The Tauranga City Council has paused looking at developing a convention centre and hotel.
The move comes as central government directs councils to "rein in the fantasies" and get back to core business.
In March 2024, the city's commissioners (who ran the city at the time) approved the preparation of a business case to "fully examine the costs, risks, and benefits" of having a hotel and conference centre as part of Te Manawataki o Te Papa.
Developing a business case were anticipated to cost up to $200,000 and there was existing budget in the council's Long Term Plan to cover the cost.
The findings of the business case were to be reported back to the council in the second half of this year.
However, on Thursday, council confirmed that developing the business case was on hold.
"Work on preparing the business case is on hold while we investigate funding opportunities for the project," said the council's general manager of city development and partnerships, Gareth Wallis.
Wallis said council wanted to wait until it knew more about these funding opportunities before committing to work that might not be needed.
A summary of development costs for the proposed hotel and conference centre was estimated at over $147 million in March. A report to the commissioners said that the success of the conference centre would be dependent on new hotel supply.
"Establishing funding for the conference centre is likely to provide investor confidence, thereby encouraging private sector funding for the hotel development."
The council said it was exploring a wide variety of central government and private sector funding opportunities and wanted to pause the business plan until it knows which pathway it might want to pursue.
"There's no point spending ratepayer funds on developing information that might not be needed," a council spokesperson said.
New mayor Mahe Drysdale said he supported placing the business case on hold until the council knew more about how a hotel development could be funded.
"From the outset, this was envisaged largely as a private sector investment opportunity, with Council's involvement being as a facilitator and the landowner."
2019 Statistics New Zealand data showed that Tauranga was far behind neighbouring cities when it came to the number of hotel rooms available, having 494 compared to 687 in Hamilton and 1828 in Rotorua.
In March 2023, property development and investment partner Willis Bonds prepared a report for the council which identified that when it came to hotel space in the city there was "current evidence of market failure, where the private sector is unable to fulfil a public need."
10 comments
Great news
Posted on 23-09-2024 13:43 | By The Sage
Finally Council are thinking about where the funding is going to come from for these projects, or if they are even needed. The Rate payers have already been hammered enough.
Well….
Posted on 23-09-2024 14:28 | By Shadow1
…at last the penny has dropped. It’s interesting that it took the Minister of Local Government to make them stop the work. I now realise that they won’t need a huge rates increase, and possibly they will consider a decrease! Wow, wouldn’t that be something.
I hope they know that the Minister is frowning on cycle lanes and raised speed humps too.
Obviously they won’t need all the surplus staff who will spend their days drinking coffee if we don’t get rid of them.
Can I wish for a new CEO?
Shadow1
Parking
Posted on 23-09-2024 15:29 | By Raewyn
Reopen the strand car park to give the businesses a fair go!
What a great idea Gareth
Posted on 23-09-2024 17:18 | By nerak
"Wallis said council wanted to wait until it knew more about these funding opportunities before committing to work that might not be needed." I'm sure it's not a case of might not, much more a case of is not. Good reading to please ratepayers, just a shame the push has come from central govt. Pleasing they see fantasies, as do we.
AND how about
Posted on 23-09-2024 21:57 | By The Caveman
the $400 MILLION civic centre - yes that is what it will be - $40 MILLION before it is finished - put that on HOLD as well !!
Excellent News
Posted on 24-09-2024 07:24 | By Thats Nice
And keep the plans permanently paused please.
just saying
Posted on 24-09-2024 07:44 | By dave4u
what about an indoor rowing center along the foreshore for the main man
So our LOT are useless
Posted on 24-09-2024 08:45 | By an_alias
Why did it take Central govt to push for this, surely anyone with a brain would understand you are spending WAY OVER BUDGET.
These fantasy ideas should NEVER have gone ahead, just as the constant cost of a useless Museum.
We have real infrastructure needs.
DON'T Push Pause . . .
Posted on 24-09-2024 14:32 | By Yadick
Don't push the pause button, push the STOP button. While you're at push the STOP button on Te Manawa...
We DO NOT need a Museum or an Art Gallery or meeting rooms. None of that is going to bring on a thriving metropolis so how is it going to pay its way or the bigger question is how are WE going to pay its way. We can only bleed so much before we collapse completely.
It would be far more beneficial to spend money putting parking back onto Cameron Road to at least support the hero business owners that have, against all odds, kept going, struggling on. Nobody in their right mind would open a business with absolutely no parking. So fix the big issue and just perhaps customers will return.
End the unregulated supply first
Posted on 27-09-2024 06:58 | By Naysay
Why engage in Hotel development when you have unregulated and non rateable holiday accommodation all over the city. This industry needs to be addressed first so start creating a register of holiday rentals , Bach care etc. These industries directly impact on operators . Worth considering that holiday rentals do not need consent, fire egress or health and safety. All of these are under TCC control .
Leave a Comment
You must be logged in to make a comment.