Tag: Queen Elizabeth Square

$75m offer for AT’s Downtown Car Park

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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:

  1. The CV of the site is at $65 million. So is $75 million a good offer or a bit of a bargain here
  2. 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
  3. Would the loss of income from the parking building be a detriment to Auckland Transport and Auckland Council on upcoming capital expenditure programs
  4. 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.

 

‘Direction’ set on redeveloping downtown Auckland

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Report back and decision set for August

 

This morning I was at the Auckland Development Committee listening in on the debate around what to do with Queen Elizabeth Square in downtown Auckland. The debate was pretty good although some not necessary outbursts did mar the overall quality of the debate. I take my hat off to Councillor Cameron Brewer who articulated the main points around the Square debate very well today – as did Councillor Fletcher. Hopefully Councillor Brewer will get one of his fabled releases out as it will be a good one to see (for once).

Full commentary will be up tomorrow but in the meantime from Auckland Council:

First steps taken to redevelop downtown Auckland

 

Auckland Council has agreed in principle to negotiate the sale of Queen Elizabeth Square to Precinct Properties New Zealand Ltd in return for proceeds being used to provide quality downtown public spaces.

 

The square and the Downtown Shopping Centre sit above the route of the twin rail tunnels that will form part of the city rail link.

Precinct Properties proposes major redevelopment of its shopping centre and surrounding properties which it owns.

Proceeds from the commercial sale of the 2000m2 public square could be used to develop an alternative public area, such as Admiralty Steps on the Quay street waterfront.

A plan by Precinct Properties for the comprehensive redevelopment of its property holdings in the area has also opened an opportunity to reintroduce aspects of historic Little Queen Street which was lost in earlier redevelopments.

Council staff believe Precinct Properties’ plans will also link with council proposals for the transformation of Quay Street waterfront.

“We are in the very early stages of proposals for this area,” said Deputy Mayor and Auckland Development Committee chair Councillor Penny Hulse. “With the city rail link tunnels running below Precinct Properties buildings, it makes sense to align the tunnel construction with the company’s development programme.

“Working with the company will produce the best outcome for all parties, including new public amenities at no cost to ratepayers.”

—ends—

 

Note that Queen Elizabeth Square has NOT been sold. However, the Council through today have made their intent known that they do wish to sell the Square back to the private sector.

A decision at the Auckland Development Committee in August will decide whether to actually sell the Square or not.

 

Full commentary tomorrow