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Note: The reports contained within this agenda are for consideration and should not be construed as Council policyunless and until adopted. Should Members require further information relating to any reports, please contactthe relevant manager, Chairperson or Deputy Chairperson.
I hereby give notice that an ordinary meeting of the Strategy and Finance Committee will be heldon:
Date:Time:Meeting Room:Venue:
Thursday, 6 June 201310.00amReception Lounge Level 2
Auckland Town Hall301-305 Queen Street
Auckland
Strategy and Finance Committee
OPEN ADDENDUM AGENDA
MEMBERSHIP
Chairperson Cr Penny WebsterDeputy Chairperson Cr Des Morrison
Councillors Cr Anae Arthur Anae Cr Richard Northey, ONZMCr Cameron Brewer Cr Calum PenroseMayor Len Brown, J P Cr Dick QuaxCr Dr Cathy Casey Cr Noelene Raffills, J PCr Sandra Coney, QSO Cr Sharon Stewart, QSMCr Alf Filipaina Mr David TaipariCr Hon Chris Fletcher, QSO Mr J ohn TamihereCr Michael Goudie Cr Sir J ohn Walker, KNZM, CBECr Ann Hartley, J P Cr Wayne WalkerDeputy Mayor Penny Hulse Cr George Wood, CNZMCr Mike Lee
(Quorum 11 members)
Tam WhiteDemocracy Advisor
4 June 2013
Contact Telephone: (09) 307 7253Email: [email protected]: www.aucklandcouncil.govt.nz
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ITEM TABLE OF CONTENTS PAGE
6 Local Board Input 5
6.1 27 Lake Road, Devonport - Disposal Recommendation Report 5
6.2 Holy Trinity Cathedral redevelopment proposal 5
9 Holy Trinity Cathedral - grant proposal 7
PUBLIC EXCLUDED
17 Procedural motion to exclude the public 51
C2 Proposal to acquire land in Clevedon for Open Space 51
C3 Proposal to acquire land in Waiheke for Open Space 51
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6 Local Board Input
6.1 27 Lake Road, Devonport - Disposal Recommendation Report
Purpose
1. To provide an opportunity for local board members to address the Strategy andFinance Committee.
Executive Summary
2. Chris Darby, chairperson Devonport-Takapuna Local Board requested to speakregarding the Disposal Recommendation Report in particular 27 Lake Road,Devonport.
Recommendation/s
That the Strategy and Finance Committee:
a) thank Chris Darby for the presentation.
6.2 Holy Trinity Cathedral redevelopment proposal
Purpose
1. To provide an opportunity for local board members to address the Strategy andFinance Committee.
Executive Summary2. Desley Simpson, chairperson Orakei Local Board and Shale Chambers, chairperson
Waitemata Local Board will address the Committee regarding the Holy TrinityCathedral redevelopment proposal.
Recommendation/s
That the Strategy and Finance Committee:
a) thank Desley Simpson and Shale Chambers for the presentation.
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Holy Trinity Cathedral - grant proposal
File No.: CP2013/11294
Purpose1. To consider a proposal to grant $3 million towards the $12 million capital works which will
expand the number, quality and range of activities that can be undertaken in the HolyTrinity Cathedral precinct and to protect and restore the historical elements containedwithin.
Executive Summary2. The Selwyns Vision project (the project) is a $12 million redevelopment of the Holy Trinity
Cathedral precinct made up of five core elements. The project will offer the widerAuckland community who use the areas of the Cathedral precinct, a new multifunctionspace for events of approximately 120 people. It will also increase accessibility for
disabled users, improve the flexibility of the precinct as a whole and provide for therestoration of two church organs, one of which is 130 years old.
3. The Project Governance Committee has asked Council to consider granting a sum of $3million towards the total project cost of $12 million. A key benefit to Council is that nooperating costs are associated with the redevelopment of these assets, which are alreadywidely used by the Auckland Community.
4. Approving a grant to this project is consistent with existing and emerging Council policy.The Auckland Plan outlines a partnership approach to the development of infrastructure,including social infrastructure. The draft Unitary Plan outlines three policies aimed atredeveloping existing social infrastructure and working with third parties to deliver multi-purpose buildings for community use.
5. The previous local authorities of Auckland had a long history of supporting worthy churchbased endeavours through various grants and contributions. An Auckland City Councilgrant to support capital works at St Matthews in the City was given with community accessassured via an adopted agreement.
6. Auckland Council currently supports the endeavours of many churches throughout theregion, either with grants to church halls through the Facilities Partnership Fund or suchthings as rates rebates and community leases.
Recommendation/sThat the Strategy and Finance Committee:
a) receive the report on the proposal to grant $3 million towards the completion of theHoly Trinity Cathedral as described in the Selwyns Vision project.
b) approve a grant of up to $3 million towards the completion of the Holy TrinityCathedral as described in the Selwyns Vision project, subject to the followingconditions:
i) that no further funding will be sought from Auckland Council in support ofcapital or operational costs associated with the Selwyns Vision project asdescribed in this report.
ii) that the hireage rates continue to be reviewed annually with a view to
maintaining affordable community access to the hireable elements of the HolyTrinity precinct.
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iii) that a community access agreement is developed with Council officers andagreed to.
iv) that if fundraising efforts over the course of the project, attract more than $12million, the council funding will be decreased accordingly rather than theproject scope being increased.
c) note that the grant would be funded from borrowing and be amortised over thirtyyears meaning that the first cost to ratepayers of approximately $12,000 would occurin the 2014-2015 year and thereafter will not exceed $270,000 in any one year.
d) note that the grant would be uplifted in two portions; $1.5 million in 2014-2015 and$1.5 million in 2015-2016.
e) note that the project includes the integration of the Historic Places Trust category 1St Marys church and the restoration of the largest surviving George Croft organwhich is listed in the New Zealand Historic Organ Trust.
Discussion
The project7. An independent resource study was undertaken in 2010 to evaluate whether a Cathedralredevelopment project had support from within the Anglican community and the widerAuckland / New Zealand community, and whether it was likely to succeed financially. Theresponse was positive. Following that, the diocese formed the Project GovernanceCommittee in 2012 to oversee the design, funding and execution of an expanded Holy
Trinity Cathedral precinct. Fundraising began in J uly 2012 and stands at approximately $5million. The project is known as Selwyns Vision (the project).
8. A contribution of $3 million is sought from Auckland Council towards the project, which hasa total value of $12 million, and includes the following elements and costs:
A new Bishop Selwyn Chapel (capacity of 120 people). The chapel
is designed for multiple uses with removable seating so that itcan host events such as art exhibitions, concert rehearsals,small weddings and funerals and as an anteroom to the largercathedral for major events.
$4 million
Removing the Cathedral bridge which divides the Chancel and Naveof the Cathedral, visually and functionally effectively bringing thetwo spaces together into one. This will increase the capacity ofthe cathedral up to 200 people
$1 million
Rebuilding and relocating the Cathedral organ. The 44-year oldorgan will receive a major overhaul and be shifted so that it canplay to the whole Cathedral. The rebuild of the organ willovercome the frequent breakdowns that are now occurringduring public performances.
$4 million
Linking the historic St Marys church building to the Cathedral viaa weather proof and accessible passageway. This will improvethe outside entranceway linkages between the two buildingsand improve access for disabled people. The courtyard andforecourt of St Marys will also be landscaped to improve thedriveway access to Parnell Road
$1 million
Restoration of the historic St Marys organ $0.5 million
Other project costs $0.5 million
Contingency $1 million
Total $12 million
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The use of the Cathedral precinct in todays world9. The Holy Trinity Cathedral precinct is a leading regional and national worship, civic,
community, music, cultural, drama and arts facility welcoming over 80,000 people eachyear.
10. It hosts events and services, which foster diversity and social cohesion in our communitiesand creativity in our children. Examples of the type of use are the:
annual New Zealand Police Remembrance Service,
KBB music festival1,
Organ Donors Service,
Auckland Philharmonic Orchestra (APO) and
Habitat for Humanity.
11. There are currently 65 different community user groups that hire the Cathedral. They do sobecause it is an affordable, accessible and centrally located option. A broader list of the
wide range of community users is included in Attachment 1 (pp 6-7).
12. The Cathedral is also a tourist attraction in addition to the 80,000 visitors per year theCathedral welcomes up to 2,000 national and international visitors per month. TheCathedral is a listed stop on the hop-on-hop-off bus route (see Attachment 2). It hasreceived wide attention in international travel promotional material and public acclaim as amusic venue as outlined in Attachment 3.
13. A breakdown of the Cathedral precinct usage can be seen in figure 1 below.
Figure1:WhypeoplevisittheCathedralTourists19%
CivicServices13%
CommunityMeetings
11%Arts&Music26%
Primary,Secondary,
TertiarySchools15%
Regularworship16%
1The KBB Music Festival showcases secondary school orchestras, concert bands and jazz bands in
Auckland. The festival celebrates 30 years in 2013, having started out as the Auckland Secondary SchoolsBand and Orchestra Festival. The Festival began with a few schools combining for performances and hassince grown in both size and stature. In 2012 there were 134 groups represented from more than 50 schoolsfrom the greater Auckland region.
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14. Many user groups require large and multiple spaces when hosting events. The widerCathedral precinct is now struggling to accommodate the needs of some these requests.An example of this is a state or public service such as Sir Edmund Hillarys funeral where avariety of groups need to be accommodated, including the family, dignitaries, media andsecurity all of whom have their own requirements for space.
15. Two other events where large capacity was required to host memorial services were:
After the recent tsunami tragedy in Samoa, where Prime Minister J ohn Key invited thefamilies of the New Zealand victims and the wider New Zealand Pacific community to
join him at the national memorial service held at the Cathedral, to remember the NewZealanders, Samoans, and Tongans who had lost their lives, and
After the Pike River mining disaster where the Mayor invited Aucklanders to join in aninter-denominational service of remembrance and condolence at the Cathedral toremember those who had lost their lives.
Other similar venues
16. The nearest facilities that offer similar capacity are the Town Hall in Auckland, the Aoteacentre and the Mount Smart Stadium in Penrose. While there is overall some capacity still
in Aotea Centre and Mt Smart at certain times of the year, the Cathedral is most often thechosen venue when the city needs to gather for:
State and public figure funerals the Cathedral currently functions as a venue fornational funerals including Bishop Sir Paul Reeves funeral, Sir Edmund Hillary and thefuneral of Sir Wilson Whineray.
Annual national services (the SPCA blessing of the Animals, the AnnualCommonwealth Day Service) and
One off national services such as the Christchurch Earthquake Memorial service in2011.
17. Additionally, many of the events require the acoustic quality that the Cathedral precinct
currently offers and the use of cathedral organs. The organs housed within the Cathedralprecinct (which includes St Marys church) are a part of the cultural and historical heritageof Auckland and should be considered in Councils historical heritage assessment.
18. The Town Hall is a venue where similar events are held. Bookings for the Town Hall andthe organ are very full and stretch several years into the future for many events such asuniversity graduation ceremonies and APO events. Officer discussions with bookings staffindicate that if the project were to go ahead, it would have no adverse effect on Town Hallbookings.
19. Schools have indicated that the Cathedral precinct is a family friendly place to get to andremain at over the course of week-long music festivals and competitions.
20. Monsignor Bernard Kiely of St Patricks Cathedral has written in support of the project andacknowledged the important part that Holy Trinity Cathedral plays in the life of Auckland.He notes that as the two Cathedrals of Auckland, they often work in partnership to host arange of events and services at Holy Trinity Cathedral (Attachment 4).
Al ignment w ith Counci ls prior it ies as expressed in the Auckland Plan
21. A precedent for supporting the capital works of regional places of worship has alreadyoccurred when Auckland City Council granted funding for the upgrade of St Matthews inthe City. A community access agreement was adopted as a mechanism to ensure that thecommunity continued to have access at reasonable rates of hire.
22. Auckland Council currently supports the endeavours of many churches throughout the
region, either with capital grants to church halls through the Facilities Partnership Fund orsuch things as rates rebates and community leases. In the case of the Cathedral, there isno separate church hall because essentially the whole precinct functions as a hall, with allof the spaces able to be hired the community.
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23. The Auckland Plan Implementation chapter emphasises the need for a partnershipapproach with key stakeholders and Aucklanders to build the worlds most liveable city.Much of the social infrastructure needed to support this vision rest in the hands of otherorganisations.
24. The draft Unitary Plan describes the importance of enabling the provision of good qualitysocial infrastructure in a growing city2. The definition of social infrastructure includesplaces of worship and notes that social infrastructure is often provided by organisationsother than Council. It lists three policies which are relevant to this proposal, those being to:
Provide Auckland with sufficient social infrastructure to meet the needs of its growingpopulation by:
a) enabling intensive use and development of existing and new social infrastructuresites,
b) working with providers to plan and fund social infrastructure to meet future growthneeds,
c) requiring adaptable multi-functional buildings to meet changing needs and providefor co-sharing and co-location (where this is supported by the provider).
25. The Holy Trinity Cathedral is an enduring partner in the development of Auckland with avision that is well aligned and likely to remain so. A partnership approach is advantageousbecause any capital expenditure that Council may contribute to social infrastructureprojects such as this one can be matched with the partner organisation contributing theresources to cover operational expenditure minimising any potential future operatingburden on the ratepayer.
The benefits of the project to Aucklanders
26. As a cultural institution, the Cathedral precinct plays a significant role in the cultural lives ofAucklanders. Civic services do not attract a user charge but are provided as a service toAuckland and this will continue into the future.
27. The increase in capacity of the Cathedral itself, the new Bishop Selwyn Chapel, theimproved disabled access and the restoration of the organs will continue and expand thecommunity use of the precinct for many generations to come.
28. An outline of hireage rates are included on page 5 of Attachment 1, including a separatepricing structure for community groups and schools. Commercial rates are charged forsome events. A committee meets annually to review these charges.
Financial Implications
29. The proposed financial approach to the grant is to spread the impact on ratepayersthrough borrowing and amortising the grant over a 30-year time frame. 30 years is inkeeping with the long life of the asset.
30. Technically, the grant would be an operational grant as there will be no asset on Councilsbalance sheet.
31. It is proposed that the funds be uplifted as follows: $1.5 million in the 2014-2015 year and$1.5 million in the 2015-2016 year.
32. The cost to ratepayers in the 2014-2015 year will be approximately $12,000 and will notexceed $270,000 in any one year.
33. The operating costs of the Cathedral precinct are currently met adequately by the
Cathedral community and will continue to be in the future.
2Draft Auckland Unitary Plan, Part 2: Regional Policy Statement section 2.2.7 Social Infrastructure
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Options
34. Options that were considered in writing this report are set out below.
Option Pro Con
Option A: Status quo -No$3million grant
Council agrees that the projecthas considerable merit but thatit has other priorities forfunding. A letter of supportcould be offered to support thecampaign. Council wouldconvey its decision to the ASBCommunity Trust and theLotteries Grant Boardsupporting the proposal.
No ratepayer funds required Risk that the Cathedralprecinct redevelopment doesnot go ahead or is re-scopedwith no additional communityspace. This could cause theneed for other communityfacilities to be developed in thefuture which may require aCouncil contribution.
Option B: Grant $3 milli on
A grant of $3 million is givento the project
A grant of $3 millioncontributes significantly to theproject fund - which providesassurance for other donors -thus increasing the likelihoodof the project proceeding asscoped on time.
Increased hireablecommunity space with noconsequential operatingexpenditure required to bemet by ratepayers.
Increase in hireable spacewith a discounted communityrate and improved access forthe disabled.
Auckland has a venue withimproved capability for statefunerals and memorials.
Ratepayer funds required forthe capital works associatedwith the project.
Consideration
Local Board Views
35. The parishioners of the Holy Trinity Cathedral are mainly from the Waitemata and OrakeiLocal Board areas and the project has received strong letters of support from both of theseboards. Both have noted that not only does the Cathedral serve the needs of localcommunities but also acts a regionally and nationally significant venue to host otherevents. The boards also note many in the area interact with the Cathedral secularly,including volunteering their time to assist the many national and international visitors who
come daily. The project aligns well with these two Local Board priorities. Waitemata LocalBoard has submitted that this project is a high priority.
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Maori Impact Statement
36. Cathedrals gain their name from being the location of the cathedra or seat of the Bishop ofthe region. Holy Trinity Cathedral is the home of three cathedra, one of which is the seat ofBishop of Tikanga Maori (Hui Amorangi Te Pihopatanga O Te Tai Tokerau extending fromBombay Hills to the North Cape).
37. The Selwyns Vision project committee is consulting with Bishop Te Kitohi Pikaahu (Te Tai
Tokerau) to ensure that there is Tikanga Maori input and appropriate protocol is followed.
General
38. The Project Governance Committee has also submitted funding applications to the LotteriesGrants Board and the Auckland Savings Bank Community Trust, totalling 2.25 million. Ingeneral, where one large funder (such as Council) commits strongly to a project, otherfunding entities are more likely to consider project applications favourably since thelikelihood of the project being fully funded are significantly increased. A funding commitmentfrom Council sends a strong message to other funding entities that the project is consideredto have demonstrable community benefit.
39. The Project Governance Committee has already overseen the raising of over $5 million todate. The balance of 1.75 million is considered to be achievable through fundingapplications to other statutory and private trusts and the donations of individuals andbusinesses in the wider Auckland community.
Implementation Issues40. The Diocese gave its formal support to the project in September 2012 on several conditions
including that:
Money must not come from the gaming industry, but can come from lotteries.
All funds must be pledged before commencing any building works
41. Information that has been provided to Council shows that the project governance andfinancial oversight of the project are sound and well resourced. The project team has theskills to ensure that the project will be completed in a timely and efficient manner once thefundraising has been completed.
42. The project enjoys the support of many businesses, many who have donated theirconsultancy services including project management and quantity surveying.
43. Resource consent has now been approved and building consent discussions are now wellunderway.
44. The construction and renovation phase are due to begin in 2014 and be completed by 2015.
AttachmentsNo. Title Page
A Attachment 1: "Selwyn's Vision - Let's Finish What History Started" 15
B Attachment 2: Hop on, Hop off bus tour brochure 43
C Attachment 3: Public Reviews of Holy Trinity Cathedral 45
D Attachment 4: Letter of support from Monsignor Kiely 49
Signatories
Authors Rose Leonard - Principal Advisor
Authorisers J aine Lovell-Gadd - Manager CCO Governance and External Partnerships
Andrew McKenzie - Chief Finance Officer
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