23 Jan 2017

Council forks out millions for carpark owned by high-flyer

9:52 pm on 23 January 2017

The Christchurch City Council has contributed $28 million towards a carpark owned by a major property developer.

The Crossing carpark building in Christchurch.

The Crossing carpark building in Christchurch. Photo: Supplied

The figures are contained in a release of official information to RNZ and focus on Philip Carter's $140m retail complex, The Crossing.

The payment has been revealed at the same time as the city considers asset sales and rates' rises to help balance its budget.

The cash contribution was agreed to in 2014 but details have been kept secret until now.

The council said it was obligated, because of a pre-earthquake agreement, to provide 220 carparks on the site.

The new agreement sees the council meeting half the cost of constructing the new carpark, and the number of spaces more than doubling to 534.

An image of the planned retail development in Christchurch, The Crossing.

An image of The Crossing retail development. Photo: Supplied

Mr Carter's company has a legal commitment to the council to maintain and operate a carpark in the building for 50 years.

A council statement said the deal helped drive the development of the so-called retail precinct and provided certainty to private sector investors.

A statement from the Carter Group said it gave investors the confidence to return to the central city and helped the council meet its binding obligations to the Carter Group.