Report to Auckland Council Property Limited (ACPL) Town Centres and Transformation Projects Overview Report

Cranleigh | Tattico |Sequoia | Colliers

4 November 2011

TABLE OF CONTENTS

1. 2.

EXECUTIVE SUMMARY AND KEY RECOMMENDATIONS .......................................... 1 ACPL PROJECT ADVISORY TEAM BRIEF ................................................................... 4 2.1 Special Notes to this Report .................................................................................. 4

3. 4.

APPROACH AND METHODOLOGY .......................................................................... 5 THE IMPORTANCE OF TOWN CENTRES AND TRANSFORMATION PROJECTS ............. 6 4.1 The Importance of Town Centres .......................................................................... 6 4.2 The Importance of Transformation Projects ......................................................... 7

5.

KEY MARKET MESSAGES ....................................................................................... 8 5.1 Less is More ........................................................................................................... 8 5.2 Council Cannot Make the Market ...................................................................... 8 5.3 People Behave and Act Communally .................................................................... 8

6.

COMMERCIAL DEVELOPMENT CRITERIA .............................................................. 10 6.1 Critical Success Factors, as Identified by Mercer Delta Consulting ..................... 10 6.2 Additional Criteria ............................................................................................... 11

7. 8.

COUNCILS INVESTMENT IN TRANSFORMATION PROJECTS AND TOWN CENTRES .. 11 TOWN CENTRES .................................................................................................. 12 8.1 8.2 8.3 8.4 8.5 8.6 The Hierarchy of Town Centres ........................................................................... 12 City Centre ........................................................................................................... 13 Primary Centres ................................................................................................... 13 Metropolitan Centres .......................................................................................... 14 Mega Centres/Malls ............................................................................................ 18 Provincial & Local Centres ................................................................................... 19

9.

TRANSFORMATION PROJECTS ............................................................................. 19 9.1 Greenfield Transformation .................................................................................. 19 9.2 Brownfield Regeneration .................................................................................... 21 9.3 Community Renewal ........................................................................................... 21

10. THE IMMEDIATE PRIORITIES FOR COUNCIL INVESTMENT ..................................... 21 11. ROLE OF COUNCIL ............................................................................................... 24 11.1 Business as Usual with Excellence ....................................................................... 24 11.2 Transformation Projects ...................................................................................... 24 12. ROLE OF ACPL ..................................................................................................... 25 Appendix I: ................................................................................................................ 27

1.

EXECUTIVE SUMMARY AND KEY RECOMMENDATIONS

The project team was required to provide a commercial and business perspective on the selection of Aucklands Transformation Projects and the critical Town Centres, as outlined in the Auckland Unleashed discussion document. This report has considered a variety of factors in the evaluation of specific issues around Town Centre and Transformation Project investment. These have included the following: Evaluation of a commercial development criteria; The hierarchy of Town Centres and the appropriateness of this approach; A hierarchical and intervention/timeframe based investment strategy; and Particular details relevant to each Town Centre/Project.

The Project Advisory Teams focus and brief was on Town Centres and Transformation Projects. As a result, it should be noted that the following has been excluded from evaluation in this report: The City Centre. The Project Team has previously addressed this issue in its report entitled City Centre Master Plan Overview Report to ACPL, dated 15 July 2011. The Airport/Wiri region. It is not seen by the Council as a Town Centre or a Transformation Project. However, there is a need for Council to recognise the Airport/Wiri region as a significant area for Aucklands future regional economic development. Specific discussion on Aucklands Growth Corridors and Development Areas. Whilst the Project Team has not addressed these areas in detail, we note that these areas warrant a careful, commercial focus as part of the planning and development of Aucklands growth in and around these corridors and areas. Specifically, over the next 20+ years, the Auckland-Hamilton corridor will provide a strong opportunity to harness economic growth in the north of the Waikato and the south of the Auckland regions. It is suggested then, that this growth corridor and the Provincial Towns located in this corridor are a critical element of Aucklands growth strategy. This corridor should be formally recognised in the Auckland Plan.

Importance of Town Centres & Transformation Projects The success of the Town Centres and Transformation Projects is fundamental to the long term success of the Auckland Region. It will be essential to invest the Council's limited resources into areas that will stimulate growth and result in outcomes that provide the most benefit. To this end, the report sets out the Project Team's recommendations that will facilitate such outcomes. Investment in Town Centres and Transformation Projects must be able to demonstrate that, after initial Council investment, the market will be attracted to such areas and deliver the longer term vision for each area and/or project. This will require rigorous analysis and justification prior to any investment decisions being made. Auckland's multi cultural society reflects its economic and environmental structure. Town Centres are important locations for social connection. Investment into such areas must be cognisant of the underlying social attributes of a locality

in order for it to be successful from an economic perspective and to enable it to contribute positively to the region. Key Recommendations In considering the variety of factors affecting Town Centres and Transformation Projects, we set out below our key recommendations for Town Centre and Transformation Project development and investment: There needs to be a prioritisation on the core Town Centres that Council wishes to focus on, evaluated on critical success factors and commercial development criteria (these are detailed further in this report). A tight area of focus combined with significant investment will result in the market supporting Council and investing in such Town Centres. Development and investment should be based on what is needed at the present time, as opposed to a 'build it and they will come' approach. The prioritisation of Town Centres is important. However, the debate on the hierarchy of Town Centres should not distort the drive for the right results. The focus should be on deriving outcomes rather than settling hierarchical arguments. From the markets perspective, it will focus on opportunities where there are clear signals from Council as to where investment is targeted. The proposed hierarchy provided in the Draft Auckland Plan is supported, with the inclusion of two new categories; Primary Centres, after the City Centre, and Mega Centres/Malls, after Metropolitan Centres. Manukau and Albany should be recognised as Primary Centres within the region owing to their importance within the Region. These Primary Centres fundamentally complement the City Centre in servicing core parts of the region, and reflect the linear geography of Auckland. The status of Metropolitan Centre is considered appropriate for Newmarket, Takapuna, New Lynn/Avondale and Papakura. It is noted that Avondale needs to be considered alongside New Lynn in this categorisation. Other centres such as Henderson and Orewa are more appropriately considered as Town Centres. With particular regard to Orewa, it is considered that Silverdale is the more appropriate location for a potential Metropolitan Centre in that area. With regard to Sylvia Park, Westgate and St Lukes, it is considered that these areas are primarily retail and entertainment centres and should fall into a separate Mega Centre/Mall category. Such areas are yet to evolve the breadth of social and community services inherent in Metropolitan Centres. With regard to Transformation Projects, it is considered appropriate to separate such projects into Greenfield and Brownfield projects, as each has different characteristics and driving forces. For Greenfield Transformation Projects, Flatbush, NorSGA and Silverdale are important, strongly supported and warrant on going investment, subject to confirmation of tangible net economic benefits and agreed investment priorities across the region. For Brownfield Transformation Projects, the City Centre/Waterfront, New Lynn/Avondale, Tamaki and Mangere Inlet North are important, strongly

supported and warrant on going investment, subject to confirmation of tangible net economic benefits and agreed investment priorities across the region. The Southern Initiative Area is supported and is generally considered to be a situation where a complex multi agency approach is required, led by Central Government. Any material Council investment should be made in this context. Each Transformation Area has its own particular issues (as outlined in this report), however, they also have the opportunity to contribute significantly to the future growth and development of the Auckland Region. They also have the opportunity to provide important residential and employment opportunities. Such outcomes need to be maximised within these projects. It is recommended that the growth corridors should be aligned to the major infrastructure and transport routes in order to maximise efficiencies. In terms of the seven Priority Growth Areas outlined in the draft Auckland Plan provided to the Project Team (these being the City Centre/Waterfront, Hobsonville, New Lynn/Avondale, Onehunga Area, Tamaki, Takapuna and Warkworth and/or Pukekohe), these are all supported with the exception of Warkworth. It is considered that Pukekohe presents more of an opportunity than Warkworth.

For a high level summary of the Project Teams proposed impact that each of the centres/projects assessed in this report could have on the Region's economy and the level of Council investment required for this to occur, refer Appendix 1. Role of Council The role of Council in Town Centres and Transformation Projects can generally be described as either "Business as Usual with Excellence" or as "Transformational". The first approach is generally appropriate in Centres that are mainly market driven and Council's focus in these areas should be on developing a strong vision and undertaking its every day role to a high standard. The second approach will mainly be Council driven at the outset. Investment in such projects will require robust business cases and a strong/outcome vision which is tailored to the particular project. Role of ACPL ACPL will play a critical role in reinforcing and delivering the Councils vision and programme with particular regard to leveraging off its land holdings. It will also coordinate private sector, CCO and stakeholder involvement and lead opportunities where it can utilise its holdings to influence outcomes that meet Councils vision and objectives.

2.

ACPL PROJECT ADVISORY TEAM BRIEF

The project team was required to provide: A commercial and business perspective on the selection of Aucklands Transformation Projects and the critical Town Centres, as outlined in the Auckland Unleashed discussion document. A succinct, high-level overview of the Town Centres and Transformation Projects focusing on market trends, key strategic issues, opportunities, concerns, strengths and gaps in relation to the Auckland region. It should be noted that the Airport/Wiri area has been omitted from mention in this report as it is not seen by the Council as a Town Centre or a Transformation Project. However, there is a need for Council to recognise the Airport/Wiri area as a significant centre for Aucklands future regional economic development. We have addressed this issue in previous reports to ACPL.

2.1

Special Notes to this Report

2.1.1

Growth Corridors and Development Areas A critical element of managing Aucklands growth will be development within the identified growth corridors as provided in the Auckland Unleashed document, and the supporting physical and community infrastructure investment which is targeted for these corridors. Transport is likely to be the biggest driver of this redevelopment, but other infrastructure remains critical. The brief of the Project Team for this report was to focus on Town Centres and Transformation Projects. Consequently, the issues of the growth corridors and development areas in the Auckland Region are not addressed in this report. Notwithstanding this, they warrant careful consideration as part of the planning and development of Aucklands growth in and around these corridors and areas. These development areas mainly set out areas for residential and employment development. It is considered appropriate that the development areas are aligned closely with the growth corridors in order to ensure the most efficient outcomes for regional growth are achieved. Auckland Hamilton Growth Corridor Over the next 20+ years, the corridor that links Auckland and Hamilton will provide a strong opportunity to harness economic growth in the north of the Waikato and the south of Auckland regions. As a continuation of Section 2.1.1, it is suggested that this growth corridor and the Provincial Towns located in this corridor are a critical element of Aucklands growth strategy. This corridor should be strongly and formally recognised in the Auckland Plan. It provides the basis for a future conurbation encompassing South Auckland and North Waikato regions. Aucklands economic and population growth must have an interest in, and relationship with, the Waikato and its primary agriculture base as it is so essential to the New Zealand economy. Auckland needs to recognise the

2.1.2

opportunity that Aucklands proximity to the Waikato, as the engine room of New Zealands leading industry of international scale and quality (i.e., dairy, agriculture and biotechnology), will provide in the future. There is significant opportunity for Auckland in the economic involvement, support and servicing of this industry. Auckland will benefit from this (as will the Waikato) in economic returns as much as in the opportunity that such a corridor presents to accommodate future growth in the South Auckland/Northern Waikato "super region". The significant existing investment in rail, road and broadband infrastructure between Auckland and Hamilton also offers significant opportunity for Provincial Centre development along this major transport corridor. Further investment in this corridor may yield large gains for Auckland and relieve pressures elsewhere within the system. The relative merits of leveraging this infrastructure against alternate transport and economic investment is at least worthy of consideration in the next 2-5 years. There is a significant opportunity to provide both residential and business land and to accommodate a material number of businesses and residents over the next 20-30 years. Pokeno and areas south of Bombay are considered to be attractive to the market and the southern growth corridor should consider carefully the impact and importance of such areas. With the main New Zealand market and economy located in Auckland and to the south, vacant land supply south and the connections to primary transport, make the Auckland-Hamilton corridor a critical factor that warrants recognition and close consideration in the future.

3.

APPROACH AND METHODOLOGY

The Project Teams approach has entailed the following: An evaluation of Aucklands Transformation Projects and Town Centres by reference to: - Market trends. - Obtaining a commercial perspective from key business leaders through one-on-one and group discussions1.This was complemented by targeted discussions with key developers of Town Centres. - Review of key studies of likely future trends in the Auckland region. - Consultant team analysis and evaluation. - Testing ideas with the reference group/consultants appointed by ACPL. Analysis and synthesis of the various elements into this report.

The approach set out in this report is to: Test the rationale for making a significant investment in Town Centres and Transformation Projects. Outline the market perspective with respect to Town Centres and

Conducted through the stakeholder engagement process, highlighted in the Auckland Unleashed Overview Report to ACPL dated 5 August 2011.

Transformation Projects. Review the hierarchy of Town Centres set out in the Auckland Unleashed discussion document, both in terms of the approach and the Town Centres themselves. Review and comment on the critical Town Centres that should be focused on in the next 3 - 5 years. The analysis of these Centres draws a distinction between those that will need significant intervention from the Council, compared to others where the market will respond provided the Council delivers its core functions with excellence.

4.

THE IMPORTANCE OF TOWN CENTRES AND TRANSFORMATION PROJECTS

Town Centre and Transformation Projects require a new way of thinking and doing. In some instances, councils have previously relied only on land use based planning and an urban design outcomes approach to achieve Town Centre rejuvenation. While doing these elements well is essential, it is only part of the solution. To be successful Council needs to implement a strategy which recognises the multi-layered complexity and the need for a comprehensive and integrated solution. As part of this process, it is fundamental that Council understands and considers the implications of development on the nature, character and role of a place. Issues such as market trends and commercial viability also need to be taken into account. This will require a multi-agency, partnership approach through an integrated and imaginative response to a places inherent strengths and opportunities. Development of thoughtful and complex projects, founded in the context of a place and responding to its strengths, weaknesses, threats and opportunities will be a necessary precursor to success. This will allow for the development and evolution of a plan unique to the context of that place and its inherent character. There is a need to prioritise Town Centres, by reference to key criteria. It is better to invest significantly in a smaller number of centres than dissipate energy over a number of Town Centres.

4.1

The Importance of Town Centres

This study has confirmed the critical role Town Centres play in the Auckland Region. The Council is correct in placing particular focus on Town Centres. They reflect a huge investment by the community, and are one which needs to be carefully leveraged. Town Centres drive: - The image of the Auckland region and the different parts of the City. Successful Town Centres drive a successful perception of Auckland. - Economic success. They bring together a range of intensive economic activity and are a critical part of the Auckland economy. - The heart and soul of the community. Town Centres are the single largest physical demonstration of a gathering place within communities. Successful Town Centres reflect the image, culture and wellbeing of the

communities they serve. They provide the breadth of services from retail, food and beverage, public community services (e.g., libraries and community centres), private community services (e.g., medical facilities and banks) and other community infrastructure. Town Centres also reflect the social structure of the various parts of the region and are important places for social connection. - Tourism. Town Centres are, or they can be, significant destinations. They are an attractor of people from the communities they serve, but also from other Aucklanders and visitors to the area. The Plans growth strategy relies on intensification around and within many of Aucklands Town Centres. For this to be successful the following is required: - The right Centres need to be targeted for growth. Such Town Centres, and their surrounding suburban areas, should be ones which can accommodate and respond to these opportunities, without compromising the ability to service such growth. - The preservation of the soul of a Town Centre is crucial. Auckland needs to reinforce and leverage off its distinctive character. - Identified growth centres and the accompanying framework for development must reflect market opportunity. Growth relies on the market delivering accommodation and employment. Targeting the right centres and enabling growth of those centres in a way the market will respond to is crucial. - The transport corridors that link Town Centres together are also important growth areas as they already have important infrastructure benefits. Town Centres can be distinguished from Transformation Projects in that Town Centres, if set up with the right framework and given the appropriate Council enablers (e.g., regulatory regimes and public infrastructure), will attract market driven growth and development. Consequently, this will deliver on the Councils aspiration.

4.2

The Importance of Transformation Projects

Transformation Projects need Council intervention due to a lack of market response and/or attraction to these areas. They are typically characterised by a high level of complexity and often with high levels of multiple deprivation. As a result, these areas require a different approach. Council has the ability through a variety of mechanisms (including land purchase, capital projects and catalytic developments) to stimulate the market and demonstrate that transformation is possible and that growth and renewal of a Town Centre, region or place can occur. Council will need to develop new ways of working with multiple stakeholders and, in particular, Central Government agencies (including the Ministry of Social Development) most involved with the provision of social infrastructure and services including health, education and policing. Other critical stakeholders should be involved early in the process. These include, but are not limited to utility providers, transport bodies and local strategic

partnerships with business, the community and the voluntary sector. A Transformation Project must be a game changer. It must result in a demonstrable turnaround in market perception. It must generate a paradigm shift in the economic and social value of a region, Town Centre or place. In this way, Councils initial actions need to stimulate a transformation process which the market will pick up and deliver on. The reality is that the Council cannot afford to perform all of the necessary transformational change (i.e., for every one dollar of public spend it will need to attract multiple dollars of private sector investment). If the Councils initial actions do not result in this paradigm shift in the market, then it is questionable whether the investment is a priority.

5. 5.1

KEY MARKET MESSAGES Less is More

There is a significant risk of the Council spreading its resources too thinly and, as a result, not achieving its growth objectives. There needs to be a prioritisation of the core Town Centres that the Council wishes to focus on. A tight focus and a significant investment will result in the market supporting the Council and investing in these Town Centres. When the market responds, the Council can move on to the next Centre(s) of priority. Sound economic modelling and demand forecasting must be a critical part of the Councils decision making process.

5.2

Council Cannot Make the Market

In the current property environment, development and investment should be concentrated on what is needed, not a build and they will come philosophy. This may mean that some Town Centres will not warrant investment at this time. Council needs to realise that the prioritisation process will pick winners and by implication losers. There is, and will always be, a need for Centres who have lost their primary function to reinvent themselves (e.g., Ponsonby and Devonport).

5.3

People Behave and Act Communally

On-line shopping, social and business transactions will have an increasing impact on Town Centres. Already over 5% of retail sales occur on-line in New Zealand and this is forecast to grow to 12% by 20152. Businesses will need to respond to the opportunities and threats raised by this approach. Centres will need to respond to and evolve otherwise the retail function, which is such a critical element of Town Centres, will be diluted. A number of broad economic factors, including a carbon-constrained community and the digital age, give significant opportunity for people to

PWC, Statistics New Zealand

work and live independently undertaking many business transactions from home. However, the underlying communal and tribal nature of people will always mean a critical role for Town Centres. We tend to live in the same or similar areas; we want to meet together for work and social contact; and we want to be part of a community. While the nature of the way we do business and the economic arrangements within Town Centres will undoubtedly change over time, the role of the Centre as a focus for the community will remain. Council needs to review its expectations of where and when growth will occur. These need to be considered within the framework of a specific business case aligned with regional economic priorities and timeframes for infrastructure investment. It is necessary for Council to have an understanding of the historical net absorption by different property types in the relevant Town Centres. This will ensure that Council does not estimate and facilitate more demand than actually exists. Vacancy surveys can underestimate the amount of space actually available, as they omit from their calculations owned or leased property which owners or tenants are trying to dispose of as being surplus to their needs. Auckland needs to be a more compact, efficient, intensified city, to minimise urban sprawl. Intensifying Town Centres is a fundamental part of this growth strategy. Complementing this will be intensification in the suburban areas that surround the Town Centres. Getting this right in terms of the pitch to the market and the planning framework are fundamental success factors for Aucklands growth. The level of Aucklands growth cannot be accommodated within the existing Town Centres and their immediate catchments. We advocate strongly for quality investment in Town Centres, with them playing a fundamental part in Aucklands development equation and growth management. However, it is recognised this is only part of the solution. The Council needs to achieve a balance between simply taking the existing Centres and extrapolating them into the future, versus a fundamental look at the long-term future growth of Auckland. Extrapolating Centres out will simply reinforce the status quo. In most cases, Council should build on existing infrastructure for the reasons outlined above, including their role as the heart and soul of established communities, and the community investment in the Centres. However, there will remain a strong case for the creation of some new centres which will significantly service new growth areas. Examples historically have included Manukau City Centre and, more recently, Albany and Sylvia Park. Auckland Unleashed drives significant growth reliant on a revamped public transport network. Aligning the rail station network, including provision of substantial park and ride facilities, to Town Centres is a crucial element for the relevant parts of the network. The historical disconnect between planning and public transport decisions needs to be redressed. The seamless integration between growth and transport policies is essential.

6. 6.1

COMMERCIAL DEVELOPMENT CRITERIA Critical Success Factors, as Identified by Mercer Delta Consulting3
The following success factors relate primarily to the governance arrangements necessary for regeneration and revitalisation projects. While not all these success factors may apply fully in the New Zealand context (at least as a prerequisite for successful regeneration projects), nevertheless the list below provides a robust and valid assessment of international best practice: Coordination among public sector stakeholders. This issue was the fundamental driver behind the reform of local government in Auckland. The single super city authority with its CCOs brings this coordination to Auckland for the first time. The issue will be for the size and complexity of the organisation to continue to leverage the advantages of a single coordinated approach. For larger Transformation Projects this may also require better integration and collaboration with Central Government agencies. A viable funding model. Stable and multi-year funding together with the utilisation of new and innovative financial tools. Control over land. Assembling parcels of land and leveraging the opportunities from land ownership is a fundamental driver of regeneration projects. Control can be obtained both by direct ownership and indirect control including master plans and regulatory mechanisms. Comprehensive development plan. This sets out a logical progression of key components. Long-term planning horizon. Most successes are a result of years, if not decades, of effort. Visible champion and strong leadership. The ability to mobilise support, articulate a long term vision and build support across a myriad of stakeholders. Accountability mechanisms. Business practices, vision alignment and governance model. Authority to act. A governance model that balances a desire for independent operations with accountability for results and processes. Alignment between City and State (Central Government), and between the City and Independent Corporations. There are a number of examples where successful partnerships have brought significant advancement in both Greenfield and Brownfield regeneration. Flat Bush, New Lynn and Britomart are good examples of this. Mechanism to harness/regulate private ownership interests. Private sector investments are needed to support and deliver the vision for change. Public sector needs to make an effort to improve the conditions for private investment. Time-bound intervention. There is no doubt that a sense of urgency is a key

Mercer Delta Consulting undertook report a for the Toronto Waterfront Revitalisation Corporation, which identified twelve critical success factors necessary for a successful regeneration project.

10

catalyst for driving change. Without these perceived or real milestones, there is a danger of significant slippage. The Waterfront redevelopment for the catalyst of the Americas Cup and Rugby World Cup are good examples. Desire for change. Agreement that the status quo is unacceptable, the push-pull of change. The push to address a serious issue, the pull of a preferred outcome.

6.2

Additional Criteria
In addition to the relevant criteria above, the following are considered to be critical factors to weigh and determine the prioritisation of investment in Town Centres and Transformation Areas. Accessibility/proximity to key infrastructure which have capacity for further growth. This includes amenities, transport corridors and services such as health, education, and security. Accessibility/proximity to higher value well developed areas. The reality is these areas reflect high discretionary spend opportunity. If Council offers excellence in its normal business practises, then the market is enabled to respond, and, in many cases, thrive. Accessibility/proximity to existing significant market investment. Accessibility/proximity to established economic growth. Deprivation indices. Centres in areas of high deprivation are typically constrained or under pressure. High deprivation areas tend to maintain a downwards spiral with ever worsening economic and social implications. This has a huge cost to the community. Such areas need a transformational approach. They will either be economically sustainable, which will reverse the trends and strengthen centres with a market response or may need to continue to be supported for social reasons, which is an equally legitimate response by the Council. The deprivation index should not be the only factor considered when prioritising Town Centres investment - it should be one of the tools balanced with outcomes that might arise from investment/development opportunities. A small number of large, significant land owners. The availability of affordable land. Proximity to employment and major public transport and the walkability of the centre.

7.

COUNCILS INVESTMENT IN TRANSFORMATION PROJECTS AND TOWN CENTRES

There are four categories of investment Council will make in Town Centres and Transformation Areas: 1. Centres for Significant Investment These are large, complex projects requiring significant investment but with very substantial value creation over the longer term. The market will be attracted to these areas after initial Council investment and/or partnership opportunities.

11

These are areas where Council picks winners. They are Transformation Areas where there will be a focused, committed investment. They are also areas where the market will respond to Council prioritisation.

2. Business as Usual, with Excellence These are areas where a small amount of upfront investment, with good planning and execution, will create substantial, economic and social value. In these instances, the Council needs to play an enabling role. It is about delivering the normal services but to a very high standard. These business as usual services include planning and regulatory regimes, through to master planning and capital works and services. The Council can be an enhancer of development or an inhibitor of development through its normal business. In previous reports to ACPL on the City Centre Master Plan and on the Auckland Unleashed discussion document, we have identified the toolbox of measures which, if adopted, will significantly assist Council to become an enabler of quality development.

3. Centres that will need to reinvent themselves There will be a range of Centres which need to fundamentally reinvent or reposition themselves if they are to be successful. There are a large number of examples where this has been done. These reinventions are typically underpinned by a collaborative working relationship between Council and the business sector. Ponsonby and Balmoral are examples of where this has occurred.

4. Centres to be left to the market only The reality may be that a few Centres will struggle to have a legitimate and credible function as a Town Centre. These can become local employment and service nodes that serve small local communities. It is important that any decline is managed in a way that a transition to new activities can be easily achieved without significant regulatory hurdles. This will avoid streets with empty shops.

8. 8.1

TOWN CENTRES The Hierarchy of Town Centres

The conclusion of this report is that a form of hierarchy is beneficial. However, it is important that the debate on the hierarchy of Town Centres does not distort the drive for the right results. The focus needs to be on driving outcomes rather than settling hierarchical arguments. It does help set public sector prioritisation and funding decisions. It sets clear expectations for the market, which, in turn, will provide a level of confidence. The critical aspect, however, is not to constrain the market because beneficial initiatives dont fit in with a preconceived hierarchy. From the markets perspective, it will focus on opportunities where there are clear signals from Council as to where investment is targeted.

12

Figure 1 below outlines a proposed hierarchy of Town Centres.

City Centre Primary Centres*

Primary commercial, employment and cultural hub at a regional scale. Important retail, employment and residential function at a sub regional scale. Retail and social function at a local community level. Significant infrastructure spend on transport assets and opportunity for growth. Satellite town centres and rural fringe area.

Metropolitan Centres
Town Centres Growth Corridors & Development Areas*

Local & Provincial Centres

* This is a new Town Centre Hierarchy category introduced by the Project Team and not recognised in the Draft Auckland Plan
Figure 1 - Proposed Hierarchy of Town Centres

NB: Mega Centres have not been included in this hierarchy It is important to note that the hierarchy for Town Centres is expressed in terms of function only (i.e., the difference between Metropolitan Centres and Town Centres), and should not be confused with the investment priority for the Council. There are different drivers as to whether the Council could and should invest its resources in various Town Centres.

8.2

City Centre
The City Centre has been comprehensively covered previously by the Project Team. For further information on the City Centre, please refer to the City Centre Master Plan Overview Report to ACPL, dated 15 July 2011.

8.3

Primary Centres
While there is some debate about whether Auckland legitimately has two or three Primary Centres, the conclusion of this report is that there are two centres one to the South (Manukau) and one to the North (Albany). These Primary Centres fundamentally complement the City Centre in servicing core parts of the region, and reflect the linear geography of Auckland. Manukau Manukau has traditionally been a strong area and has developed into a major Primary Centre extensively servicing South Auckland.

8.3.1

13

It would benefit from the overview of the City Transformation Unit. The commitment and focus this brings is beneficial. It sends a signal to the market that Council is committed to continuing investment in order to strengthen Manukau. The key issues Council should focus on are: The significant opportunity the new rail link to Manukau City Centre will provide. This should further boost the preference for office location in this area. Opportunities to improve the walkability of the Centre, and in particular to connect the rail station to the Centre. A more sophisticated entertainment and retail offer. The need to promote a residential base within Manukau City Centre. It is this mix of office and residential use which will give Manukau a 24hour urban lifestyle. It is recognised that the reverse sensitivity aspects of the airport flight path do complicate residential opportunities. Support the social policy initiatives and approach reflected in the broader Manukau Community and the opportunities the Manukau City Centre derives to support these policies. Albany Albany is a centre with good bones but with little soul. It needs a more sophisticated approach to create a heart for the Centre. Albany needs a robust, strategic rethink. It is in danger of becoming a large dispersed centre. If the heart and soul of Albany is to be created, then this requires careful thinking and probably a small range of works and actions which will build a sense of place and community at Albany. There is significant opportunity to leverage off the Albany Mega Centre, Westfield Shopping Centre, the park, and North Harbour Stadium. Connecting the transport hub to the Centre is a key requirement. Implementing the North Harbour Stadium Master Plan and the broad range of complementary uses is advocated. There is a need to create a residential population, to create the 24-hour city. The constraints of the previous significant area of leasehold land tenure in Albany, and current unrealistic price expectations by some landowners, needs to be recognised. Whilst the land has recently become freehold, it is too expensive for the market to be attracted to. This may take some time to unwind and for the land tenure and pricing to adjust to the realities of a new business cycle and environment resulting from the GFC.

8.3.2

8.4

Metropolitan Centres
The draft Auckland Plan provided to the ACPL team identifies 10 Metropolitan Centres. These have been considered in detail. In general, it is agreed that Newmarket, Takapuna, New Lynn/Avondale and Papakura are appropriate

14

Metropolitan Centres that can serve sub-regional catchments. In addition, we recommend that Silverdale be considered as a further Metropolitan Centre based on the discussion further set out in Section 8.4.9 in this report. It is considered that Henderson, Sylvia Park, Orewa and Westgate should be categorised as Town Centres, for the reasons outlined in their respective sections below.
8.4.1

Newmarket Newmarket is a thriving centre. This falls within our business as usual with excellence category. The market is responding well and simply needs enabling and encouragement. The Lion Nathan site has the potential to significantly impact on Newmarket. This is the type of development which would respond well to the toolbox approach outlined in the previous reports to ACPL, such as the City Centre Master Plan Overview Report and Auckland Unleashed Overview Report. Manukau Manukau is considered to be a Primary Centre and one which serves a significant regional function for the southern part of the region. It has a level of importance above that of a Metropolitan Centre. Refer to Section 8.3.1 above for specific comments relating to Manukau. Takapuna Takapuna is a major centre going through its own change. It has lost its preeminence as the focal centre for the North Shore. Albany and Smales Farm have contributed significantly to this. Constraints on Takapuna include the Harbour and Lake Pupuke and, as a result, there is a limited catchment. Office vacancies in Takapuna were 12.8% as at March 2011, which is high. It is noted that Council itself provides for a sizeable proportion of the office space. Takapuna needs to reinvent itself as a seaside village, and be considered together with Milford and its other peripheral areas in order to enable its recognition as a Metropolitan Centre. It is considered that it has the potential to achieve this. Fundamental to the success of Takapuna is how the main street is linked to the foreshore. The Council has important land holdings in this area and can achieve this outcome with an appropriately developed Master Plan. The opportunity for significant further residential development to create a truly mixed use centre exists in this area. This centre is supported as a priority for employment and population growth, as it will service and meet medium/high value employment and population needs.

8.4.2

8.4.3

15

8.4.4

New Lynn/Avondale The New Lynn/Avondale area is considered to be a strong Metropolitan Centre with all the attributes that make it more likely as a Primary Centre for the west. It is also considered to be a Transformation Project. To date New Lynn is a significant success story in achieving the rejuvenation of the Centre and has the opportunity, when considered with Avondale, to further cement this success with market investment. It is recommended that the New Lynn Master Plan be proceeded with, subject to the comments below. There is concern over whether the yields of the Crown properties and Vuksich and Borich sites will achieve the densities contemplated in the Master Plan. Nevertheless, these areas will transform the locality and it will significantly benefit from a residential redevelopment. Even at reduced densities, which the Project Team considers more realistic, these redevelopment areas will significantly add to New Lynn. New Lynn is supported as a priority for employment and population growth. However, we suggest that Council give consideration to New Lynn/Avondale as an economic growth node, investigate linking with Avondale and review opportunities that can be provided from the racecourse asset. To this end, Council should review the Avondale development opportunity study and Highbury triangle development plan. Henderson Henderson is constrained by the limitations on population catchment being hemmed between the Waitakere Ranges and the harbour. It is likely to be a subservient centre to a more dominant New Lynn/Avondale Metropolitan Centre and is therefore considered to be better categorised as a Town Centre. This centre needs a business as usual with excellence approach. Support and enabling is needed for the broad range of activities and uses, both public and private. Sylvia Park Sylvia Park is primarily a retail/office park in single ownership/development. While there is capacity for growth within the owners landholdings, growth is restricted beyond this. Growth opportunities are constrained by the motorway and arterial road network combined with the coastal marine area. The Centre is yet to evolve to the breadth of social and community services inherent in Metropolitan Centres. The Centre lacks a residential base to support a 24 hour Centre. Overall, it is considered more appropriately categorised as a separate Mega Centre/Mall category as opposed to a Metropolitan Centre. Papakura Papakura has the potential to become an important Metropolitan Centre for

8.4.5

8.4.6

8.4.7

16

the south. It is recommended that the current Town Centre strategy is reviewed, modified and updated to meet the Metropolitan Centre objectives relevant to the new super city structure. It is recommended that a revised Metropolitan Centre" strategy be adopted and implemented. A business as usual with excellence approach is required. The significant intensive residential development north of Papakura and the Addison development and future MacLennans Block would significantly benefit from a strong connection to Papakura. Abandoning the proposed Glenora rail station in this location has had a significant detrimental impact on this opportunity. Albany Albany is considered to be a Primary Centre and one which serves a significant regional function for the northern part of the Auckland region. It has a level of importance above that of a Metropolitan Centre. Refer to Section 8.3.2 for specific comments relating to Albany. Orewa/Silverdale In terms of size, capacity for growth and a range of functions, Orewa is considered more appropriate as a Town Centre rather than a Metropolitan Centre. Orewa needs to become a seaside village Town Centre offer. Our view is that Silverdale be given consideration as a Metropolitan Centre and also a Transformation Project. There needs to be a centre of reasonable significance to service the Whangaparaoa, Orewa, Silverdale area. The Hibiscus Coast will not support three centres from a long term economic perspective. Silverdale is the logical centre, given that Orewa has only half a catchment (being on the coast), and Whangaparaoa has accessibility issues if it was to service the Silverdale/Orewa area. However, the current centre is constrained by its topography being in a small valley, and confined by the stream and arterial road. The existing centre is not a long-term solution. If Silverdale is to become the major Centre for the Hibiscus Coast, and if the contention of this report is correct that the current location constrained by topography and the State Highway is problematic, then Silverdale does need a strategic rethink as to where the Town Centre should be and how it is to develop. If the level of investment in the existing Silverdale Centre is deemed too significant and the alternatives too difficult, then an innovative approach will be required to overcome the other constraints of this location. Given the other inevitable priorities of Council and the level of development in Silverdale, this is a location to be watched but not requiring immediate action. However, the final decisions will need to be made before the next major land release in the Silverdale/Orewa corridor. The logical place for such a Centre would be immediately west of the Silverdale-Orewa highway and its intersection with the Whangaparaoa Road. However, this land is now committed and probably unrealistic for land

8.4.8

8.4.9

17

assembly and regeneration.

8.4.10

Westgate

As with Sylvia Park, Westgate is primarily a retail complex with limited office, residential and employment opportunities. The Centre is yet to evolve to the breadth of social and community services inherent in metropolitan centres. The Centre lacks a residential base to support a 24 hour Centre. While there is considered to be growth opportunities within the owners landholdings, this is considered to be more at a localised scale. Overall, it is considered more appropriately categorised as a separate Mega Centre/Mall category as opposed to a Metropolitan Centre.

8.5

Mega Centres/Malls
Auckland benefits from a number of Mega Centres or malls which, in hierarchy terms, lie somewhere between a Town Centre and a Metropolitan Centre. These areas, like Sylvia Park, St Lukes, Westgate and Botany, are major generators of retail and economic activity. They are major destinations in their own right. They have a high reliance on private car access, and this element drives the design and layout of these Centres. The more recent Centres and the upgrade of existing Centres have sought to introduce a balance of private versus public transport. Traditional mall developments have tended to isolate themselves from their surrounding community. They are typically malls in the Centre surrounded by car parking. More recent developments have recognised the value and importance of integrating back into the community. These types of Centres require a different planning and urban design approach. They are a fact of life and a highly popular form of retail. They have the benefit of being in concentrated ownership. There is an opportunity for Council to work with the owners in the redevelopment of these areas to encourage a more mixed mode access and a better integration with their surrounding communities. Over time, some of these Mega Centres/malls may evolve into Metropolitan Centres. They would need to embrace the mix of uses typical of such Centres, including a broad range of social and community uses and the normal mix of commercial, retail and residential activity. They also require a complex multilayered approach to future development. In straight economic value terms, the impact and turnover of these Centres can equal or exceed the identified Metropolitan Centres. However, the focus and investment on a Metropolitan Centre should be on those centres which offer the depth and broad range of public and community services and facilities. It is also considered appropriate to leverage such developments to create community benefits in the future.

18

8.6

Provincial & Local Centres

Satellite Town Centres (e.g., Pukekohe, Warkworth, Helensville), along with the rural fringe areas, will continue to be an important part of the growth strategy. While these are of significantly less importance and impact than intensification and Greenfield policies, they still warrant a considered planning response from Council. A number of Aucklanders enjoy and target the lifestyle that rural blocks and Provincial Towns provide. This lifestyle choice is an essential part of the diversity that makes Auckland an attractive place to live and work. This is part of Aucklands competitive edge, especially when compared to some major Australian cities. In terms of economic development, while the trend is for major businesses to locate close to markets, transport and labour, there are distinctive examples where firms have chosen a satellite location to leverage the workforce available in these regions An important part of the Auckland region is a significant rural economy, which generates employment and economic development.

9.

TRANSFORMATION PROJECTS
The Transformation Projects within the region generally fall into two categories Greenfield Transformation and Brownfield Transformation. Essentially Greenfield Transformation relates to fresh development of a previously undeveloped area. On the other hand, Brownfield Transformation relates to the reassessment of a previously developed area in order to provide a new direction for such areas. Brownfield Transformation projects often have a number of existing constraints and opportunities that need to be appropriately recognised and provided for.

9.1

Greenfield Transformation
9.1.1

Flat Bush Flat Bush is a significant Greenfield growth area. Flat Bush, as a major Greenfields development area, is well advanced. It has a sound planning framework which the market is responding to and implementing. In many ways, the work here is already committed and the course of action decided. Rather than further transformational initiatives, the area needs the standard functions and services of Council delivered with excellence. It is recommended that Council continues to implement the broader Flat Bush Plan Change and refine the Ormiston Town Centre Master Plan. Developing better linkages between the Town Centre and the new residential areas is critical to the on going and long term success of the Town Centre. There is a need to confirm the form of development for Ormiston Town Centre which balances commercial realities with aspirational outcomes, in particular the mall versus main street debate. It appears that there is an opportunity for both outcomes which will meet market drivers and achieve the design aspirations and community focus for Ormiston. The development of the Town Centre should not rely on significant new

19

investment by Council, particularly investment which does not result in a commercial return.
9.1.2

NorSGA (and Hobsonville) NorSGA is a very significant area of vacant land for release to the market. The wider NorSGA/Hobsonville/Westgate area should be considered together when considering this project. An important factor is the need to manage the release of land carefully so as not to deluge the market. Council needs to recognise the impact of high commercial vacancy rates in the Albany basin and the significant competitive elements between Albany and NorSGA. Council should develop the business case and test it to ensure NorSGA provides its perceived regional benefits. If it is justified, then the staged release of infrastructure spend is supported. Council should pace the staging of the NorSGA development and consider the business case for further Council investment in future stages within the context of its broader Auckland region investment priorities (i.e., stages 2 and 3). There is a need to build better connections between the new retail development and Westgate. The Council sought feedback on two specific questions. These are outlined below along with the responses: 1. Should Hobsonville extend to all of NorSGA? - The NorSGA area may need to be reviewed, especially in the context of having a balanced and rational approach toward the regional priorities for infrastructure investment. - In our view, whilst this area will serve local employment and economic growth needs, the area of regional significance for economic, employment and population growth will be served in areas further south. - Hobsonville, while not necessarily required to be formally included as part of the NorSGA area, should be treated as a key node of NorSGA. 2. Should stage 2 and 3 of NorSGA be put on hold? - As indicated above, a review of the timing/hold is required for stages 2 and 3, in the context of the regional priorities for infrastructure investment to support economic growth. - There are concerns over the further release of land particularly in the current market where there is considerable vacancy in Albany.

9.1.3

Silverdale Silverdale has been addressed in detail in Section 8.4.9 of this report. It is considered to be a Transformation Project of significant importance to the north of the Auckland region. The recommendations outlined above are relevant considerations with regard to transformation.

20

9.2

Brownfield Regeneration
The Brownfield Regeneration projects which are considered to be transformational include the following: o o o o The City Centre/Waterfront (refer sections 8.2 and 10.1.1); New Lynn/Avondale (refer sections 8.4.4 and 10.1.3); Tamaki (refer section 10.1.5); and The Mangere Inlet North (refer section 10.1.4).

Each of these areas has been addressed in detail throughout this report. The recommendations identify possible issues and opportunities that can enable the successful regeneration of these areas into the future.

9.3

Community Renewal
9.3.1

Southern Initiative

The Southern Initiative is supported, with the following qualifications: The market will generally be a follower of Central Government and Local Government initiatives. As the viability and quality of the community lifts, private capital investment will follow. It is considered that a complex multi agency solution is required. This needs to be led by Central Government and supported by Local Government. Any material Council investment should be made in this context.

Note: In this regard, this area is primarily outside the commercial property brief and is primarily a social policy matter.

10.

THE IMMEDIATE PRIORITIES FOR COUNCIL INVESTMENT

Council has identified a number of Centres for focused resourcing and investment over the first 3 - 5 years of the Auckland Plan.
10.1.1

City Centre, including Waterfront

This Centre is supported as a top priority for employment and population growth. The City Centre has been comprehensively covered previously by the Project Team. For further on the City Centre, please refer to the City Centre Master Plan Overview Report to ACPL, dated 15 July 2011. Hobsonville

10.1.2

Generally, this Centre is supported as a priority for employment and population growth. However, it is felt that there is little left for the Council to do in this Centre, and the focus should be on enabling the market to respond to the Councils initiatives. New Lynn

10.1.3

This report agrees with this Centre being an immediate priority for Council investment.

21

In addition to the points made in regard to New Lynn/Avondale Metropolitan Centre in Section 8.4.4 of this report, we recommend the development of a high level implementation plan and timeline to provide practical actions which will give effect to the New Lynn master plan. Onehunga Town Centre and Suburban Opportunity Area

10.1.4

This report identifies the Mangere Inlet North area as being one of significant opportunity, which is supported as a priority for investment. The area includes Onehunga, Te Papa and Mangere North. It is also considered to be a Transformation Project. The area would benefit from a Master Plan approach that links together the broad coastal margin in this area. The value of coastal development in this area is derived from both commercial and public amenity values. The light industrial area of Onehunga/Te Papa can be built upon to improve and increase employment opportunities. The Onehunga Town Centre can benefit from a development opportunity study perspective including opportunities for Council owned land. The market is interested in Onehunga. The centre has a number of inherently attractive qualities, such as its proximity to transport connections, employment zones, amenities, and the foreshore. Council will need to address some planning constraints (such as residential zoning issues for intensification) to ensure the success of this area. It is recommended that regulatory rules are reviewed in order to allow increased density/height in appropriate locations - particularly where high residential amenity values exist. Tamaki Town Centres and Suburban Area

10.1.5

This centre is supported as a top priority for both residential intensification and economic growth. It is also considered to be a Transformation Project. Tamaki is considered a special urban regeneration case with an important Central Government and Local Council partnership. This report recommends that Council only invests after a credible Master Plan, development plan and development agreement is completed. Once this has occurred, then there should be a full Council commitment to regeneration. It is recommended that full Council involvement in the governance arrangements be maintained if long term investment (of either cash or land) is required. Takapuna Metropolitan Centre

10.1.6

As noted in Section 8.4.3 of this report, it is agreed that Takapuna is an important Metropolitan Centre and is an appropriate priority for Council investment. Warkworth Satellite Town

10.1.7

The regional benefit of Warkworth as a Town Centre priority is questioned.

22

As a result, the prioritisation of this centre is not supported when compared against broader regional priorities. Warkworth has a critical servicing role for the Matakana-Leigh corridor and Mahurangi Peninsula, as well as the rural hinterland. In many ways, Matakana is taking over the quirky village visitor role from Warkworth. If the major realignment of State Highway 1 proceeds, then Warkworth will be impacted. It will be enhanced by losing the commercial heavy vehicle traffic and high volume private vehicle traffic. However, in addition it will also lose out on the casual stop off visitor, which is important for keeping the local retail and food and beverage industry viable. Given the difficult prioritisation of scarce resources the Council faces, Warkworth is not a major priority. However, it does warrant some focus from Council to give assurance that the normal functions and services which Council offers can, and will be, delivered with excellence. Pukekohe

10.1.8

The Pukekohe/Paerata/Tuakau/Pokeno area offers significant opportunities for growth in the South. Connectivity to rail, the Waikato, Auckland and the airport are all factors which over time can and will assist. The potential for growth in this area is significant. This needs to be balanced against the important rural function these areas provide. Pukekohe would benefit from a Council focus that ensures the current functions and services of the Council are delivered. In addition, it is also recommended that Council considers the inclusion of other growth centres further south (i.e., along the Auckland-Hamilton corridor) to serve southern regional economic growth. Key areas may include Papakura/Takanini, with Pukekohe as a sub-regional node.

Figure 2 summarises the proposed categorisation of the various centres/projects within the Auckland region, as set out in this report.
PRIMARY CENTRES TRANSFORMATION PROJECTS
Greenfield Flat Bush NorSGA Silverdale Brownfield City Centre/Waterfront New Lynn/Henderson Tamaki Mangere Inlet North Community Renewal Southern Initiative Albany* Manukau*

MEGA CENTRES/MALLS
Sylvia Park* Westgate* St Lukes Botany

METROPOLITAN CENTRES
Newmarket Takapuna New Lynn/ Avondale Papakura Silverdale Onehunga Pukekohe* Flatbush NorSGA (&Hobsonville) Tamaki

TOWN CENTRES
Henderson Orewa

PROVINCIAL & LOCAL TOWN CENTRES

*These centres have been cited in the Draft Auckland Plan but are not recognised under this category

Figure 2 - Proposed Categorisation of Auckland Town Centres/Transformation Projects

23

11.

ROLE OF COUNCIL
The conclusion of this report is that there are two fundamental roles Council can take in Metropolitan/Town Centres and major Transformation Projects/Development Areas/Growth Corridors. The first we have called Business as Usual with Excellence. The second is referred to as Transformational.

11.1

Business as Usual with Excellence

In the majority of situations, Council already has the functions and provides the services necessary for the market to respond. Council needs to be an enabler of the market and not act or be perceived as a constraint. Being an enabler drives confidence in the market which fundamentally underpins investment and growth. To be an enabler is about the organisations culture and actions. This approach is about Council undertaking its current functions and delivering its current services to a consistently high standard. The functions and services which Council can deliver and which, if delivered with excellence, will be seen as enabling market investment and development in Town Centres, are: A supportive, quick, assured regulatory and consenting process.

- A strong and supported vision with community buy in, which is tailored to the unique attributes of the Centre. - A planning framework which drives quality development and supports investment in Centres and mixed used development of Centres. This is both through the Unitary Plan and area plans. - A robust maintenance and capital expenditure renewals regime which ensures assets are maintained to a high standard and a Centre presents itself as a vibrant, confident place. - Doing the core services well. This includes refuse collections, street cleaning and graffiti removal. These are all designed to underpin ownership and confidence in a centre. - Appropriate parking and transport policies are critical to the workability of Town Centres. - Supporting business/community initiatives, such as main streets, to provide an organisational and funding structure in Town Centres. The critical element is to get Town Centres to devote realistic funding opportunities that enable them to be effective.

11.2

Transformation Projects
Some Metropolitan/Town Centres and major Transformation Projects/Development Areas/Growth Corridors will require more direct intervention by Council. This can range from catalytic projects to full regeneration programmes. The crucial element is that the market needs some stimulation or assistance

24

to trigger investment in the area or to deliver on Councils broader planning aspirations. Other key aspects are: - Council should deliver the core elements set out above under the Business as Usual with Excellence approach. - The fundamental matter is the assembly and strategic packaging of key land holdings. This can be either exclusively by Council or in partnership. - New capital expenditure initiatives can significantly impact investment confidence. This can range from new public facilities to streetscape and infrastructure improvements. - Catalytic projects, under ACPLs role, are an important tool to prove the market. These demonstration projects become a benchmark, not only for the design of an area, but in terms of demonstrating the investment potential and the market attractiveness of certain forms of development. - Large project account management. Assistance to navigate significant projects through the Council system and its CCOs is a critical advantage. The account management programme in the resource consent department and the City Transformation team go a significant way towards this. Complementing this must be the commercial perspective, which can either be gained in-house or brought in via a contract or consultant to individual projects. Before embarking on individual Transformation Projects, Council needs to develop a strategic investment decision making framework. The decision guidelines in Section 6 and Section 7 of this report identify the areas for consideration. Before triggering a fully funded Transformation Project, Council needs to prepare a robust business case to evaluate the strategic investment opportunities and consequences of an individual Transformation Project. This business case should identify the key economic and social parameters. It is not necessary for every project to demonstrate a strong financial return. It is critical to be transparent in the costs and returns so that informed decision making and prioritisation can take place. In some cases, social imperatives will support business decisions which will require financial support. The reason this is critical is that if financial support will be needed, but the budget is not available, then the positive work of Council will be misplaced and the market will work against the intended initiatives. Conversely, if there are very good social reasons to support the Town Centres with public money and this is demonstrably funded, then the market will accept and respond to this.

12.

ROLE OF ACPL
The role of ACPL should be to: Play a critical role in reinforcing and delivering the Councils vision and programme with particular regard to leveraging off ACPL's land holdings. Undertake and support public sector initiatives; this can mould and encourage the market. Well-structured and de-risked catalytic projects to initiate the market are an important role of ACPL.

25

Recognise that the market is cyclical. Laying the groundwork for the next emerging cycle is a legitimate role of both the Council and ACPL. Focus on areas requiring intervention. If the market is going to respond anyway then there is no need for ACPL intervention. If there is no market response then ACPL is likely to be at risk of significant energy and cost for little return. The focus should be directed on those catalytic projects which will result in an appropriate market response. Partnerships should be a preferred modus operandi for ACPL. Coordinate private sector, CCO and stakeholder involvement and lead opportunities where it can utilise its holdings to influence outcomes that meet Council objectives. If Council does decide ACPL needs to have a focus on affordable housing, there is significant opportunity in the Housing New Zealand portfolio to promote urban intensification and affordable housing policies. Provide a rigorous analysis of the development opportunities in the Transformation Project areas. Such a role may entail: - Identification of the key Council landholdings and how those landholdings can stimulate broad investment and quality development. - Identification of land that can be divested to create a fund for further strategic land purchases and development. - Identification of critical partnerships that can be established in whatever form to promote quality development. - Identification of key areas which would significantly benefit from Council property investment.

Undertake a detailed analysis of each of the priority investment Town Centres at a site by site level. Utilise a development opportunity study which can drive both public and private sector development. Identify opportunities for partnering with private sector players to de-risk developments and leverage investment opportunities. Control the quality of development so that investments mutually support each other in building value, both in terms of the community and economic impact, as well as providing a capital return to the investor.

26

COUNCIL DRIVEN High Council Investment/Intervention Required

Appendix I:

New Lynn

Tamaki NorSGA
Onehunga/ Mangere Inlet
HEIRARCHY KEY (in terms of resource and effort) Immediate Priority Requires Review as a Mid-term Priority Low Immediate Priority *Note that the City Centre is not included in this Diagram, as it has been previously and separately covered in the Overview Report to ACPL on the City Centre Master Plan

Silverdale

Manukau

Low Impact
Albany
Pukekohe Henderson

High Impact

Papakura

Flat Bush

Takapuna

Orewa

Sylvia Park

Newmarket

MARKET DRIVEN Low Council Investment/Intervention Required