About this decision
Te Ngākau Civic Square is the musical, creative, and democratic heart of Wellington, but there are concerns about its earthquake resilience.
The Town Hall is closed and is now being earthquake strengthened. The Central Library has resilience issues that we are seeking feedback on in Decision 6 of this plan. There are also resilience issues with the two Council office buildings - the Municipal Office Building (MOB), the Civic Administration Building (CAB), as well as the Capital E, the City to Sea bridge and the underground carpark. The costs of fixing are big.
What's the background to this decision?
We are working on the Vision and Framework for Te Ngākau right now and it is likely to emulate the self-funding model used on the Waterfront. Like the Waterfront, any developments that would happen would be done under the implementation of the framework that will stipulate the vision, objectives and principles for the whole precinct and ensure the Council and city shape any developments that would happen in this key public space.
In the meantime, we need a plan for the two big Council office buildings that are earthquake damaged and empty. As MOB and CAB are physically connected and have similar resilience issues, it is important that the future of the two buildings is considered together. They both need lots of strengthening work that will cost millions - higher than the $50m estimate.
There are four options
| Option 1: Demolish and site developed through a long-term ground lease (preferred option) | Option 2: Proceed with base build proposal for public purposes | Option 3: Retain and seek to repurpose | Option 4: Sell to support development | |||
In option 1 the MOB and CAB buildings would be demolished, and new buildings developed in their place. Option 1 would:
Housing the National Music Centre (NMC) within any new MOB building would be pursued. (The NMC comprises of the NZSO and Te Herenga Waka-Victoria University of Wellington’s New Zealand School of Music -Te Kōkī) | Remediate MOB in its current form and for it to be a part of the National Music Centre. Retain and strengthen CAB. It would possibly be completed quicker than alternate options that involve a replacement building and would retain the building’s heritage value. | This option would see MOB strengthened and upgraded to a lesser standard to be fit for use as lower end office space. CAB would be strengthened in the same manner as envisaged under option 2. Option 3 does not vary greatly from Option 2 but, would prevent MOB from being available for the National School of Music. | Option 4 would seek to sell MOB and CAB ‘as is’. The new owners would then become responsible for the strengthening and upgrade of the two buildings. Development risk would pass with the building to the new owner. Council would keep ownership of the land. Given the challenges and costs to strengthen these buildings there is no certainty that there would be a buyer or of the sale value, it may actually require Council to incentivise any sale. | |||
| Capital cost and debt impact: Proceeds of $7m from the sale of MOB ground lease; $7m from the sale of CAB ground lease. | Capital cost and debt impact: Estimated $84m for MOB, Estimated $48m for CAB | Capital cost and debt impact: Estimated $70m - $90m for MOB. Estimated $48m for CAB. | Capital cost and debt impact: None | |||
| Rates change: 0.18% 3 year average increase | Rates change: 1.05% 3 year average increase | Rates change: 1.07% 3 year average increase | Rates change: None |
Our preferred option
The Council prefers Option 1 - to demolish and rebuild the MOB and CAB buildings in partnership with private investment through a long-term ground lease for the site. Combining a MOB and CAB development would enhance this opportunity and significantly decrease the need for additional Council borrowing and ratepayer funding to address these impaired buildings.
Want to know more about our 7 big decisions? Head back to our Long-term Plan homepage or read our full consultation document.
