Moved By Cr Gavin Benney, Seconded By Cr Phil Halse
That the Council:
1. Notes the proposed development of the Oruku Landing by Prosper Northland Trust (PNT) and the socio-economic benefits it could bring to Whangarei.
2. Notes that this proposal is different to the previous proposal consulted upon within the LTP amendment, with Council not responsible for constructing or owning the building.
3. Notes that whilst the proposal reduces some risk exposure to Council, there is still an element of operational risk (through its CCO), and limited detail available regarding the proposed sub-lease arrangement between NECT2021 and PNT.
4. Notes that Governmnent funding is only available until the end of March 2023.
5. That Council;
a) Approves NECT2021 entering into a lease with PNT to operate the Oruku Landing Conference Centre, along with grant funding to NECT2021 for Furniture Fittings & Equipment, marketing and operating (if required), subject to:
i. Council approving (at its sole discretion) the conditions and term of any leases to be entered into by NECT2021 (both through the current proposal and in future).
ii. Council’s grant for Furniture Fittings & Equipment being for up to $5m, subject to NECT2021 confirming costings and estimates with Council.
iii. The operating grant being for up to $650k per annum for the first five years of operation, if considered necessary by Council based on cashflows, accounts and projections of NECT2021.
iv. The marketing grant being for up to $50k per annum for three years, if considered necessary by Council based on cashflows, accounts and projections of NECT2021.
v. Council being satisfied following further review of the assumptions and financials underpinning the proposal
b) Notes that approval in principle under this option is subject to conditions being met, with it being for Government to determine whether this satisfies it’s requirements.
c) Delegates the Chief Executive to negotiate and approve funding agreements and lease conditions/term, including, but not limited to, the conditions above.
d) Notes that the funding mechanisms for Council’s contribution will be determined through the 2024 – 2034 Long Term Plan.
e) Notes that should the further review of the assumptions and financials underpinning the proposal not be favourable this matter will be brought back to Council by staff.
Those who voted for the funding
were: Mayor Cocurullo, Cr Gavin Benney, Cr Ken Couper, Cr Phil Halse, Cr
Deborah Harding, Cr Scott McKenzie, Cr Carol Peters.
Against: Cr Nicholas Connop, Cr
Jayne Golightly, Cr Patrick Holmes, Cr Marie Olsen, Cr Simon Reid, Cr Paul
Yovich.
The latest funding proposal comes
at a time when the council is proposing a substantial increase in rates of up
to 10.9% in the next financial year.
Further information
Application for govt funding made by Northland Development Corporation. Ministry for the Environment, Proactive release of application and decision documents: Documents >>>
Media
RNZ, 26 Nov 2021, Whangārei council abandons controversial Oruku Landing conference and event centre, article >>>
Stuff, 26/11/2021,
NZ Herald, 11 April 2022, Councillors force extraordinary meeting over $250m Oruku Landing development. article >>>
Northern Advocate, 26 Mar, 2023, Whangārei District Council to put up to $11.4 million towards Oruku conference centre, article >>>
