.

We did not know by how much or when we might return to normal, but we can agree that the upheaval started with a 7.1-magnitude earthquake 40 kilometers west of Christchurch just after 4.30 am on September 4, 2010.

The devastating aftershock that struck the city nearly six months later changed Canterbury on a much larger scale, but September was the start.

How do you measure and define the recovery? Dollars spent? Time elapsed? There is no right answer.

In truth, there are 436,000 different recoveries happening at once – one for every resident of Christchurch city and the Selwyn and Waimakariri districts.

No two versions of recovery are the same.

We have each taken stock of the process countless times and probably arrived at different conclusions for how the recovery is faring.

In the interests of providing the fullest answer possible, the Canterbury Employers’ Chamber of Commerce (CECC) asked a cross-section of key players in the rebuild to report their progress by a handful of measures, including project size, completion date and value. Dozens responded.

This year, perhaps for the first time, that snapshot hints at conclusion. The Earthquake Commission has completed 97 per cent of its 69,081 building repairs and 80 per cent of 150,735 land claims. More than 80 per cent of all quake insurance claims are settled, according to the Insurance Council of New Zealand. The Stronger Canterbury Infrastructure Rebuild Team (Scirt) is 76 per cent through it $2.2 billion job of repairing the city’s roads and pipes. Almost all of the work in the central city (96 per cent) is finished.

The CECC asked respondents when they expected to finish their work. Some major projects, including the central city bus interchange and the ‘‘Deloitte’’ building on Cambridge Tce, are already finished. Next year looms as a big leap forward with a cluster of retail developments – the BNZ Centre, the ANZ Centre on the old Triangle Centre site, the Crossing and the Terrace – all scheduled for completion.

‘‘I would think by the end of next year, October 2016, when the heart of that central city retail offering is up and operational . . . you’re going to see a major shift,’’ CECC chief executive Peter Townsend said. ‘‘You’re going to see people coming back into the central city in ways that we haven’t seen for five years.’’

A Cera report from July estimated the rebuild – measured as progress in residential, nonresidential and civil construction – was 41 per cent complete. Of the three categories, only residential construction spending was trending down. The other two were steady or climbing. The peak for all construction in the city (including business-as-usual building) is shaping as the last quarter of 2016, when Cera estimates $1.3b will be spent.

The idea the rebuild was already peaking was ‘‘fallacious’’, Townsend said. He puts progress at somewhere between 35 and 40 per cent. The decline, when it did come, would be gradual. ‘‘We’re not going to fall off a cliff. The Government’s assessment of the end of this earthquake recovery phase is 2026. We’re going to taper off.’’

In construction terms, Cera estimated that would translate to a decline from the late 2016 spending peak to about $500m in the final quarter of 2021. By then, Christchurch will have almost spent all of the $40b recovery bill.

‘‘That [spending] has an impact on the future of Christchurch that I don’t think people have factored in,’’ Townsend said. ‘‘I’ve often been challenged by people saying ‘We’re only replacing what we’ve lost.’ No we’re not. It’s all new. We are recreating a city.

‘‘I don’t know anywhere in the world where $40b has been tipped into a population of 360,000 people to recreate a city. It’s unique.’’

The bulk of the money will filter through the economy via insurance payouts (according to the Insurance Council, commercial and residential quake claims are about 88 per cent and 84 per cent settled respectively) but some will arrive through big ticket developments. The University of Canterbury will spend $1.2b on its redevelopment by 2022, including new engineering ($145m) and science ($216m) facilities due by 2016 and 2017. The Ministry of Education’s $1.1b Christchurch Schools Rebuild programme includes the rebuild of 115 schools. The $900m redevelopment of Lyttelton port – a mix of quake repairs and expansion – will continue until 2042.

As those time frames suggest, the rebuild was never going to be a five-year job. Charles Eadie, who led the rebuild of Santa Cruz city after the 1989 San Francisco earthquake, told Fairfax Media the recovery reached a ‘‘turning point’’ six years after the quake and most work was completed after 10 years.

‘‘I think we’ll look back on this period of our lives and say . . . we were hopelessly optimistic when it came to time frames,’’ Townsend said. ‘‘We all thought we’d be over this in five years. No, we won’t.’’

The statement is truer of some things than others – Scirt prioritising central city infrastructure repairs over suburban ones, for example.

‘‘I don’t want us to get to 10 years and think that we’re in that kind of state we won’t be able to reflect very positively on our journey,’’ Christchurch Mayor Lianne Dalziel said.

The focus brought on the central city by the recovery blueprint and the magnitude of the task of repairing broken parts of eastern Christchurch posed that risk, she said.

Source:

The Press

Concrete, concrete and more concrete!

1436745206333A construction firm has performed the largest single concrete pour of Canterbury’s rebuild to date.

Leighs Construction workers started the massive task at 1am on Saturday and worked until late afternoon, with about 1870m3 of concrete pouring into a Christchurch central city construction site’s basement.

The pour laid the foundation for the new ANZ Centre on the site of the former Triangle Centre, bordering High, Cashel and Colombo Streets.

About 370 trucks delivered the concrete.

Leighs Construction’s managing director Anthony Leighs said this was a massive milestone for the CBD rebuild as a whole.

The team craned a pump into the basement and pumped the concrete into the area from three points on High St, Cashel St and Colombo St, he said.

The next stage of the project would involve construction of the basement walls and columns, with a tower crane due on site at the end of the month.

The new four level building would include ground floor retail and hospitality areas of 1700m2 and three levels of office.

Source:

  • The Press
  • Photo: Dean Kozanic

Next stage for Christchurch rebuild

9bRMehChristchurch business leaders are applauding the Government’s transition proposal where the Government retains a key role in the Christchurch rebuild over the next five years.

They were concerned that the Canterbury Earthquake Recovery Authority (Cera) winding up next April year would leave a vacuum of leadership in the city and the Government’s commitment to anchor projects was flagging.

Ngai Tahu Property chief executive Tony Sewell said the proposal addressed every issue the business community had been concerned about.

He was happy with the Government’s “complete commitment” to building the Convention Centre and the Metro Sports centre. Ngai Tahu is part of a consortium chosen as the Government’s preferred partner to develop the Convention Centre.

Businesses had been concerned Government support for Christchurch was flagging “but it’s not.”

Earthquake Recovery Minister Gerry Brownlee must report back to Cabinet by the end of August on the setting up of a new urban development authority, called Regenerate Christchurch, to lead the rebuild of the central city when Cera winds up in April.

The Christchurch City Council has set up its own development authority but the Government proposes now that its development authority should “integrate” with the council’s.

The Christchurch City Council and the Government are expected to work together to set up Regenerate Christchurch and decide what its aims are, what its functions would be, what powers it had and who would pay for it.

“They have clearly set out that there is going to be a relationship between Government and council, ” Sewell said.

Asked could the council and Government work together Sewell said “it’s not a can, it’s a must”.

“The voters and the ratepayers won’t tolerate a standoff.” Sewell said.

Canterbury Employers’ Chamber of Commerce chief executive Peter Townsend said the proposal was sensible,offered a staged and predictable transition with the Government roles slowing decreasing and the council’s increasing.

It relied on collaboration between central and local government, “which I applaud” and good strong commercial governance.

He expected the Government and the council to appoint the board members of Regenerate Christchurch.

The chamber had been “pushing strongly” for a governance model over the top of the rebuild projects and that was now going to happen.

Asked if Regenerate Christchurch was just the Christchurch Central Development Unit (within Cera) with a new name, Townsend disagreed with that and said the transition proposal was a step change with new legislation, new leadership and a new collaborative relationship between the Government and council.

He expected the government and council to appoint directors to the board.of the development authority. Those people would have strong commercial experience and project management backgrounds and tracks records.

The Government’s proposal referred to some of Cera’s powers expiring or going to councils and some role for Ngai Tahu.

Kaiwhakahaere of Te Rūnanga o Ngāi Tahu, the tribal council of Ngāi Tahu,  Sir Mark Solomon said he was not aware of any detail on that.

He was on the advisory board, headed by Dame Jenny Shipley, that advised the Government. It called for a “demonstrable step-change in local leadership”.

Sir Mark said the advisory board wanted to see control start to return to the city though the Government still needed to be involved.

Hawkins Construction executive director Jim Boult said he was delighted the government confirmed its commitment to the Convention Centre and Metro Sports centre.

He would like to see timeframes on those two. The Convention Centre was “the lump in the throat” of the central city developing, he said.

Source:

  • The Press

SkyCity Convention Centre design unveiled

skydesign2It will be smaller, more expensive and have a reduced capacity – but those behind the International Convention Centre say it will return much the same economic benefits and provide even more jobs.

They also confirmed no new economic modelling has been done since a 2011 report which estimated a $90 million return to New Zealand.

Initial projections of benefits from the ICC were 800 jobs on completion, 1000 jobs during construction and $90 million of economic benefits to New Zealand.

A new design was released today by Economic Development minister Steven Joyce and SkyCity chief executive Nigel Morrison. Visually, it is one level lower than the previous design but the thrust of the changes is around a reduction in size and capacity.

It’s a different convention centre from the one SkyCity mooted in 2011 when it edged out four competing bids to build the centre, winning on the basis of a promise it would cost taxpayers nothing but a change to the gambling law.

The Government signed a deal in 2013 for a $402 million trade with SkyCity – the value of building the centre against the benefits derived from the gambling law change.

But it then found itself looking for a redesign after Mr Morrison said the centre could cost up to $530 million and might need an injection of public money, prompting the Prime Minister to express concerns over an “eyesore” if extra money wasn’t spent on it.

NZICC_HobsonStreetView_620x310Mr Joyce said this morning that the original benefits projected by the Government and SkyCity held true because they were based around a projections of incoming business which had not changed.

“We’re completely relaxed the numbers we have got in front of us today are able to accommodate the sizes that we’re estimated at the time. There is no material difference to the amount of business the centre is able to attract.

“There’s no substantial change to those metrics. From the Crown’s perspective those variations in cost have gone up and gone back but they don’t make a difference because we’re not paying for it. They certainly make a difference to SkyCity.”

In the time since SkyCity was selected, changes have included the value of the convention centre. It has risen from $350 million in July 2011 to the agreed $402m when the agreement was signed in June 2013, to an maximum $530 million earlier this year. It has now been pulled back to a minimum $430 million with a possible top end of $470 million, to be covered by SkyCity.

The size of the centre has also wandered from the 5000 sq m maximum, stated in a memo to then-minister David Carter in April 2011, to the 3500 sq m maximum in the June 2013 Heads of Agreement to the 2850 sq m in the revised design announced today. As well as conventions, the new design could accommodate 4200 people for a single event.

Other changes – which the Government and SkyCity said amounted to a maximum 10 per cent reduction – were a drop from the 10,000 sq m exhibition space heralded by SkyCity in its 2011 proposal Government to 8700 sq m and the eventual 8100 sq m in the latest design.

skydesignThe new design was captured in an updated Heads of Agreement between SkyCity and the Government, which has seen more authority over construction and design handed to the casino company – subject to a line in the sand drawn by Mr Joyce and officials.

“What we’ve done is said, ‘here is the benchmark now and everything will be measured against the benchmark’. The arrangement is SkyCity can’t depart in any material way from this design today. It shifts the balance slightly.”

This means SkyCity will now have to work to the minimum requirements laid out in the updated deal. It will reduce the company’s ability to renegotiate, as it has since the original agreement was signed.

Mr Morrison said design changes, including a laneway between the convention centre and the new hotel SkyCity is building, would lead to an overall increase in jobs, even if there was a slight change to initial projections.

“If it has changed, it’s 1 per cent. I think you’ll find the number of people employed overall will be increased. The jobs will be greater under this scheme than they were previously.”

On the economic benefits, he said if there was any change it was “nominal” and irrelevant.

He said there was a benefit in reaching the agreement announced. “Part of the savings is being able to get on with it and avoiding future escalation.”

The final hurdle for SkyCity is the resource consent, which was lodged with Auckland Council in December. The panel considering the application has the option of putting it out for public consultation – or approving it with its own authority.

Mr Morrision said it was SkyCity’s preference the resource consent not be publicly notified,. “To do this, we need to get on with this.” He said if the plan was put out for public consultation, it was difficult to know how long it would add to the completion date or how costs would change in that time.

Mr Morrison said it was still not possible to know when the convention centre would be finished because the resource consent had yet to be decided. Beyond that, there would be a three-year build period.

There were no current bookings, but about 60 firm expressions of interest had been made.

He said the shift in location for the hotel to land purchased from TVNZ had added to the value of the deal by $28 million, the current value of the land. The sections, on which SkyCity’s hotel will now be located, were bought from TVNZ for $10 million in 2013 for the building of the convention centre.

Told Mr Joyce had called the new design “handsome”, Mr Morrison said: “Better than eyesore,” a reference to John Key’s comments in February.

Mr Joyce said Mr Key had seen the design and was happy with it.

Source:

  • NZ Herald

Rebuild falling behind

Two years ago this month, The Press consulted developers, landowners, local leaders and recovery plans to form a picture of how Christchurch might look in February 2016.

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Comparing 2013 schedules with progress made two years later makes for sobering reading. Timelines have changed several times and projects that were supposed to have started by now have stalled or been delayed months, if not years.

For some, the blueprint is to blame. The planning and designing phase has taken longer than expected in some cases and involved land acquisitions and zoning difficulties. Major anchor projects have been continually delayed, causing uncertainty for private developers and investors.

Even the quake memorial, which was supposed to be ready for the fifth anniversary of the February 2011 earthquake in 2016, has been delayed another year.

According to 2013 forecasts, construction of the convention centre should have started by December last year and work on the stadium and the metro sports facility by March this year. But no work has begun on any of the sites – the three major anchor projects have been delayed by several years. The Government has offered little explanation for the delays, despite developers and the community demanding answers this week.

getimage (2)This led to speculation that convention-centre costs were spiralling out of control and that Cabinet had rejected a business case for the metro sports facility.

Earthquake Recovery Minister Gerry Brownlee scotched those rumours this week. No business case had been rejected for the facility, he said. Budgets were ‘‘always revised’’ on any building project, ‘‘whether it’s a garden shed, a front fence or a convention centre’’.

‘‘I think everyone should relax and recognise that these types of facilities are going to be around for decades and you’ve got one shot at getting them right at the start.’’

Brownlee was ‘‘pretty relaxed’’ at the delays.

‘‘It’s just a matter of getting things right before you start pouring concrete on the ground.’’

Preliminary work – business cases, designs and plans – was ‘‘a good investment’’.

Brownlee said the city needed the convention centre and the metro sports facility and confirmed the projects would go ahead despite delays.

In Christchurch’s CBD, all major demolitions should have been completed more than a year ago but the Manchester St car park, Calendar Girls on Hereford St, the Orion building, and Westende House are still to be pulled down.

The stalling of Anthony Gough’s Terrace development was another blow for the central city’s development. It should have been completed in September this year but is running a year behind schedule. On the bright side, a rash of new buildings will be completed in the nearby retail precinct next year, including The Crossing, Cashel Square, The Terrace and the ANZ Centre.

getimage (3)The performing arts precinct has also stalled. Ground was broken last month for construction a 300-seat concert hall for the centre for music and the arts, but Christchurch art organisations are still waiting for the Government to pull together a deal for the rest of the precinct on a block bounded by Gloucester, Armagh, New Regent and Colombo streets.

The residential red zone was scheduled to be cleared last year. The Canterbury Earthquake Recovery Authority (Cera) has made good progress but has extended the housing demolition deadline to June 2015. The land clearance will not be completed until April 2016.

The Earthquake Commission (EQC) is also behind schedule. Land-claim settlements should have been completed at the end of last year but complex types of damage have emerged.

The Christchurch City Council has pushed back the opening of the central city library near Cathedral Square by about 18 months, to early 2018.

The design phase and land acquisition took longer than expected, the council says. Site clearance is under way and the council expects to get access to it in July.

The Margaret Mahy playground, on the old centennial pool site, is also running a year behind but should be open in time for the Christmas school holidays.

In 2016, Christchurch can expect the Avon River precinct and the south frame to be nearing completion, a year behind schedule.

It is not all doom and gloom. Some projects were completed almost on time and others are well on target.

Last year, the new Stranges building on High St opened only a few months later than planned. The same goes for the Isaac Theatre Royal, which opened six months later than expected.

The new bus interchange on Tuam St should be fully operational next month, as planned, and work on the justice and emergency services precinct is under way.

EQC is on track to complete its home repairs by the end of the year. The massive task of repairing Christchurch’s pipes and roads is on track for completion at the end of 2016.

Cera acting chief executive John Ombler said the Crown’s commitment to the vision of the blueprint had not changed.

‘‘What has changed are delivery times. We still have some business processes to go through, that’s just a fact . . . and we’ve made a commitment to update [the community] as frequently as we can.’’

Source:

  • The Press
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