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I hereby give notice that an ordinary meeting of the Auckland Development Committee will be held

on:

Date:
Time:
Meeting Room:
Venue:

Thursday, 14 April 2016
9.30am
Reception Lounge
Auckland Town Hall
301-305 Queen Street
Auckland

Auckland Development Committee
OPEN ADDENDUM AGENDA
MEMBERSHIP
Chairperson
Deputy Chairperson
Members

Deputy Mayor Penny Hulse
Cr Chris Darby
Cr Anae Arthur Anae
Cr Cameron Brewer
Mayor Len Brown, JP
Cr Dr Cathy Casey
Cr Bill Cashmore
Cr Ross Clow
Cr Linda Cooper, JP
Cr Alf Filipaina
Cr Hon Christine Fletcher, QSO
Cr Denise Krum
Cr Mike Lee
Member Liane Ngamane

Cr Calum Penrose
Cr Dick Quax
Cr Sharon Stewart, QSM
Member David Taipari
Cr Sir John Walker, KNZM, CBE
Cr Wayne Walker
Cr John Watson
Cr Penny Webster
Cr George Wood, CNZM

(Quorum 11 members)
Tam White
Democracy Advisor
11 April 2016
Contact Telephone: (09) 890 8156
Email: Tam.white@aucklandcouncil.govt.nz
Website: www.aucklandcouncil.govt.nz
Please note: Any attachments listed within this agenda as “Under Separate Cover” can be found
at the Auckland Council website http://infocouncil.aucklandcouncil.govt.nz/.

Note:

The reports contained within this agenda are for consideration and should not be construed as Council policy
unless and until adopted. Should Members require further information relating to any reports, please contact
the relevant manager, Chairperson or Deputy Chairperson.

Auckland Development Committee
14 April 2016
ITEM TABLE OF CONTENTS
14

Transform Manukau High Level Project Plan Urban Regeneration Project

PAGE
5

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Auckland Development Committee
14 April 2016

Item 14

Transform Manukau High Level Project Plan Urban Regeneration
Project
File No.: CP2016/06261

Purpose
1.

This paper outlines the content and seeks the Auckland Development Committee approval
of the High Level Project Plan (HLPP) for Manukau Metropolitan Centre and its surrounds
know as Transform Manukau. Approval of the HLPP will provide the mandate for Panuku, as
the lead agency in Manukau, to progress with detailed communications/engagement,
framework planning and development realisation processes.

Executive Summary
2.

Transform Manukau’s vision is for Manukau to become “The thriving heart and soul of the
South”.

3.

Panuku Development Auckland (Panuku) will provide an integrated and holistic set of
strategic responses to the challenges and opportunities this location presents. To realise the
true benefits of urban regeneration this paper seeks the adoption of the High level Project
Plan and through this, the mandate to dispose of some properties within the Transform
project area.

4.

Panuku will develop a Framework Plan for Manukau which will progress and refine the
alignment between parties and entities to confirm an integrated approach to development
that will include contributions to empowering communities, lifting socio-economic well-being
and building quality, people oriented urban environments collaboratively.

Recommendation/s
That the Auckland Development Committee:
a)

adopt the attached High Level Project Plan (HLPP)

b)

endorse Panuku as the lead Council agency for the Manukau regeneration project
given its status as a Panuku Transform location

c)

endorse Panuku, subject to Finance and Performance Committee approval, to
dispose of the five Auckland Council properties within the Transform project area
listed below and referenced in attachment C, to contribute to achieving the outcomes
in the HLPP and with the objective of achieving urban regeneration, renewal and
housing:
i)

2 Clist Crescent car park (in front of Rainbow’s End) - NA45C/155

ii)

2 Davies Avenue (Ronwood car park) - CT 49758

iii)

8 Davies Avenue (car park) - CT NA62D 735

iv)

14 Davies Avenue (car park) - CT NA25B 679; CT NA62D 740

v)

9 Osterley Way (car park) - CT NA62D 733

subject to:
1. the satisfactory conclusion of the required statutory processes
2. agreement with Auckland Transport on the transport outcomes required for the
sites (ii to iv above)
d)

note that five additional Auckland Council properties within the Transform area are
already cleared for sale and subject to the outcomes of the HLPP and the
Framework Plan and with the objective of achieving urban regeneration, renewal and
housing and are listed below:

Transform Manukau High Level Project Plan Urban Regeneration Project

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Auckland Development Committee
14 April 2016
i)

655 Great South Road (Westfield car park)

ii)

20 Barrowcliffe Place (vacant land)

iii)

31-33 Manukau Station Road (Lot 59A and B)

iv)

50 Manukau Station Road (vacant land next to police station)

v)

Sec 1&6, Manukau Station Road (vacant land opposite MIT)

e)

note that Panuku will consider service properties and community facilities in the
Transform project area that may further contribute to achieving the outcomes in the
HLPP. Panuku will liaise with Council business owners and the Local Board through
the framework planning phase. Panuku will seek further approval from Council if the
proposed contribution of these properties to the HLPP outcomes, either in whole or in
part, directly affects existing or proposed community facilities/service properties.

f)

support the reinvestment of proceeds of sales of development sites in the Transform
project area, into projects and initiatives that progress the intent of the HLPP and
Framework Plan with all CAPEX based on a business case to be detailed in a future
paper to the Council

g)

approves the operating expenditure budget of $1.9m utilising a reinvestment
approach, subject to approval from the Finance and Performance Committee as part
of the Annual Plan 2016/2017 process, for the following work:
i)

The Manukau Framework Plan

ii)

An Engagement and Communication Plan

iii)

An Implementation Plan

iv)

Early place making and activation

h)

note that Panuku will enter into a more formalised governance arrangement or
partnership with Crown entities and other parties as necessary to provide leadership
and accountability in the implementation of the project.

i)

endorse the planning and development process that underpins the proposed
approach as set out in the HLPP.

Comments
5.

6.

The Challenge
Manukau is a disconnected regional centre designed with a car based layout and anchored
by large scale facilities. Private sector investors and businesses have had limited opportunity
to contribute to the central area with new uses and activities.
There are limited local residents and ancillary neighbourhood facilities in the central area.
Despite Manukau being at the centre of a high demand and broad growth area, the central
area itself, given that it is surrounded by industry, large format retail and motorways,
combined with poor perceptions of safety and the lower socio-economic status of the
surrounding residential catchment, have rendered development financially challenging.
Recent developments, many led by the public sector, have lacked overall cohesion. In short
the centre has failed to present a strong identity to the region as a desirable Metropolitan
Centre of scale and significance in which to invest.
The opportunity

7.

Manukau has significant scale and historic status as a City Centre. Together with an
enabling planning framework as the third largest Metropolitan Centre in Auckland, and
significant Council property holdings, means it is well placed to physically deliver quality
regeneration at scale and pace.

Transform Manukau High Level Project Plan Urban Regeneration Project

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8.

Council has a current total land holding of approximately 95ha within the project area.
Approximately 20 ha of this are potentially developable in the immediate and near term, with
a combined current rating assessment land value of approximately $100m. This value has a
wide value range and is conservative as it assessed from 2013 and is prior to value creation
and the transformation process. Service properties and their potential value, if any, will be
considered through the framework planning phase.

9.

Council can utilise its significant landholdings and facilities to bring about effective and
coherent urban regeneration through disposal, development partnerships, or optimisation of
these properties. Manukau is strongly connected to the transport network by all modes and
is the closest centre to Auckland Airport, which presents a significant opportunity. Finally,
Manukau has infrastructure that has capacity to deliver on development opportunities that
other new growth areas are struggling to address in a timely manner.

10.

Vision
Manukau: The Thriving Heart and Soul of the South

11.

Manukau metropolitan centre becomes the thriving heart of our area: an attractive visitor
destination, business centre and place to shop, live, learn, work and play.

12.

A set of aspirational outcomes and core principles below provide a platform for the key
strategies to transform Manukau and will guide future project initiatives that will be
recommended through the framework planning phase.
Outcomes and benefits of transformation

13.

Urban regeneration of this scale will bring benefits and outcomes that will position Manukau
as a strong, competitive and complementary Metropolitan Centre to the City Centre.
Potential outcomes and benefits include;
a. A colourful, vibrant, family friendly centre with a local heart, that reflects and celebrates
our diverse cultures
b. A strong, permanent, residential population which lives, learns and works within the
centre
c. New uses and activities that will support the centre’s emerging evening and weekend
economy
d. Hayman Park and Puhinui Stream becoming attractive, safe and accessible green lungs
e. Manukau becoming a thriving visitor destination of choice
f.

The centre being reconnected to the south: its local people, anchors and
neighbourhoods (Maori, Pasifika, Events Centre, Wero and Wiri)

g. A desirable and innovative place to do business that promotes and stimulates local
enterprise and attracts new investment
h. The involvement of the local people in the urban regeneration process contributing to
new community benefits and improved socio-economic well-being.
Principles in undertaking transformation:
14.

All aspects of the project planning, design, engagement and implementation will consider
these principles through each aspect and work programme:
 Governance: Establish a strong, inclusive and accountable governance structure which
includes community engagement, framework planning, partnering with other parts of
Council and Crown entities
 Transit–oriented development: Guide Manukau Central towards becoming an
exemplar Transit Oriented Development that fully capitalises on the Metropolitan Centre
zone

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 Market Attractiveness: Change and improve the perception of Manukau by leading the
market in consolidating the centre.
 Integrated & partnership approach: Holistic transformation through coherent and
integrated strategies, projects and outcomes in partnership with the community,
organisations and Crown entities.
 Socio-economic well-being: Contribute to increasing and improving the social and
economic well-being of the local area’s people, businesses and communities to unlock
economic potential and reduce social assistance needs
 Think local: Focus urban regeneration and community development towards “thinking
local” with emphasis on developing a local heart for Manukau reflected by building to a
human scale.
Five strategies to realise the benefits:
15.

Panuku will seek to deliver transformation on targeted projects (including anchor, catalytic
and exemplar projects), through the following five key strategies which will identify the key
moves, actions and initiatives necessary to implement change and rapid transformation:
a. A people oriented design and delivery strategy
b. A community benefits strategy
c. A housing strategy
d. A Manukau repositioning strategy
e. A financial investment with leverage strategy, including development realisation and
value creation.
Value creation:

16.

As part of the framework planning process we will establish the procedure to assess and
report on the creation of value arising from implementation of the Framework Plan.

17.

Value creation will address the baseline values, both commercial and non-financial, of
existing assets and future increases in value at key project milestones. In addition, estimates
of developed project values will be determined for the Council assets, which will be the
subject of realisation and development by the private sector through the market process.
Consideration will also be given to reporting on value creation in the context of other service
assets held by Council that will benefit from the activities of Panuku.

18.

Reporting on commercial value creation will identify the nexus between the actions of
Panuku and the value implications, and also seek to isolate value effects from broader
issues such as general market movements. In addition to the above, the project will also
seek to report on wider value creation associated with economic and social factors such as
employment creation, housing choice, community safety and wellbeing etc. This element will
be further detailed and assessed as part of the framework planning and implementation
stages of Transform Manukau.
Indicative staging: “Start with the Heart”, Davies Ave Axis, Puhinui Corridor
The HLPP recommends a high level staging approach: -

19.

First and near term stage - ‘Start with the Heart’, the centre of Manukau, to leverage off
existing public and private investments, and to take advantage of Council’s strong, well
located property portfolio in close proximity to amenities and transport options. It is
recommended that the short term projects within the centre be those located along the
Davies Avenue axis, and those responding to current projects such as the bus station and
Kotuku House refurbishment. Each of these projects requires investigation as to their
integration within the wider transformation and alignment with its objectives.

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20.

During the near terms stages focus effort over SH20 into Barrowcliffe as an exemplar and
perception-shifting project. This will forge the critical cross motorway link, and act as a
catalyst to further development along the Puhinui Stream corridor (Te Araroa trail). This
second stage will require collaborative planning and development with Crown entities
including Housing New Zealand (HNZ) and the District Health Board’s (DHB) Super Clinic
49ha site.

21.

In parallel, work with Westfield and the Sports Bowl to refocus efforts north of the centre will
be ongoing. The latter stages of development will then focus on the Ronwood Avenue
/Cavendish Drive area, once market perceptions, planning, engagement and the readiness
of redevelopment of private land becomes more favourable.

Financial implications of transformation and investment approach
22.

This Transform project will require significant funding for both operational and capital works.
It has been estimated indicatively at this early pre-framework planning stage that around
$70m worth of public good investment projects will be needed to realise the necessary
anchor, exemplar and catalytic initiatives. Some of these public investments will be in
streetscape upgrades, greenways, stream restorations and place activation. Other initiatives
will be focusing effort on better integration between current projects and work streams in the
area. For example, the bus station project presents some significant spatial challenges,
which if left un-corrected could erode the quality and intent of recommendations in this
HLPP. Similarly, the Kotuku House refurbishment project would be optimised and enhanced
by considering other integration options beyond solely a building refit.

23.

The proposed funding strategy to deliver on these public works is the revinvestment of the
proceeds of asset realisation. This approach recognises that the current funds within the
LTP budgets do not include funding for any Transform locations capital or operating
expenditure. The proposal is for Transform Manukau (and Onehunga as the other Transform
location) expenditure to be funded from reinvestment of proceeds from properties which are
disposed within each of these locations. Any associated group debt and rates impact will
need to be approved by the Finance and Performance Committee.

24.

Panuku will commence the framework, design, engagement and implementation planning
along with early place making which will require a budget of $1.9m to complete. These
internal and external costs will not be recoverable against specific sites. It is recommended
that these costs will be approved as part of the Annual Plan 2016/2017 process, and are
seen as part of the reinvestment approach.
Project funding strategy

25.

The Transform Manukau project will require significant funding for both operational and
capital works in the short, medium and long term as outlined by the intent of the Panuku
Transform category as highly custodial locations. The scale of transformation envisaged
cannot be achieved within current budgets and funding for Transform Manukau will require
access to a number of funding sources:
a. The primary proposed funding source to deliver the range of Transform Manukau
projects is through the reinvestments from proceeds of asset realisation. This proposal
recognises that the current funds within the LTP budgets do not include funding for any
Transform locations capital or operating expenditure. It is proposed that the Transform
Manukau (and Onehunga as the other Transform location) expenditure is funded from
reinvestment of proceeds from the sale of properties which are disposed within each of
these locations.
b. The reinvested funds from sale proceeds would be used for OPEX associated with
preparing the HLPP and undertaking the subsequent Engagement, Framework and
Implementation Plans.
c. The utilisation and reprioritisation of existing Council budgets towards delivering the key
strategies and initiatives, such as through the Spatial Priority Area process.
d. Possible access to funds arising from a partnership approach with government.

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26.

There are several possible supplementary OPEX and CAPEX funding options available to
Panuku including the potential to re-apply Council LTP funds, Panuku Development and
Strategic Development Funds, Local Board discretionary funding, the AT Local Board
Capital Fund and the Local Residential Growth Fund subject to its criteria. All of these will be
investigated in order to assist in the overall funding and financial investment with leverage
strategy.
Project related budgets

27.

The plan recommends an operating budget of $1.9m to take the project to the completion of
the implementation and development realisation planning and is broken down as follows:
Framework Plan - $810,000 (to end of implementation planning, 2016/17 FY)

28.

The internal (including wider Council) contribution in terms of person hours is estimated at
3500 person hours, which equates to approximately $380,000 using internal charge out
rates. The external consultant support required is estimated at approximately 1720 person
hours or $380,000 (based on an average hourly fee of $220). Additionally, there is
estimated to be $50k of fixed/sundry costs such as for photography, document printing,
room hire etc. The total financial cost to Panuku of the Framework Plan excluding internal
resource is $430,000.
Engagement, Communications Plan - $170,000 (to end of implementation planning,
2016/17 FY)

29.

This amount covers Stakeholder engagement and communications activities during the
HLPP phase and planning for the framework planning phase immediately post Council signoff. Specifically the amount includes: the creation of an engagement plan, iwi engagement,
engagement workshops (internal and external), a community event, communications
material and the development of a repositioning strategy. This amount includes Panuku staff
time (approximately 510 hours) and ancillary consultant fees.
Work by the Strategy team - $90,000 (to end of implementation planning, 2016/17 FY)

30.

The internal (including wider Council) contribution in terms of person hours is estimated at
350 person hours, which equates to approximately $42,000 using internal charge out rates.
The external consultant support required is estimated at approximately 180 person hours or
$40,000 (based on an average hourly fee of $220). Additionally, there is estimated to be
$8000 for a 5% contingency and some fixed/sundry costs such as catering, van and room
hire, document printing etc.

31.

These funds are anticipated to be used to procure advice and information on generating
targets, KPI’s and goals to underpin the community, housing, branding and place strategies.
This will support the framework and feasibility planning process. This budget includes advice
on value creation and a contingency for external advice as needed.
Work by the Development team - $350,000 (to end of implementation planning,
2016/17 FY)

32.

Pre-capitalisation funding of $350,000 is over seven sites and comprises of an estimated
1044 internal council person hours (which equates to $125,000 using internal charge out
rates). External consultant support providing an estimated 944 person hours or $207,000
(based on an average hourly fee of $220). Additionally, there is estimated to be 5%
contingency $15,000 which includes of fixed/sundry costs such as for photography,
document printing etc.

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33.

This budget, which includes 471 internal staff hours, is intended to initiate Panuku’s early
presence in Manukau. It will ensure that the process of transformation is underway during
framework and implementation planning, in the short term as well as in the medium and long
term. The projects and initiatives in this budget will help to plan, design and initiate place
making such as events, art installations, interactive, creative spaces and an early activity
calendar. This could also include tactical urbanism and “gap filler” projects. However the
majority of the budget would enable the construction of temporary structures to use in
various places and spaces around the central area and allow them to cater for food,
beverage and event/engagement facilities as necessary. This place making budget will add
value by activating and enlivening the bus station construction works area and provide
messaging and signage of the Transform Manukau vision and objectives. This messaging
could contribute to building excitement and potentially help to activate the empty spaces and
reduce the poor perception of safety and crime.

Background
34.

In October 2015, The Auckland Development committee (ADC) formally endorsed Manukau
as one of nine locations for further investigation and consideration by Panuku.

35.

In December 2015, ADC was presented with the priority development location process and
emerging development work programme that included Manukau as a “Transform” location.

36.

A workshop was held with the Ōtara-Papatoetoe Local Board and Manurewa Local Board
chair on 16 February 2016 where the initial vision and outcomes were presented. Feedback
was supportive of the work to date and appreciative of the fact that the substantial issues
have been identified early on.

37.

An iwi and hapū site visit and two workshops were conducted on 24 February and 15 March
to inform the process and product in the HLPP.

38.

A workshop was held with the Auckland Development Committee on the 29 March 2016
where the key vision, strategies, principles and staging were presented along with an
approach to funding and the initial financial implications of the Transform Manukau project

39.

The Transform Manukau HLPP was approved by the Panuku Board on 30 March 2016.

40.

The purpose of the HLPP is to establish the context, engagement plans, framework planning
approach and realisation strategy, including the necessary mandate, to enable Panuku to
facilitate the redevelopment of selected Council sites within the Transform Manukau project
area consistent with Panuku and Council strategic objectives. The key deliverables arising
from the HLPP are:
a. An Engagement and Communication Plan
b. A Manukau Framework Plan that will give effect to the HLPP and its strategic objectives
for the regeneration of Manukau
c. An Implementation Plan (execution) for each site under consideration which will include
the approach to development realisation and value creation which provides a platform for
future implementation and project execution

Strategic and Panuku business context
41.

Manukau is at the centre of significant interagency focus and collaboration through The
Southern Initiative (TSI), its designation as a Spatial Priority Area (SPA) of Auckland
Council, a Panuku Transform location and the pilot focus area for an emerging workstream
know as Manukau Collaborative Development at Scale (CDAS), a shared Panuku, Council
and Crown initiative. The project area is home to around 6000 residents and 20,000
workers. It has benefited from significant investment both historically and in more recent time
includes the new state-of-the-art Manukau Institute of Technology (MIT) education campus
building and trenched Manukau train station, the Vodafone Events Centre, the new Wero
White Water project and the planned Manukau bus interchange.

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Early place making - $480,000 (until end of June 2017)

Auckland Development Committee
14 April 2016
Previous planning for Manukau Central has been extensive. It has long been identified as a
key location for growth and development and is a major metropolitan/sub-regional centre (a
CBD of the south). However it has underperformed and not realised its potential. It is clear
that transformation will not happen by the market forces, liberal planning regulation or
advocacy alone. A public sector intervention and urban regeneration, renewal and housing
process is required to respond to the range of issues and challenges facing Manukau central
and its surrounding Wiri suburban area to the south which comprises the main project area.

43.

As set out in the Statement of Intent, Panuku is charged with leading urban transformation
and regeneration, facilitating vibrant development and accommodating growth.

44.

The organisation’s vision is “Shaping Spaces for Aucklanders to love”.

Item 14

42.

Panuku business plan context
45.

Business Plan objectives, as applied to Manukau are as follows:
a. To facilitate the high quality urban redevelopment and transformation of Manukau central
b. To co-ordinate the provision of Council’s infrastructure and other investment in Manukau
c. To facilitate investment in Manukau through collaboration with the private sector, third
sector, Iwi and government as partners in the urban redevelopment
d. To undertake framework planning, engagement, place making, activation and
development projects to catalyse and encourage private investment
e. To facilitate quality redevelopment of under-utilised Council landholdings in Manukau to
drive commercial and strategic value as part of urban transformation
f.

To facilitate housing development and an increase in housing supply and residential
choices, including housing in the affordable spectrum and Housing for Older People,
working with partners, in order to accommodate growth

g. To harness and incorporate the local community's unique identity, attributes and
potential to create vibrant communities, through engagement and place-making
h. To identify leadership opportunities to deliver projects that demonstrate affordability,
universal design, sustainability, high quality urban design, place-making, economic
development and value for money
i.

To develop strong, meaningful and productive relationships with Iwi to achieve shared
outcomes in Manukau

j.

To ensure Council properties are managed and maintained and achieve optimised net
returns for the Council group

Panuku corporate responsibilities in Manukau
46.

A Corporate Responsibility Framework is being developed to articulate the strategic
objectives and aspirations that Panuku is committed to achieving and how these will be
advanced. Panuku is required to strike a balance between commercial and strategic
outcomes and being transparent about non-financial outcomes. Preliminary aspirations for
Manukau are:
a. Affordable Housing – 10% market or 5% retained in all residential projects as a
minimum, consistent with the requirements of private developers in SHAs
b. Housing choices – a range of typologies, sizes and price points to suit different markets
c. Accessible and sustainable design standards appropriate to the market and with a
specific focus on affordability for the consumer, supporting sustainable lifestyles and
diverse population, including the young, old, disabled and families. A minimum of 20%
accessible units, including all ground floor units.
d. Landscaping that supports the amenity, biodiversity and environmental objectives of the
framework plan

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f.

Appropriate density and typology – densities in the centre are supportive of transitoriented development

g. Designing with climate change in mind – such as ensuring shade and shelter,
buildings tolerate extremes of heat, storm water management
h. Seeking development opportunities with mana whenua, iwi, hapu and other Māori
organisations
i.

Environmental action and green growth, sustainable land development

j.

Recognition and celebration of Māori cultural values and heritage, to anchor and build
on a Māori identity that is Auckland’s point of difference.

Transform Manukau project area
47.

The project area is illustrated below and covers 600ha. It aligns closely with emerging
Council and community partnerships, work streams and landholdings with the Crown
entities. Attachments B and C provide a more detailed map of property ownership in the
project area and details the ownership of 10 sites in the central area with immediate and
near term potential.

48.

The project area includes the whole Metropolitan Centre zone (Pink with hatch) which
represents the Auckland Council Spatial Priority Area (SPA) process, the Manukau Sports
Bowl site (light green) and the Wiri suburban neighbourhood to the south (peach) including
the large 49ha Manukau Super Clinic site (grey) controlled by the Counties Manukau District
Health Board.

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e. Mixed uses, where ground floor activation is appropriate and commercially viable

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Figure 1 and 2 Project area for Transform Manukau

Council property summary
49.

The Council portfolio comprises approximately 40 properties covering over 95ha of land and
is shown in yellow above, of which most is made up of open space and reserves, sports
facilities and service uses. An area of approximately 20ha has some development and
optimisation potential in the immediate and near term future; these properties are all located
within the central area. There are other longer term opportunities that will be explored
through the framework planning phase such as the redevelopment of the Manukau Sports
Bowl, remaining opportunities at the Pacific Events centre and the Council’s core service
accommodation properties of Kotuku House and the Civic. The opportunities can be
summarises as being in three groups:

50.

Immediate potential- vacant land: There is 8.6ha of vacant land in four properties that are
already cleared for sale and present real development potential to catalyse new
development and contribute strongly the outcomes sought in the HLPP. These properties
are scheduled in attachment C.

51.

Near term potential- car park sites: A combined 10.4ha across six car parking sites
including the Westfield car park present near term opportunities to redevelop these
underutilised surface parking properties for a range of both commercial and non-financial
public good outcomes. Four of these sites (1.7ha) are currently managed by AT and are well
located opposite Hayman park and close to transport and amenities on the Davies Avenue
corridor. These four sites present a clear transformation opportunity for a series of exemplar,
perception changing residential and mixed use development projects. The Clist Crescent car
park (0.43ha) in front of Rainbow’s End similarly presents a great opportunity for
development at the gateway to the central area. The potential transformation opportunity at
the Westfield Shopping Centre car park (8.36ha) is to redefine and anchor the central heart
of Manukau by utilising the car park and its adjacent property for redevelopment including
the potential for mixed use and residential outcomes.

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52.

Medium to long term potential – service properties: Properties such as Kotuku House,
the Manukau Plaza, The Manukau Civic and some minor landscaped open spaces all
present opportunities to reconsider use and efficiency in the central area. There is potential
to optimise and enhance their quality and range of public service and amenity and consider
some commercial uses if appropriate.

53.

Likewise there are may be some opportunities to enhance and optimise some large open
spaces, sports and events facilities. Hayman Park (10ha), the Puhinui stream (14ha), the
Manukau Sports Bowl (21ha) and the Pacific Events centre (14ha) will be explored further
during the framework planning phase to understand their potential for both community
benefit, enhanced people oriented design or financial opportunities.

54.

There is limited redevelopment and optimisation potential for the remaining Council
landholdings in the project area which includes Rainbow’s End (7.5ha) with a long term
lease, local open spaces in existing Wiri communities, a stormwater area, historic reserves
and a small cemetery on Manukau Station road. A Housing for Older Persons (HfOP) site of
0.5ha is within the project area but is subject to a separate Panuku led assessment project.

Project considerations
Statutory considerations
55.

The Transform project area includes the entire Metropolitan Centre zone and Manukau
Precinct under the Proposed Auckland Unitary Plan (PAUP) which are enabling zonings
supportive of intensive residential and commercial development. The wider part of the
Transform project area includes some Mixed Housing Suburban, Mixed Use, General
Business, Light Industry, Heavy Industry, open space and Special Use zones.

56.

Statutory clearance procedures to enable realisation of the development opportunities are
currently underway, including uplifting of three parking designations.

57.

The Auckland Airport noise and height designations provide some particular constraints
which may influence building heights and residential unit designs for the parts of the project
area influenced by these overlays.

58.

Some covenants, leases and easements also apply in the central area which will further
influence the timing of site rationalisation.
Market dynamics and demand

59.

The project area is a significant commercial and service centre, with a concentration of
industrial activities in the southwest, health care activities in the south and emerging
apartment developments largely around the fringes of the centre. Housing stock is
dominated by large-household detached dwellings, although demand in the area is shifting
to larger terrace housing or smaller apartments due to increasing house prices, shortage of
developable residential land, and strengthening student and worker population base.
Currently, there are six apartment projects active within and around the area, which will
create 404 mostly studio units by 2017. Two of these, Lakewood Court and Lakewood
Plaza, are located within the project area, creating a total of 82 studio and 151 2-bedroom
apartments. Future demand through to 2043 is expected to be around 1500 new dwellings
within the project area, 500 within the centre. The table below summarises the population
and dwelling counts in 2013 and 2043 for the centre and the scope area as:

60.

Manukau Centre

Project Area

Current population (2013)

621

5,865

Current dwellings

285

1734

Forecast population (2043)

2344

9548

Forecast dwellings

772

3316

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Two of the key strategies, outlined later in this report involve improving the competitive and
complementary position of the central area in the housing market by catalysing housing
through a repositioning strategy and a people oriented design and delivery strategy.
Manukau, in order to achieve its aspirations will requires a housing market shift from the
traditional family dwelling on a free standing site to promoting more urban living options.
Panuku can lead the market by delivering and encouraging new apartment type
developments in the centre by leveraging recent transport investments, proximity to
amenities such as parks and supermarkets to deliver attractive, intensive living options with
a range of price points, sizes and demographics. Related to these two key strategies will be
initiatives to introduce this higher density residential living into the central area by using
existing under-utilised sites such as at grade car parks.

62.

The market context for Manukau indicates significant market challenges to delivering
successful apartment development initiatives. Apartment typologies are by their nature
costly and higher risk and this creates financial feasibility challenges. The Implementation
Plan, which includes development realisation and value creation, will need to address this
critical market dynamic and the manner in which Panuku seeks to enable residential
apartment delivery in Manukau. This will include managing the risk exposure to both Panuku
and private sector delivery partners. We will need to assess where Panuku can most
effectively act within the continuum between developable reality and the intended
aspirational outcomes of the plan.

63.

The commercial market in Manukau is strong, supported by an industrial base and growing
residential, worker and student demand. The vacancy rates on retail and office space will
remain low due to limited supply and the strong pull factor of Manukau’s strategic location.
Demand for investment in this market is expected to increase due to current favourable
business conditions – declining yields, increasing values, low interest rates and low vacancy
rates; and growing demand due to future developments. The key sectors for commercial
activities that could be integrated into the central area are core retail, medical services,
creative services and ICT, real estate and construction services.

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61.

Development realisation approach
64.

The development realisation approach will articulate the approach to the delivery on the key
strategies through the use of Council property and the roles of Panuku and its development
partners in the process.

65.

The development realisation will be developed through the framework planning and
implementation phases of Transform Manukau and will comprise the following:
 Outcomes to be delivered from realisation activity consistent with the HLPP and
Framework Plan
 Roles of parties – Panuku, private sector etc.
 High-level programme
 A financial investment with leverage strategy to address the challenging market
dynamics and the managed risk approach to enabling the delivery of the outcomes
 Articulation of the wider benefits of realisation and subsequent development activity
undertaken by the market.

66.

While more details are to follow in terms of the realisation strategy the following are some
early staging and site specific moves: The development will start with a “focus on the heart”, being the central area of Manukau
The consequential initial development opportunities in the centre are along the “Davies
Avenue amenity axis” focussed initially on the following sites: -

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a. 2 and 8 Davies Avenue (Ronwood car park) – This combined 4200sqm site, once
approved by Auckland Transport for use and the parking designation lifted, represent a
key residential opportunity to initiate perception changing and exemplar development
opposite Hayman Park and the planning destination playground to deliver a radically
different urban living option for Manukau.
b. 14 Davies Avenue – This large 10,000sqm site, has a wide range of opportunities that
will be explored and refined during the framework planning phase
c. Hayman Park – This is a critical amenity site that requires upgrading to make it
attractive and safe – progress from the currently planned stage 1 playground to add
additional amenity to add value to development sites fronting the park.
d. 31-33 Manukau Station Road - this is 7000sqm of land adjacent to the planned new
bus station and is cleared for sale. The site could provide an early mover as a mixed
use, transit oriented development through a market process.
e. Section 1 & 6 Manukau Station Road– this is 18,000sqm of land which lies on the
corner of Davies and Manukau Station Road, is vacant and cleared for sale.
f.

50 Manukau Station Road – this 9,700sqm site is cleared for sale.

g. 20 Barrowcliffe Place – this is a 5.1ha vacant site adjacent to SH20 and the Puhinui
Stream. It is recommended that this site be developed as an exemplar and perceptionshifting project. This will forge the critical cross motorway link, and act as a catalyst to
further development along the Puhinui Stream corridor (Te Araroa national walking trail).
The site is cleared for sale and is currently going through consent for the development of
super-lots.
67.

It is noted that Panuku will deliver both commercial and non-financial strategic outcomes in
its projects, particularly within the Transform locations, such as Manukau. Panuku needs to
be adept at articulating its objectives for a given site, and why certain directions are to be
taken and will develop tools to enable both description and valuation of the proposed
activities.

68.

The concept of ‘value bridges’ is one such tool. These are simply the unpacking of the
differences in project value under one scenario as compared to another. For example, value
of a project with or without design and sustainability standards in excess of regulatory
baselines, or with or without a requirement to build adjoining public space. Such exercises
typically require relatively detailed revenue and cost data, and, as such, cannot generally be
calculated until later stages of a project

Value creation
69.

As part of the Framework Planning process the procedure to assess and report on the
creation of value arising from implementation of the Framework Plan will be established.

70.

Value creation will address the following commercial elements: a. Baseline values of existing assets, or some other appropriate measure and an
assessment of future increases in value at key project milestones.
b. Estimates of developed project values for the Council assets that will be the subject of
realisation and development by the private sector through the market process.
c. Consideration will be given to reporting on value creation in the context of other service
assets held by Council that will benefit from the activities of Panuku.

71.

Reporting on commercial value creation will identify the nexus between the actions of
Panuku and the value implications and also seek to isolate value affects from broader issues
such as general market movements.

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72.

In addition to the above, the project will also seek to report on wider value creation
associated with economic and social factors such as employment creation, housing choice,
community safety, wellbeing etc. This element will be further detailed and assessed as part
of the Framework Planning and implementation stages of Transform Manukau and in
collaboration with Crown entities to ensure a minimum cross over and overlap with their core
service business and social programmes.
Commercial Value Creation

73.

A desktop assessment of the baseline existing rating assessment land values has been
undertaken for the 10 properties with immediate and near term potential and have an
estimated conservative value of $100m. This value has a wide value range and is
conservative as it assessed from 2013 and is prior to value creation and the transformation
process. This is scheduled in attachment C.

74.

The subsequent framework and implementation planning will establish the opportunities
these properties and the others potentially offer in contributing to the implementation of the
key strategies and initiatives for Manukau. This will establish the basis for the submission of
detailed business cases to the Panuku Board and Auckland Development Committee as
necessary in the future.
Non - financial Value Creation

75.

The framework planning phase will establish a number of key indicators and a baseline for
these indicators that will enable the broader benefits of Transform Manukau to be monitored
and reported on at key milestones of the project.

Consideration
Stakeholder views and engagement approach
76.

Panuku is committed to ensuring a place-led approach to engagement in Manukau. We are
working collaboratively with Central Government and Local Boards, making sure that ŌtaraPapatoetoe and Manurewa members are inclusively engaged where appropriate. An
effective relationship with Maori is a cornerstone for this project. In addition to the
established monthly forum we are now rolling out a localised work programme, including
regular workshops, site visits, individual meetings and design sessions specifically for
Manukau. Lastly we are forming essential relationships with community stakeholders.

77.

A number of baseline engagement tools/activities have been set up for the Manukau project,
including a cross Council Engagement Working Group, Monthly Project Meetings with Local
Board members and Ward Councillors. We are working with Ōtara-Papatoetoe Local Board
to agree a Terms of Reference Agreement that sets out, at a high-level, how we will work
together. A Place-Led Stakeholder Engagement & Communications Plan is being
developed and we are exploring the idea of setting up a “Town Team” with the Local Board.

Local Board views and implications
78.

Panuku has engaged early and communicated regularly with the Ōtara-Papatoetoe Local
Board during the priority location selection process and the preparation of the HLPP, which
was work-shopped with the Local Board in February. Feedback was supportive of the work
to date and is appreciative of the fact that the substantial issues have been identified early
on.

79.

The approach towards local board engagement on this project is collaborative and includes
a close relationship between Panuku, Ōtara-Papatoetoe and Manurewa Local Boards.

80.

Collaboration of the kind Panuku is aiming for will require a close partnership between the
public, private and community sectors across key platforms to achieve an integrated
strategy. To this end a number of base-line engagement measures are already in place
between Panuku and the Local Boards to ensure a close working relationship develops in
the critical early stages of the planning phase.

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81.

The Ōtara-Papatoetoe and Manurewa Local Boards strongly support Manukau for
regenerative urban renewal within the Panuku work programme and more broadly as a
Spatial Priority Area.

82.

Other issues that Panuku will consider in conjunction with the Boards are: effective
redevelopment of Hayman Park, facilitating a streamlined advocacy path regarding Te Papa,
ensuring there is an element of affordable housing in the mix, consideration of a quality
athletic park and generally pedestrian friendly quality urban built form.

83.

Of particular significance to the Boards is that green open space, sufficient for the needs of
future residents, workforce and visitors are given adequate consideration during the
framework planning phase.

Māori impact statement
84.

Whatungarongaro te tangata, toitū te whenua. Panuku is a steward and developer of land on
behalf of the Auckland Council and the population of Tāmaki Makaurau. Tāmaki Makaurau
mana whenua are the indigenous Māori population and acknowledged kaitiaki of the land.
Panuku acknowledges through the principles of Te Tiriti o Waitangi and the importance of
land to Māori, that our particular relationship with these 19 iwi is therefore one of partnership
in management and development of this essential element.

85.

Within this context, in October 2016 the Panuku Board committed to a collaborative
partnership approach to relationships with the mana whenua, mataawaka and urban Māori
of Tāmaki Makaurau. Through deepening these relationships Panuku has the potential to
materially uplift our contribution to Māori outcomes across social, cultural and economic
wellbeing.
Local Context

86.

There are 11 iwi authorities with mana whenua interests in the broader Ōtara-Papatoetoe
Local Board area.

87.

Panuku has been engaging with mana whenua through our regular monthly Forum
throughout development of the Panuku work programme; early conversations on the
Transform Manukau project have been part of this work.

88.

More detailed conversations about planning for development at Manukau have been had
through a site tour on 24 February, and follow up early planning session on 15 March.

89.

Through these meetings we have begun gathering information on interests and aspirations
to carry through into the Framework Planning phase of the project. Early notes are covered
at high level in the HLPP and referenced in full in attachment A

90.

We are now working with mana whenua to shape up a structured work programme to
coordinate mana whenua interests and input into the framework planning phase. The
following activities are anticipated to be undertaken during the framework planning phase for
Transform Manukau:

91.

Work in partnership with mana whenua kaitiaki officers towards best care for land and
people in our development planning and implementation at Manukau. This work is
understood to enable protection of waahi tapu and the optimum health of the mauri (life
force) of the natural environment.

92.

Environmental management recommendations will be incorporated into development
planning.

93.

Application of the Te Aranga Design Principles in collaboration with mana whenua to capture
and express broader interests through the built form and place-making and place-activation
activities as the project develops.

94.

Cultural Values Assessments if appropriate/requested.

95.

Exploration of development partnership opportunities.

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96.

We will engage with the local Māori population within the scope of our collaborative
community engagement processes.

Implementation
Next steps towards implementation
Framework planning
97.

The described vision, outcomes, principles and strategies will drive the framework planning,
engagement and implementation phases following the approval of the HLPP. It is through
these phases that the details of each key move, site realisation and related initiatives will be
defined and the implementation approach confirmed.

98.

The detail around the framework planning process is set out in the HLPP (attachment A).
The Manukau Framework Plan is to be delivered mid-2016; it will function as the nonstatutory guiding document for Manukau that details the delivery of the HLPP outcomes over
a 20 year period.
Engagement and communications planning

99.

A detailed engagement and communications planning process and resulting programme will
be informed by the process and information generated through the framework planning
phase

100. The project has the following estimated milestones relating to the key phases:
Transform Project Phase

Tasks

Estimated
timing

Framework Plan ; Panuku Board, ADC
and Local Board Workshops

Progress and prepare The Manukau
Framework Plan documents
components for review and input

May 2016

Framework Plan: Final draft for
approvals

Complete full suite of information, text
and diagrams to final draft stage

July 2016

Engagement Plan: Monthly project
update meetings with the ŌtaraPapatoetoe and Manurewa Local Boards

Meetings, workshops,
communications

From April and
ongoing

Engagement Plan: Engagement Terms
of Reference agreed with the Local
Boards

Meeting

May-June
(TBC)

Engagement Plan: Communications and
Engagement Plan developed for the
Execution Phase

Prepare text and image documents

May onwards

Engagement Plan: Panuku Board
approval of Framework Plan

Finalise documents

July 2016

Implementation plan: Programme
development

Execution process

September
2016

Implementation Plan: Project
feasibilities/ costings

Site by site

April 2017

Implementation Plan: Project go to
market documents

Includes reference designs, guiding
documents and investment
memorandum

June / July
2017

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Estimated approvals programme
Approval

Authority

Estimated timing

HLPP report and recommendations

Panuku Board

30 March

HLPP report and recommendations

ADC

14 April

Budget approval as part of 2016/2017 Annual Plan

F&P

13 May

Completion and adoption of Framework Plan

Panuku Board

July/August 2016

Completion of Implementation Plan

Panuku

July/August 2016

Completion of Engagement and Comms Plan

Panuku

July/August 2016

Engagement with Crown

Panuku /Crown

Ongoing through 2016

Attachments
No.

Title

Page

A

Draft High Level Project Plan: Transform Manukau
Note: this attachment has been prepared as a detailed summary of
Panuku’s plans. This information will be reformatted into a booklet
with images and graphics to assist with communications and
engagement with local communities.

23

B

Transform Project Area, landholdings of Council and Crown Entities

59

C

Schedule key of properties in transform area

61

Signatories
Author

Richard Davison – Senior Project Planning Leader – Panuku Development
Auckland

Authorisers

Allan McGregor – Manager Strategic Planning – Panuku Development Auckland
David Rankin – Director Strategy & Engagement – Panuku Development Auckland
Jim Quinn - Chief of Strategy

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