$90m committed, $50m in the ‘bank’
With the Lock down continuing I am managing to catch up with my backlog of Local Government Information and Meets Act requests in between drawing up new Spatial Plans for the Post Pandemic Recovery programs (that are slowly being formed). One LGOIMA was the $140m proceeds from the land sales inside the 600 hectare Panuku Our Manukau Transform urban regeneration program.
There was a persistant rumour that came out of both the Auckland Council Finance and Planning Committees that proceeds from Panuku sales would not all stay in the area it came from. Meaning some of the $140m would go elsewhere in Auckland.
To me this is very wrong. Whatever the proceeds from say Our Manukau stays 100% in Manukau. If other areas end short well then the Committees will need to leverage off the general CAPEX base and use Targeted Rates to reclaw it back over the life of the assets. The former Manukau City Council area should not pay for shortsightedness with assets further north pre Super City!
Subsequently I sent a LGOIMA request to Panuku about the proceeds from Our Manukau. The LGOIMA came back in which was a surprise given the Lock Down so I am deeply appreciative of Panuku for the reply back.
This is their reply:
Local Government Official Information and Meetings Act 1987
Re: Manukau Land Sales Proceeds
“Where did the $140m from Our Manukau land sale proceeds go please?”.
Thank you for your enquiry via Twitter, which we received on 9 March 2020, asking “Where did the $140m from Our Manukau land sale proceeds go please?”.
Panuku obtained the mandate to progress and develop a portfolio of council assets within the Transform Manukau location in mid-2016. Following this, in 2018, the Council’s Finance and Performance Committee approved a regional reinvestment approach for all the Transform and Unlock locations, based on forecast land sales, to enable Panuku’s regeneration programmes. It is on this basis that the council’s Long-Term Plan 2018-2028 confirmed this funding approach for our work, noting it is reviewed and agreed every three years. Such a system enables credible progress across all the locations Panuku operate in.
In Manukau, the programme has forecast an estimate of about $140m in land sales over the 10-year period. Of the 12 sites in the property programme, Panuku have agreed development outcomes and received gross sale receipts for the four most valuable properties. These four sites total about $105m in gross sales. The remaining eight properties which are mainly managed carparks should be able to achieve the remaining $30m+ or so of sales receipts over the next five to six years, subject to market conditions over time.
As for the investment side of our regeneration plans, it is based on previous planning such as council led Area Plans and local board plans and what the community needs are for the area over the long term, which continue to evolve and change. The programme is then planned in line with our Panuku generated and council approved High Level Project Plan’s (HLPP) overall objectives which were agreed with the council in 2016 and followed up by a spatial focused Manukau Framework Plan in 2017.
The overall location investment is made up of what Panuku lead, plus projects we partner on with the wider council groups, along with providing support on existing council group led projects, like the recently completed Manukau bus station and other upcoming transport projects like “Auckland to Botany project” and “Connected Communities project” etc. In addition, beyond these combined local investments, in parallel with targeted advocacy, leadership, confidence building and an inclusive approach to transformation we will all help to attract wider central government and private investment into the location.
Since Panuku began work in Manukau in 2016 this has resulted in significant investment such as the Westfield Manukau car park sale and the subsequent progressing of plans for development on their site. Similarly, the Manukau Institute of Technology have committed to choosing Manukau as their hub location, based in part on our plans for the area. New private
developments are also now planned, underway or even completed such as the Ramada hotel at the Vodafone Events Centre which was facilitated by Panuku and the council group.
All of this contributes towards the agreed vision and outcomes sought in the HLPP of accelerated delivery of housing choices, new employment and learning opportunities and business attraction which all together improve vibrancy in the centre. For Manukau, the current preferred programme of core Panuku led capital expenditure is in the order of $90m over 10 years. This indicative funding is confirmed as each project completes the necessary paperwork and internal and local board governance approvals.
The programme is updated each year. Planned or proposed investments include:
- The Puhinui corridor between the Botanic Gardens and Puhinui Domain (near
Plunket Ave and Cavendish Dr) – in stages with partners.
- Six central Manukau streetscape upgrades in stages with Auckland Transport.
- Upgrades to Hayman Park and Manukau Square, in stages with council.
- Several minor works projects including the Wiri playground, a pathway and a small
- Funding to support walking and cycling and street amenity as part of wider Auckland
Transport projects such as “Safe and Healthy Streets South Auckland project”,
“Airport to Botany project” and “Connected Communities project” programmes.
- A future possible investment in the Sports Bowl, subject to further exploration,
consultation and community needs.
- Possible future funding for a yet to be agreed community facility subject to future
needs and based on growth in the centre.
As you can see from the programme above, in all our projects we aim to partner with relevant crown entities, community partners, stakeholders, the business associations and other council organisations to help the core Panuku investment funds stretch further and enhance project integration and wider outcomes. All our investments are subject to approved documents, the council’s Long Term Plan funding priorities which are reviewed every 3 years, asset sales pipeline forecasts, market conditions over-time and the continuation of Panuku investment policies by the Governing Body.
The decision by Panuku Development Auckland to release the information contained in this response by was made by a senior manager with the delegated authority of Panuku Development Auckland’s chief executive.
So $90m is committed with $50m sitting in the bank although $30m of that $50m is not realised yet as the car parks in question have not been flipped as of yet. None-the-less the full $140m is (or rather should be) staying in Our Manukau thus South Auckland area. This is good as assets that were built up by the South should be recapitalised for the South.
It has come to mind that with Covid-19 hurting the economy including South Auckland I was looking at the list Panuku provided plus the $50m in the bank and was wondering how can we leverage both to kick start the South’s Economy again once we hit the Post Pandemic Recovery phase.
Central Government has the big stuff like the Third Main, Airport to Botany Rapid Transit (in partnership with Auckland Transport) and the Government Accommodation Hub – Manukau programs. Looking at the money and projects available Panuku is in a prime position to leverage that $140m on quick urban renewal win projects that can be started immediately and completed in six months to spur the Manukau Economy on fast. That said we need Auckland Transport to move with haste on several projects including cycle lanes, bus lanes and A2B once we are in the recovery phase as well.
$140m, it is staying in the South. But it can be used to restart the Manukau economy as well once we hit the Post Pandemic Recovery Phase.