Waikato ratepayers are to be given the option of whether their regional council should lease or own a new purpose-built office block on prime Hamilton East land.
The council has confirmed that a new building project will be included in the Draft 2012-2022 Long Term Plan. It says construction on council-owned land in Grey St could start in September 2015 because by then the lease of the tavern premises currently on the site will have expired and planning, design and contractual work will be finished.
The council says its current office accommodation in Hamilton is “inefficient”, with the organisation working out of three buildings in Hamilton East and also in Marlborough House in the city centre. By bringing all staff together and reducing the number of offices, the council expects to achieve “a range of productivity gains” while reducing maintenance and other costs.
Councillors have agreed the current accommodation is inadequate, but some voted against the new building proposal, saying the timing was wrong given the ongoing economic downturn. Others said the building project would stimulate economic activity by providing jobs and injecting confidence in the local economy.
After debate over whether to own or lease the building, the council decided to publicly signal its preference for ownership because it would be a sound public investment and would give the council greater certainty about costs and accommodation into the future.
The options for public consultation will centre on whether the building should be a public asset owned by the council on behalf of ratepayers, or owned by an investor and leased by the council.
Preliminary cost estimates have been based on a 7000 square metre area costing $34 million to develop or $3 million to rent annually.
Costs will be offset by the sale of the council’s current office building in Hamilton East.
Chairman Peter Buckley said the decision to include the proposal in the draft plan was another step in a very long and careful process.
“There is a lot of detailed work still to be done to determine the operational and functional requirements of the council which will then inform the detailed design work and cost estimates,” he said.
The council will prepare a full statement of proposal laying out options and financial details, including costs of funding the building through debt or the investment fund.
Meantime, the council will continue to keep a watching brief should suitable office space become available in Hamilton.
Councillors voted eight to four in favour of consulting on lease and ownership options in the Long Term Plan, and indicating the council’s preference for ownership.