Glen's article The true cost of the civic redevelopment and the ongoing and the annual cost to each ratepayer and is below for your information.
Tauranga's $306 million 'nice to have'
The True Cost of Te Manawataki o Te Papa
Glen Crowther Mar 16 READ IN APP
I’ve been asked several times in recent weeks about the cost of the Te Manawataki o Te Papa Civic Centre project, which TCC signed off in August and December 2024.
Whatever we think of this project, the funding needs to transparent, so here are the details:
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The capital cost for the project is $306 million. That breaks down to:
$ 96.5 million - Library-Community Hub (LCH) [in progress]
$122.4 million - Civic Whare-Exhibition centre-Museum (CWEM)
$ 25.1 million - Civic Plaza, Landscaping, etc.
$ 9.2 million - Masonic Park [completed] … yes, really $9.2m!
$ 10.9 million - Baycourt
$ 7.6 million - Art Gallery Door Relocation / Upgrade [in progress - originally $3.38m]
$ 25.6 million - Part of Waterfront Project - Central Plaza etc. [in progress]
$ 9.1 million - Extra road & footpath upgrades
$306.4 million TOTAL
So far, all but $21.4 million ($21,427,260 to be exact) is funded by ratepayers, with the promise that developer contributions will add another $700,000 of non-ratepayer funding.
The operating costs determine how much ratepayer money goes towards the Te Manawataki project every year. Those include the cost to staff and operate the facilities, depreciation on the buildings, and interest on the additional debt – up to $284 million of debt.
Over the coming decades, the annual operating costs will add up to hundreds and hundreds of $millions.
The projected additional Operating Expenditure for 2029-30, the year after the project is completed, is $25.2 million per year. Adding the current $6.1 million costs, that breaks down as:
$15.2 million pa for Library (LCH) = $10.0m + $5.2m current Central Library expenses
$13.0 million pa for CWEM & Civic Plaza = $12.1m + $0.9m current Museum expenses
$ 3.1 million pa for Other (Baycourt upgrade, street upgrades, part waterfront upgrade)
$31.3 million TOTAL ANNUAL EXPENSES
That equates to around $500 per ratepayer – noting commercial and industrial ratepayers will pay more, while most residential ratepayers will pay less than that. Projected revenue is $1.8 million p.a., but even if that comes true, it will still cost more than $450 per ratepayer.
The final kicker is that a chunk of the true cost isn’t included. The Commissioners made some rash decisions to prioritise this project, including selling off the Marne Precinct for well under market valuation, slowing down the Hewletts-Totara upgrade, and making decisions about public transport in the city centre that will almost certainly result in significant lost revenue.
All up, this is a hugely expensive project by anyone’s standards. And unlike Wellington’s controversial Convention Centre, which was criticized by the Prime Minister for not making a profit as anticipated, this is aiming to make a $29.5 million annual loss from day one.
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