Should the Council take the money and invest?
I saw this come up from Stuff earlier this morning:
Council offered $75m for car park
ELLEN READ Last updated 09:00 06/06/2014
Auckland Council has been offered $75 million by two businessmen keen to snap up one of its inner city car park buildings.
James Brown and Simon Rowntree, who run Tournament Parking, said their offer for the multilevel 890-space Downtown building on Customs Street would give the council funds to fast track rail-link plans without having to consider selling two other high profile CBD sites.
Recent reports have suggested the council might sell a section of Queen Elizabeth Square and privatise sections of Queens Wharf.
Brown and Rowntree said the offer was unconditional. They visited council authorities this morning with a $7.5m deposit cheque this morning and said their proposed settlement date for the remaining $67.5m was July 1.
The Council has yet to respond to the offer.
The pair said they were prompted to make the offer after proposals were made to privatise inner city public space including Queen’s Wharf and Queen Elizabeth Square.
“The rail link is essential for Auckland but it’s wrong for the council to sell public space to fund it,” their spokesman said.
“This offer would keep Queen’s Wharf and Queen Elizabeth Square in public ownership while providing $75m cash to kick-start Mayor Len Brown’s vision for long-awaited first-world public transport.”
They say the $75m offer was a significant premium on the carpark’s value and included clauses preventing them from increasing casual parking rates, presently $3 an hour at the Council-owned site, above the rate of inflation for at least five years.
Tournament Parking casual rates for some Auckland sites are $4 for half an hour
Source: http://www.stuff.co.nz/auckland/10126538/Council-offered-75m-for-car-park
A rather interesting development this morning that no doubt will have Auckland Transport, Council, and the wider city debating over the offer and whether to accept it or not.
I suppose the questions I have over this offer would be the following:
- The CV of the site is at $65 million. So is $75 million a good offer or a bit of a bargain here
- Will Tournament who if successful in their offer redevelop the site according to the wishes of the City Centre Master Plan. If not then would it be better if Council via Auckland Transport (who currently own the site) to hang on to it
- Would the loss of income from the parking building be a detriment to Auckland Transport and Auckland Council on upcoming capital expenditure programs
- Does this need to go through the Auckland Transport Board and the main Council Governing Body before any cheques are accepted for the parking building.
We all await a reply from Council and Auckland Transport on the offer.





