A majority of Tauranga City Council elected members have voted to proceed with the construction of the planned Civic Whare, Exhibition and Museum project, which is a key part of the Te Manawataki o Te Papa city centre revitalisation initiative.

At its meeting on Monday, the Mayor and Councillors voted 7:2 in favour of proceeding with the $128 million project, which will provide a cohesive suite of cultural and civic amenities on the Civic Precinct – the area bounded by Willow, Wharf, Hamilton and Durham Streets.

Mayor Mahé Drysdale said the differing views expressed by Councillors illustrate that the recently-elected Council brings its own approach to investment decision-making, but that there was nevertheless solid support for the cultural, social and economic advances Te Manawataki o Te Papa will deliver for the city centre and the wider community.

“Given that the enabling works for this project, including site preparation, foundations and materials purchased for the building, are already nearing completion, there was a strong rationale for continuing with construction,” Mahé explains.

“The ‘sunk costs’ of that enabling work total around $20 million and if we discontinued the project now, the potential legal costs, loss of committed external contributions to the overall development and potential impacts on wider city centre and stakeholder confidence would have been significant.

“In short, the benefits of proceeding far outweigh the alternative option, which would incur significant costs and not represent good value for money which we’re determined to deliver for ratepayers.”

Drysdale said TECT’s promised $21 million contribution to the museum component of the project is dependent on there being no significant changes to the overall Te Manawataki o Te Papa projects, while a $12.1 million grant provided as part of the previous Labour Government’s water service reforms would likely have to be repaid if the project did not proceed.

The Civic Precinct projects also include construction of a Library and Community Hub facility, which is well underway and expected to be completed in 2026, plus associated landscaping and streetscape improvements and the recently-completed upgrading of Masonic Park as the key link to the transformed waterfront reserve. Its aim is to create a vibrant, safe, accessible and thriving city centre which will draw locals and visitors to the area, providing much-needed cultural, social and economic stimuli.

The land underlying the Civic Precinct is owned by Te Manawataki o Te Manawa Trust, a Council-controlled organisation (CCO) jointly-governed by Otamataha Trust (on behalf of the original owners) and Council.

Delivery of the various Civic Precinct projects is overseen by Te Manawataki o Te Papa Limited, a CCO made up of independent directors with significant experience in development and construction.

Their recommendation was that the project budget - $92 million for site preparation and building construction and $36.4 million for non-construction costs (such as consenting requirements, legal and design costs, furniture and fittings and contingency and cost escalation provisions) – be accepted.

Speaking on behalf of the Otamataha Trust, Mana Whenua and Tangata Whenua Puhirake Ihake said “We wholeheartedly support and approve the continuation of this project”.

A number of speakers in the Public Forum section of Monday’s meeting also expressed strong support for the project.

Mary Dillon, former Tauranga City Councillor said “This project is central to the entire wider Te Manawataki o Te Papa project and is the major expression of our joint cultural heritage. This development is our first highly visible integrated presentation of our cultural origins as people of Tauranga Moana”.

The overall budget for Te Manawataki o Te Papa is $306 million, of which a maximum of $151.5 will come from rates-funded borrowing.

The balance will come from external grants, philanthropic contributions and the net value of Council asset realisations (after any associated debt has been repaid).

Resolutions adopted by the Council include confirmation that the Civic Whare, Exhibition and Museum facility should proceed as programmed in the 2024-34 Long-term Plan; and authorisation for the Chief Executive to enter contracts on the Council’s behalf for the stage 2 construction works.