auckland council property limited outline

8/13/2019 Auckland Council Property Limited Outline

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Report to Auckland Council PropertyLimited (ACPL)

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T C d T f i

TABLE OF CONTENTS

1. EXECUTIVE SUMMARY AND KEY RECOMMENDATIONS .......................................... 1

2. ACPL PROJECT ADVISORY TEAM BRIEF ................................................................... 4

2.1 Special Notes to this Report .................................................................................. 4

3. APPROACH AND METHODOLOGY .......................................................................... 54. THE IMPORTANCE OF TOWN CENTRES AND TRANSFORMATION PROJECTS ............. 6

4.1 The Importance of Town Centres .......................................................................... 6

4.2 The Importance of Transformation Projects ......................................................... 7

5. KEY MARKET MESSAGES ....................................................................................... 8

5.1 Less is More ........................................................................................................... 8

5.2 Council Cannot Make the Market...................................................................... 85.3 People Behave and Act Communally .................................................................... 8

6. COMMERCIAL DEVELOPMENT CRITERIA .............................................................. 10

6.1 Critical Success Factors, as Identified by Mercer Delta Consulting ..................... 10

6.2 Additional Criteria ............................................................................................... 11

7. COUNCILS INVESTMENT IN TRANSFORMATION PROJECTS AND TOWN CENTRES.. 11

8 TOWN CENTRES 12


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1. EXECUTIVE SUMMARY AND KEY RECOMMENDATIONS

The project team was required to provide a commercial and business perspectiveon the selection of Aucklands Transformation Projects and the critical Town

Centres, as outlined in theAuckland Unleasheddiscussion document.

This report has considered a variety of factors in the evaluation of specific issues

around Town Centre and Transformation Project investment. These have included

the following:

Evaluation of a commercial development criteria; The hierarchy of Town Centres and the appropriateness of this approach; A hierarchical and intervention/timeframe based investment strategy; and Particular details relevant to each Town Centre/Project.

The Project Advisory Teams focus and brief was on Town Centres and

Transformation Projects. As a result, it should be noted that the following has

been excluded from evaluation in this report:

The City Centre.The Project Team has previously addressed this issue in itsreport entitled City Centre Master Plan Overview Report to ACPL, dated 15

July 2011.

The Airport/Wiri region. It is not seen by the Council as a Town Centre or aTransformation Project. However, there is a need for Council to recognise the

Airport/Wiri region as a significant area for Aucklands future regional

economic development.


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in order for it to be successful from an economic perspective and to enable it to

contribute positively to the region.

Key Recommendations

In considering the variety of factors affecting Town Centres and Transformation

Projects, we set out below our key recommendations for Town Centre and

Transformation Project development and investment:

There needs to be a prioritisation on the core Town Centres that Councilwishes to focus on, evaluated on critical success factors and commercial

development criteria (these are detailed further in this report). A tight area offocus combined with significant investment will result in the market

supporting Council and investing in such Town Centres. Development and

investment should be based on what is needed at the present time, as

opposed to a 'build it and they will come' approach.

The prioritisation of Town Centres is important. However, the debate on thehierarchy of Town Centres should not distort the drive for the right results.

The focus should be on deriving outcomes rather than settling hierarchical

arguments. From the markets perspective, it will focus on opportunities

where there are clear signals from Council as to where investment is

targeted.

The proposed hierarchy provided in the Draft Auckland Plan is supported,with the inclusion of two new categories; Primary Centres, after the City

Centre, and Mega Centres/Malls, after Metropolitan Centres.

Manukau and Albany should be recognised as Primary Centres within thei i t th i i t ithi th R i Th P i C t


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supported and warrant on going investment, subject to confirmation of

tangible net economic benefits and agreed investment priorities across the

region.

The Southern Initiative Area is supported and is generally considered to be asituation where a complex multi agency approach is required, led by Central

Government. Any material Council investment should be made in this

context.

Each Transformation Area has its own particular issues (as outlined in thisreport), however, they also have the opportunity to contribute significantly

to the future growth and development of the Auckland Region. They alsohave the opportunity to provide important residential and employment

opportunities. Such outcomes need to be maximised within these projects.

It is recommended that the growth corridors should be aligned to the majorinfrastructure and transport routes in order to maximise efficiencies.

In terms of the seven Priority Growth Areas outlined in the draft AucklandPlan provided to the Project Team (these being the City Centre/Waterfront,

Hobsonville, New Lynn/Avondale, Onehunga Area, Tamaki, Takapuna and

Warkworth and/or Pukekohe), these are all supported with the exception of

Warkworth. It is considered that Pukekohe presents more of an opportunity

than Warkworth.

For a high level summary of the Project Teams proposed impact that each of the

centres/projects assessed in this report could have on the Region's economy and

the level of Council investment required for this to occur, refer Appendix 1.

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2. ACPL PROJECT ADVISORY TEAM BRIEF

The project team was required to provide:

A commercial and business perspective on the selection of AucklandsTransformation Projects and the critical Town Centres, as outlined in the

Auckland Unleasheddiscussion document.

A succinct, high-level overview of the Town Centres and TransformationProjects focusing on market trends, key strategic issues, opportunities,

concerns, strengths and gaps in relation to the Auckland region.

It should be noted that the Airport/Wiri area has been omitted from mentionin this report as it is not seen by the Council as a Town Centre or a

Transformation Project. However, there is a need for Council to recognise the

Airport/Wiri area as a significant centre for Aucklands future regional

economic development. We have addressed this issue in previous reports to

ACPL.

2.1 Special Notes to this Report

2.1.1Growth Corridors and Development Areas A critical element of managing Aucklands growth will be development within

the identified growth corridors as provided in the Auckland Unleashed

document, and the supporting physical and community infrastructure

investment which is targeted for these corridors. Transport is likely to be the

biggest driver of this redevelopment, but other infrastructure remains

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opportunity that Aucklands proximity to the Waikato, as the engine room of

New Zealands leading industry of international scale and quality (i.e., dairy,

agriculture and biotechnology), will provide in the future. There is significantopportunity for Auckland in the economic involvement, support and servicing

of this industry.

Auckland will benefit from this (as will the Waikato) in economic returns asmuch as in the opportunity that such a corridor presents to accommodate

future growth in the South Auckland/Northern Waikato "super region".

The significant existing investment in rail, road and broadband infrastructurebetween Auckland and Hamilton also offers significant opportunity forProvincial Centre development along this major transport corridor. Further

investment in this corridor may yield large gains for Auckland and relieve

pressures elsewhere within the system. The relative merits of leveraging this

infrastructure against alternate transport and economic investment is at least

worthy of consideration in the next 2-5 years.

There is a significant opportunity to provide both residential and businessland and to accommodate a material number of businesses and residentsover the next 20-30 years.

Pokeno and areas south of Bombay are considered to be attractive to themarket and the southern growth corridor should consider carefully the

impact and importance of such areas.

With the main New Zealand market and economy located in Auckland and tothe south, vacant land supply south and the connections to primary

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Transformation Projects.

Review the hierarchy of Town Centres set out in the Auckland Unleasheddiscussion document, both in terms of the approach and the Town Centres

themselves.

Review and comment on the critical Town Centres that should be focused onin the next 3 - 5 years. The analysis of these Centres draws a distinction

between those that will need significant intervention from the Council,

compared to others where the market will respond provided the Council

delivers its core functions with excellence.

4. THE IMPORTANCE OF TOWN CENTRES AND TRANSFORMATION PROJECTS

Town Centre and Transformation Projects require a new way of thinking anddoing. In some instances, councils have previously relied only on land use

based planning and an urban design outcomes approach to achieve Town

Centre rejuvenation. While doing these elements well is essential, it is only

part of the solution.

To be successful Council needs to implement a strategy which recognises themulti-layered complexity and the need for a comprehensive and integrated

solution. As part of this process, it is fundamental that Council understands

and considers the implications of development on the nature, character and

role of a place. Issues such as market trends and commercial viability also

need to be taken into account.

This will require a multi-agency, partnership approach through an integratedd i i ti t l i h t t th d t iti


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communities they serve. They provide the breadth of services from retail,

food and beverage, public community services (e.g., libraries and

community centres), private community services (e.g., medical facilitiesand banks) and other community infrastructure. Town Centres also

reflect the social structure of the various parts of the region and are

important places for social connection.

- Tourism. Town Centres are, or they can be, significant destinations. They

are an attractor of people from the communities they serve, but also from

other Aucklanders and visitors to the area.

The Plans growth strategy relies on intensification around and within manyof Aucklands Town Centres. For this to be successful the following is

required:

- The right Centres need to be targeted for growth. Such Town Centres, and

their surrounding suburban areas, should be ones which can

accommodate and respond to these opportunities, without compromising

the ability to service such growth.

- The preservation of the soul of a Town Centre is crucial. Aucklandneeds to reinforce and leverage off its distinctive character.

- Identified growth centres and the accompanying framework for

development must reflect market opportunity. Growth relies on the

market delivering accommodation and employment. Targeting the right

centres and enabling growth of those centres in a way the market will

respond to is crucial.

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partnerships with business, the community and the voluntary sector.

A Transformation Project must be a game changer. It must result in ademonstrable turnaround in market perception. It must generate a paradigm

shift in the economic and social value of a region, Town Centre or place. In

this way, Councils initial actions need to stimulate a transformation process

which the market will pick up and deliver on. The reality is that the Council

cannot afford to perform all of the necessary transformational change (i.e.,

for every one dollar of public spend it will need to attract multiple dollars of

private sector investment). If the Councils initial actions do not result in this

paradigm shift in the market, then it is questionable whether the investmentis a priority.

5. KEY MARKET MESSAGES

5.1 Less is More

There is a significant risk of the Council spreading its resources too thinly and,as a result, not achieving its growth objectives.

There needs to be a prioritisation of the core Town Centres that the Councilwishes to focus on. A tight focus and a significant investment will result in

the market supporting the Council and investing in these Town Centres.

When the market responds, the Council can move on to the next Centre(s) ofpriority.

Sound economic modelling and demand forecasting must be a critical part ofth C il d i i ki


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work and live independently undertaking many business transactions from

home. However, the underlying communal and tribal nature of people will

always mean a critical role for Town Centres. We tend to live in the same orsimilar areas; we want to meet together for work and social contact; and we

want to be part of a community. While the nature of the way we do business

and the economic arrangements within Town Centres will undoubtedly

change over time, the role of the Centre as a focus for the community will

remain.

Council needs to review its expectations of where and when growth willoccur. These need to be considered within the framework of a specificbusiness case aligned with regional economic priorities and timeframes for

infrastructure investment.

It is necessary for Council to have an understanding of the historical netabsorption by different property types in the relevant Town Centres. This will

ensure that Council does not estimate and facilitate more demand than

actually exists. Vacancy surveys can underestimate the amount of space

actually available, as they omit from their calculations owned or leased

property which owners or tenants are trying to dispose of as being surplus to

their needs.

Auckland needs to be a more compact, efficient, intensified city, to minimiseurban sprawl. Intensifying Town Centres is a fundamental part of this growth

strategy. Complementing this will be intensification in the suburban areas

that surround the Town Centres. Getting this right in terms of the pitchto

the market and the planning framework are fundamental success factors for

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6. COMMERCIAL DEVELOPMENT CRITERIA

6.1 Critical Success Factors, as Identified by Mercer Delta Consulting3

The following success factors relate primarily to the governance arrangements

necessary for regeneration and revitalisation projects. While not all these success

factors may apply fully in the New Zealand context (at least as a prerequisite for

successful regeneration projects), nevertheless the list below provides a robust

and valid assessment of international best practice:

Coordination among public sector stakeholders. This issue was thefundamental driver behind the reform of local government in Auckland. Thesingle super city authority with its CCOs brings this coordination to Auckland

for the first time. The issue will be for the size and complexity of the

organisation to continue to leverage the advantages of a single coordinated

approach. For larger Transformation Projects this may also require better

integration and collaboration with Central Government agencies.

A viable funding model. Stable and multi-year funding together with theutilisation of new and innovative financial tools.

Control over land. Assembling parcels of land and leveraging theopportunities from land ownership is a fundamental driver of regeneration

projects. Control can be obtained both by direct ownership and indirect

control including master plans and regulatory mechanisms.

Comprehensive development plan.This sets out a logical progression of keycomponents.

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catalyst for driving change. Without these perceived or real milestones, there

is a danger of significant slippage. The Waterfront redevelopment for the

catalyst of the Americas Cup and Rugby World Cup are good examples.

Desire for change. Agreement that the status quo is unacceptable, thepush-pull of change. The push to address a serious issue, the pull of a

preferred outcome.

6.2 Additional Criteria

In addition to the relevant criteria above, the following are considered to be

critical factors to weigh and determine the prioritisation of investment in TownCentres and Transformation Areas.

Accessibility/proximity to key infrastructure which have capacity for furthergrowth. This includes amenities, transport corridors and services such as

health, education, and security.

Accessibility/proximity to higher value well developed areas. The reality isthese areas reflect high discretionary spend opportunity. If Council offers

excellence in its normal business practises, then the market is enabled torespond, and, in many cases, thrive.

Accessibility/proximity to existing significant market investment. Accessibility/proximity to established economic growth. Deprivation indices. Centres in areas of high deprivation are typically

constrained or under pressure. High deprivation areas tend to maintain a

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These are areas where Council picks winners. They are TransformationAreas where there will be a focused, committed investment. They are also

areas where the market will respond to Council prioritisation.

2. Business as Usual, with Excellence

These are areas where a small amount of upfront investment, with goodplanning and execution, will create substantial, economic and social value.

In these instances, the Council needs to play an enabling role. It is aboutdelivering the normal services but to a very high standard. These business as

usual services include planning and regulatory regimes, through to master

planning and capital works and services.

The Council can be an enhancer of development or an inhibitor ofdevelopment through its normal business. In previous reports to ACPL on the

City Centre Master Plan and on the Auckland Unleashed discussion

document, we have identified the toolbox of measures which, if adopted, will

significantly assist Council to become an enabler of quality development.

3.

Centres that will need to reinvent themselves There will be a range of Centres which need to fundamentally reinvent or re-

position themselves if they are to be successful. There are a large number of

examples where this has been done.

These reinventions are typically underpinned by a collaborative workingrelationship between Council and the business sector. Ponsonby and

Balmoral are examples of where this has occurred.

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Figure 1 below outlines a proposed hierarchy of Town Centres.

*This is a new Town Centre Hierarchy category introduced by the Project Team and not recognised in the Draft Auckland Plan

Fi 1 P d Hi h f T C

CityCentre

Primary commercial, employment andcultural hub at a regional scale.

PrimaryCentres*

Important retail, employment andresidential function at a sub regionalscale.

MetropolitanCentres

Retail and social function at a localcommunity level.Town Centres

Significant infrastructure

spend on transport assetsand opportunity for growth.

Growth Corridors &Development Areas*

Satellite town centresand rural fringe area.Local & Provincial Centres


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It would benefit from the overview of the City Transformation Unit. Thecommitment and focus this brings is beneficial. It sends a signal to the

market that Council is committed to continuing investment in order tostrengthen Manukau.

The key issues Council should focus on are:- The significant opportunity the new rail link to Manukau City Centre will

provide. This should further boost the preference for office location in

this area.

- Opportunities to improve the walkability of the Centre, and in particular

to connect the rail station to the Centre.

- A more sophisticated entertainment and retail offer.

- The need to promote a residential base within Manukau City Centre. It

is this mix of office and residential use which will give Manukau a 24-

hour urban lifestyle.

- It is recognised that the reverse sensitivity aspects of the airport flight

path do complicate residential opportunities.

- Support the social policy initiatives and approach reflected in the

broader Manukau Community and the opportunities the Manukau City

Centre derives to support these policies.

8.3.2 Albany Albany is a centre with good bonesbut with little soul.


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Metropolitan Centres that can serve sub-regional catchments. In addition, we

recommend that Silverdale be considered as a further Metropolitan Centre based

on the discussion further set out in Section8.4.9 in this report.

It is considered that Henderson, Sylvia Park, Orewa and Westgate should be

categorised as Town Centres, for the reasons outlined in their respective sections

below.

8.4.1Newmarket Newmarket is a thriving centre. This falls within our business as usual with

excellence category.

The market is responding well and simply needs enabling andencouragement.

The Lion Nathan site has the potential to significantly impact on Newmarket.This is the type of development which would respond well to the toolbox

approach outlined in the previous reports to ACPL, such as the City Centre

Master Plan Overview Report andAuckland UnleashedOverview Report.

8.4.2Manukau Manukau is considered to be a Primary Centre and one which serves a

significant regional function for the southern part of the region. It has a level

of importance above that of a Metropolitan Centre. Refer to Section 8.3.1

above for specific comments relating to Manukau.

8.4.3Takapuna


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8.4.4New Lynn/Avondale The New Lynn/Avondale area is considered to be a strong Metropolitan

Centre with all the attributes that make it more likely as a Primary Centre for

the west. It is also considered to be a Transformation Project.

To date New Lynn is a significant success story in achieving the rejuvenationof the Centre and has the opportunity, when considered with Avondale, to

further cement this success with market investment. It is recommended that

the New Lynn Master Plan be proceeded with, subject to the comments

below.

There is concern over whether the yields of the Crown properties andVuksich and Borich sites will achieve the densities contemplated in the

Master Plan. Nevertheless, these areas will transform the locality and it will

significantly benefit from a residential redevelopment. Even at reduced

densities, which the Project Team considers more realistic, these

redevelopment areas will significantly add to New Lynn.

New Lynn is supported as a priority for employment and population growth.However, we suggest that Council give consideration to New Lynn/Avondaleas an economic growth node, investigate linking with Avondale and review

opportunities that can be provided from the racecourse asset. To this end,

Council should review the Avondale development opportunity study and

Highbury triangle development plan.

8.4.5Henderson

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the south. It is recommended that the current Town Centre strategy is

reviewed, modified and updated to meet the Metropolitan Centre objectives

relevant to the new super city structure.

It is recommended that a revised Metropolitan Centre" strategy be adoptedand implemented.

A business as usual with excellence approachis required. The significant intensive residential development north of Papakura and the

Addison development and future MacLennans Block would significantly

benefit from a strong connection to Papakura. Abandoning the proposed

Glenora rail station in this location has had a significant detrimental impact

on this opportunity.

8.4.8Albany Albany is considered to be a Primary Centre and one which serves a

significant regional function for the northern part of the Auckland region. It

has a level of importance above that of a Metropolitan Centre. Refer to

Section8.3.2 for specific comments relating to Albany.

8.4.9Orewa/Silverdale In terms of size, capacity for growth and a range of functions, Orewa is

considered more appropriate as a Town Centre rather than a Metropolitan

Centre. Orewa needs to become a seaside village Town Centre offer.

Our view is that Silverdale be given consideration as a Metropolitan Centred l f


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assembly and regeneration.

8.4.10 Westgate As with Sylvia Park, Westgate is primarily a retail complex with limited office,

residential and employment opportunities.

The Centre is yet to evolve to the breadth of social and community servicesinherent in metropolitan centres.

The Centre lacks a residential base to support a 24 hour Centre. While there is considered to be growth opportunities within the ownerslandholdings, this is considered to be more at a localised scale. Overall, it is considered more appropriately categorised as a separate Mega

Centre/Mall category as opposed to a Metropolitan Centre.

8.5 Mega Centres/Malls

Auckland benefits from a number of Mega Centres or malls which, inhierarchy terms, lie somewhere between a Town Centre and a MetropolitanCentre. These areas, like Sylvia Park, St Lukes, Westgate and Botany, are

major generators of retail and economic activity. They are major destinations

in their own right.

They have a high reliance on private car access, and this element drives thedesign and layout of these Centres.

The more recent Centres and the upgrade of existing Centres have sought tod b l f bl


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8.6 Provincial & Local Centres

Satellite Town Centres (e.g., Pukekohe, Warkworth, Helensville), along withthe rural fringe areas, will continue to be an important part of the growth

strategy. While these are of significantly less importance and impact than

intensification and Greenfield policies, they still warrant a considered

planning response from Council.

A number of Aucklanders enjoy and target the lifestyle that rural blocks andProvincial Towns provide. This lifestyle choice is an essential part of the

diversity that makes Auckland an attractive place to live and work. This is part

of Aucklands competitive edge, especially when compared to some majorAustralian cities.

In terms of economic development, while the trend is for major businesses tolocate close to markets, transport and labour, there are distinctive examples

where firms have chosen a satellite location to leverage the workforce

available in these regions

An important part of the Auckland region is a significant rural economy,which generates employment and economic development.

9. TRANSFORMATION PROJECTS

The Transformation Projects within the region generally fall into two categories -

Greenfield Transformation and Brownfield Transformation. Essentially Greenfield

Transformation relates to fresh development of a previously undeveloped area.

On the other hand, Brownfield Transformation relates to the reassessment of a

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investment by Council, particularly investment which does not result in a

commercial return.

9.1.2NorSGA (and Hobsonville) NorSGA is a very significant area of vacant land for release to the market.

The wider NorSGA/Hobsonville/Westgate area should be considered

together when considering this project.

An important factor is the need to manage the release of land carefully so asnot to deluge the market.

Council needs to recognise the impact of high commercial vacancy rates inthe Albany basin and the significant competitive elements between Albany

and NorSGA.

Council should develop the business case and test it to ensure NorSGAprovides its perceived regional benefits. If it is justified, then the staged

release of infrastructure spend is supported.

Council should pace the staging of the NorSGA development and consider thebusiness case for further Council investment in future stages within the

context of its broader Auckland region investment priorities (i.e., stages 2 and

3).

There is a need to build better connections between the new retaildevelopment and Westgate.

The Council sought feedback on two specific questions. These are outlinedbelow along with the responses:


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9.2 Brownfield Regeneration

The Brownfield Regeneration projects which are considered to betransformational include the following:

o The City Centre/Waterfront (refer sections8.2 and10.1.1);o New Lynn/Avondale (refer sections8.4.4 and10.1.3);o Tamaki (refer section10.1.5); ando The Mangere Inlet North (refer section10.1.4).

Each of these areas has been addressed in detail throughout this report. Therecommendations identify possible issues and opportunities that can enablethe successful regeneration of these areas into the future.

9.3 Community Renewal

9.3.1 Southern InitiativeThe Southern Initiative is supported, with the following qualifications:

The market will generally be a follower of Central Government and LocalGovernment initiatives. As the viability and quality of the community lifts,

private capital investment will follow.

It is considered that a complex multi agency solution is required. This needsto be led by Central Government and supported by Local Government. Any

material Council investment should be made in this context.


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In addition to the points made in regard to New Lynn/Avondale MetropolitanCentre in Section8.4.4 of this report, we recommend the development of a

high level implementation plan and timeline to provide practical actionswhich will give effect to the New Lynn master plan.

10.1.4 Onehunga Town Centre and Suburban Opportunity Area This report identifies the Mangere Inlet North area as being one of significant

opportunity, which is supported as a priority for investment. The area

includes Onehunga, Te Papa and Mangere North. It is also considered to be

a Transformation Project.

The area would benefit from a Master Plan approach that links together thebroad coastal margin in this area. The value of coastal development in this

area is derived from both commercial and public amenity values.

The light industrial area of Onehunga/Te Papa can be built upon to improveand increase employment opportunities.

The Onehunga Town Centre can benefit from a development opportunitystudy perspective including opportunities for Council owned land.

The market is interested in Onehunga. The centre has a number of inherentlyattractive qualities, such as its proximity to transport connections,

employment zones, amenities, and the foreshore.

Council will need to address some planning constraints (such as residentialzoning issues for intensification) to ensure the success of this area.

It is recommended that regulatory rules are reviewed in order to allow


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As a result, the prioritisation of this centre is not supported when compared

against broader regional priorities.

Warkworth has a critical servicing role for the Matakana-Leigh corridor andMahurangi Peninsula, as well as the rural hinterland.

In many ways, Matakana is taking over the quirky village visitor role fromWarkworth.

If the major realignment of State Highway 1 proceeds, then Warkworth willbe impacted. It will be enhanced by losing the commercial heavy vehicle

traffic and high volume private vehicle traffic. However, in addition it will also

lose out on the casual stop offvisitor, which is important for keeping the

local retail and food and beverage industry viable.

Given the difficult prioritisation of scarce resources the Council faces,Warkworth is not a major priority. However, it does warrant some focus

from Council to give assurance that the normal functions and services which

Council offers can, and will be, delivered with excellence.

10.1.8 Pukekohe The Pukekohe/Paerata/Tuakau/Pokeno area offers significant opportunities

for growth in the South.

Connectivity to rail, the Waikato, Auckland and the airport are all factorswhich over time can and will assist. The potential for growth in this area is

significant. This needs to be balanced against the important rural function

these areas provide.


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11. ROLE OF COUNCIL

The conclusion of this report is that there are two fundamental roles Council can

take in Metropolitan/Town Centres and major Transformation

Projects/Development Areas/Growth Corridors. The first we have called

Business as Usual with Excellence. The second is referred to as

Transformational.

11.1 Business as Usual with Excellence

In the majority of situations, Council already has the functions and providesthe services necessary for the market to respond.

Council needs to be an enabler of the market and not act or be perceived as aconstraint.

Being an enabler drives confidence in the market which fundamentallyunderpins investment and growth. To be an enabler is about the

organisations culture and actions. This approach is about Council

undertaking its current functions and delivering its current services to a

consistently high standard.

The functions and services which Council can deliver and which, if deliveredwith excellence, will be seen as enabling market investment and

development in Town Centres, are:

- A supportive, quick, assured regulatory and consenting process.

- A strong and supported vision with community buy in, which is tailored


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to trigger investment in the area or to deliver on Councils broader planning

aspirations.

Other key aspects are:- Council should deliver the core elements set out above under the

Business as Usual with Excellence approach.

- The fundamental matter is the assembly and strategic packaging of key

land holdings. This can be either exclusively by Council or in partnership.

- New capital expenditure initiatives can significantly impact investment

confidence. This can range from new public facilities to streetscape andinfrastructure improvements.

- Catalytic projects, under ACPLs role, are an important tool to prove the

market. These demonstration projects become a benchmark, not only for

the design of an area, but in terms of demonstrating the investment

potential and the market attractiveness of certain forms of development.

- Large project account management. Assistance to navigate significant

projects through the Council system and its CCOs is a critical advantage.The account management programme in the resource consent

department and the City Transformation team go a significant way

towards this. Complementing this must be the commercial perspective,

which can either be gained in-house or brought in via a contract or

consultant to individual projects.

Before embarking on individual Transformation Projects, Council needs to


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Recognise that the market is cyclical. Laying the groundwork for the nextemerging cycle is a legitimate role of both the Council and ACPL.

Focus on areas requiring intervention. If the market is going to respondanyway then there is no need for ACPL intervention. If there is no market

response then ACPL is likely to be at risk of significant energy and cost for

little return. The focus should be directed on those catalytic projects which

will result in an appropriate market response. Partnerships should be a

preferred modus operandi for ACPL.

Coordinate private sector, CCO and stakeholder involvement and leadopportunities where it can utilise its holdings to influence outcomes thatmeet Council objectives.

If Council does decide ACPL needs to have a focus on affordable housing,there is significant opportunity in the Housing New Zealand portfolio to

promote urban intensification and affordable housing policies.

Provide a rigorous analysis of the development opportunities in theTransformation Project areas. Such a role may entail:

- Identification of the key Council landholdings and how those landholdings

can stimulate broad investment and quality development.

- Identification of land that can be divested to create a fund for further

strategic land purchases and development.

- Identification of critical partnerships that can be established in whatever

form to promote quality development.


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Appendix I:COUNCIL DRIVENHigh Council Investment/Intervention Required

MARKET DRIVEN

Low Council Investment/Intervention Required

Low Impact

HEIRARCHY KEY

(in terms of resource and effort)

Immediate Priority

Requires Review as a

Mid-term Priority

Low Immediate Priority

*Note that the City Centre is not

included in this Diagram, as it has

been previously and separately

covered in the Overview Report to

ACPL on the City Centre Master

Plan

Takapuna

Orewa

Tamaki

Sylvia Park

New Lynn

Silverdale

Henderson

Papakura

Onehunga/

Mangere

Inlet

NorSGA

Albany

Manukau

Flat Bush

Newmarket

Pukekohe

High Impact

auckland council property limited outline

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