The revised $64 million Oruku conference and event centre on Whangārei's Town Basin. Photo: Supplied / Northern Advocate
Whangārei District Council has once again stepped into the Oruku conference and event centre ring with a decision to put as much as $11.4 million towards the new version of the facility on the edge of the Town Basin.
Its decision came after a two hour-plus debate at the March council meeting on Thursday where councillors voted to boost the council's financial input into the reincarnated $64 million Oruku conference and event centre.
The council was to put $57 million into the initial shelved centre which was to originally be jointly funded with $60 million from the government, $6 million from Northland Regional Council (NRC) and the at least $57 million from WDC. The WDC was also to be underwriting any construction cost overruns.
Mayor Vince Cocurullo said this week's decision was about a totally different Oruku conference and event centre risk for ratepayers from the earlier shelved proposal. WDC voted against Oruku funding in November 2021 after negative reaction from more than 80 per cent of the 5000 submittors on the proposal.
Whangārei Mayor Vince Cocurullo Photo: LDR / Northern Advocate, Michael Cunningham
Cocurullo said it was now up to the government to honour its funding promise for the conference and event centre. The government initially proposed $60 million towards the facility. That offer had been extended several times, due to centre developer and community trust Prosper Northland Trust (PNT) working closely with the government, he said.
Then Deputy Prime Minister Grant Robertson wrote to the council in November 2022, just after the October local government elections, saying there would be one final last extension to its project funding availability offer, due to the new council coming on board.
This last extension is available only until the end of March.
Cocurullo, now in his new mayoral role at the council helm for five months, has been a strong supporter of the Oruku development. He was among those pushing for its reintroduction to the council table last year while still a councillor.
The one-person 7-6 majority vote in favour of the revised centre funding saw Mayor Cocurullo, Deputy Mayor Phil Halse and councillors Gavin Benney, Ken Couper, Deb Harding, Scott McKenzie and Carol Peters in favour of new funding. Meanwhile councillors Nicholas Connop, Jayne Golightly, Patrick Homes, Marie Olsen, Simon Reid and Paul Yovich were in opposition.
Whangārei Deputy Mayor Phil Halse speaks in favour of Oruku conference and event centre. Photo: LDR / Susan Botting
Councillor Phoenix Ruka abstained. He earlier told the meeting he was concerned about going ahead in light of a proposed 10.9 per cent 2023/2024 rates rise.
Cocurullo said the earmarked fitout, operating and marketing funds would not be coming out of the coming year's 2023/2024 budget.
Couper said the revised Oruku centre was almost totally unlike its shelved predecessor to which ratepayers objected. Its name and the fact it was to be a conference and event centre was about all that the two options had in common. The risk to ratepayers had been hugely reduced. One key aspect of this was that PNT rather than WDC would be building it and underwriting any cost overruns.
Peters said the revised centre would be more than a 1000-person conference facility. It was also for the community with weddings and family functions also possible on the site.
The new centre will now have a bar and café. It will no longer include a theatre.
Scott McKenzie said he was satisfied the revised centre would be located well above NRC-mapped 100-year flood hazard zones.
WDC council controlled organisation (CCO) Northland Events Centre Trust (NECT) will now be running the facility, rather than the council. It will lease the centre from PNT. WDC yesterday decided on allocating up to $650,000 annually to the CCO for the centre's first five years - if the council decides that is necessary. This annual figure equates to $3.25 million over that time.
The council has also decided NECT will get $5 million for centre fitout and equipment plus up to $50,000 annually for three years, also if the council considers that necessary.
These extra funding decisions are on top of council's July 2022 decision to put $3 million towards upgrading Riverside Drive wastewater and roading infrastructure, upgrades needed around the lower Town Basin site for the Oruku development.
The new centre comes with a new land owner. Marsden Maritime Holdings will own the land on which the conference and event centre is built, rather than WDC. NRC has a 53.6 per cent Marsden Maritime Holdings shareholding.
Oruku plans have been promoted for six years to date. Photo: Supplied / Northern Advocated / Michael Cunningham
The 1000-person centre is a key part of the Northland Development Corporation's wider multimillion dollar Oruku Landing Development on the same site, also earmarked to involve a hotel and apartments.
A marina and electric ferry between Oruku and Marsden Point linking with cruise ships is still part of the new picture. Oruku is seen as a catalyst for a float plane service between Marsden Point and Auckland, also in the wings.
Prosper Northland Trust (PNT) chair Andrew Garratt welcomed the new council funding move.
"The council's decision is a significant step forward," Garratt said.
"We will now be taking stock of (Thursday's) decision and doing further work on our plan of action towards being potentially able to start work on the centre," Garratt said.
"And we look forward to working further with the government around its potential centre funding too," he said.
Garratt said it was too early to confirm the Oruku conference and event centre would definitely be going ahead.
"There is still water to go under the bridge, but if everything works out, we would like to think early geotechnical work on the site would start by July," Garratt said.
Cocurullo said it was now up to the government to make its choice on the $59 million funding in the wake of WDC's final decision on Thursday (SUBS: 23 March)
Major work on various lease agreements between PNT, NECT and Marsden Maritime Holdings now also have to be sorted out.
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