Wakatu Quay
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The Kaikōura District Council recently concluded the Special Consultation Procedure on the provision of borrowing $800,000 approving that it be included in the 2024-2034 Long term plan for the development of Wakatu Quay.
The public consultation took place throughout August and resulted in 230 submissions from the community. The submissions were presented to councillors at the public hearing on 13th September. 84% of the submissions were in favour of borrowing the $800,000. 4% in favour of option 2 – to not borrow and the project to stop with site clean up and road repair funded by KDC and 12% in favour of option 3 – to not borrow the money, leaving the site as is and upgrade the road with rate payer funding from KDC.
The key messages agreed by the Councillors from the submissions were summarised as follows:
• There was overwhelming support to make provision to borrow the money in the LTP 2024-34 and for a staged development.
• It is important that environmental concerns are carefully considered as part of the design stage.
• Additional concerns were expressed around natural hazards, cost overruns and competing with businesses along West end.
The Council will continue to work with MBIE to deliver the project on behalf of the community. The project team are continuing to focus on delivering the staged approach which includes attracting tenants and commencing design on the first building. Community comments included in the submissions are assisting to inform this work.
Kaikōura District Council would like to thank all those in the community who took the time to make a submission.
Background to the project
Situated on a prime wharf location in Kaikōura and once occupied by commercial fishing buildings, Wakatu Quay has magnificent uninterrupted views of the sea and Kaikōura’s impressive mountains.
In 2020, Kaikōura District Council successfully secured $9.88m from the Kānoa – RDU’s Provincial Growth Fund to help develop this premium location. Since securing the funding it has been benefiting from enabling works to prime the Quay area for development.
It is anticipated that Wakatu Quay will provide tenancy opportunities including hospitality, tourism/activity operator, community gathering points and event space, areas to play/fish/walk and education/cultural facilities that will complement existing businesses in Kaikōura.
It will be accessible to all and celebrate the best the region has to offer. The development will include landscaping and plantings appropriate for the environment along with necessary upgrades to roading and carparking.
The Wakatu Quay development will have a positive impact on the community by providing a visitor draw and community space that can be enjoyed by visitors and residents alike, as well as providing local employment opportunities.
Progress to Date
2020 -Demolition and clearance of the old commercial fishing buildings
2021 -Designs- Warren & Mahoney appointed project architects and concept designs developed.
2022 – Resource Consent applications Submitted- A comprehensive resource consent application for the full development of six buildings was submitted to ECAN and KDC in August 2022. External planning consultants RMG acted for KDC to ensure impartiality.
2022 - Infrastructure Enabling Works
· Water infrastructure: upgraded to accommodate Wakatu Quay Development
2023 – Infrastructure Enabling Works
· Heritage NZ grants Archaeological Authority
· Power Supply: Installation of new electrical transformer to upgrade power supply to the new development. Undergrounding of power lines and removal of some power poles to clear lines of sight to the mountains.
· Sea wall repairs: The historical sea walls were built over 100 years ago and have stood strong against everything mother nature has thrown at it. With the wharf currently an empty pristine site, it was an opportune time to undertake significant maintenance and repairs costing close to $400k to ensure the sea walls remain robust and sturdy for another 100 years. The repairs are funded by the PGF grant. These include:
· Patch repairs of cracks, ensuring they are sealed to prevent deterioration of the internal structure.
· Reinforcing face and corners of sea walls that are showing greatest deterioration with new concrete facing
· Just outside the wharf the sea is undermining the footing of the walls. Contractors have cleared gravel to bedrock to reinforce the foundations and have installed a drainage channel.
2023 Resource Consents granted – Resource Consents were granted by ECAN and KDC.
ECAN Consents granted March 2023
To discharge sediment laden stormwater into land and the Coastal Marine Area (CRC230469)
To discharge stormwater to the Coastal Marine Area (CRC230470)
To reconstruct and repair a structure on the foreshore and seabed, to erect and place a structure on the foreshore and seabed, to disturb the foreshore and seabed, to deposit material on the foreshore (CRC230471)
To use land to erect structures in Coastal Hazard Zone 1 (CRC230472)
KDC Consent granted August 2023
Resource consent is required under the Kaikōura District Plan for a Restricted Discretionary Activity for Wakatu Quay Development project activity.
Notice of Decision and Conditions (Application Number LU-2023-1906-00)
2023 Council approves provision for borrowing for Wakatu Quay in next Long Term Plan September 27 2023 Council Minutes
Next Steps
· Ongoing engagement with potential investors and tenants
· Staged approach Detailed design process
· Procurement of Contractors
· Construction stage for infrastructure
· Construction stage for building(s)
· Construction stage for landscaping and public areas
· Project completion
Media
17/01/2020 $10.98 million of Provincial Growth Funding Announced for Kaikōura
07/08/2020 Kaikōura Marine Development Programme begins with a blessing
28/09/2020 Project Lead appointed for Kaikōura Marine Development Programme
03/12/2020 Wakatu Quay opens to the public in time for summer season
12/07/2021 Architects approved for Wakatu Quay development
06/10/2021 Concept design for $20M Wakatu Quay Development
22/03/2022 Cooper Developments selected as potential investor for Wakatu Quay
Kaikōura District - Moving Forwards
Since first conceiving the Wakatu Quay project in 2019 there have been many positive developments for Kaikōura which make it an attractive investment location. Kaikōura is moving forwards – it is planning for growth and is on a strong footing for the future. When the vision for Wakatu Quay was first conceived there were many unknowns that are now known. Kaikōura is brimming with potential.
We have come through the worst of Covid-19 in good shape. Our township is welcoming international tourists and we are seeing visitor numbers close to pre-covid levels.
Other projects that were in the conceptual stages when the Wakatu Quay Project was conceived have also taken significant steps forwards.
New Link Pathway 2023
In 2021 Kaikōura District Council was successfully awarded $1.9m from the Tourism Infrastructure Fund to develop a Link Pathway. The pathway will stretch from the town’s West End along the Esplanade to Point Kean Seal Colony, leading walkers and wheelers to the opening of Wakatu Quay. The new Link Pathway will connect key points of interest along the foreshore and showcase the incredible natural environment of Kaikōura and encourage visitors and residents to swap short car journeys along the Esplanade for a pleasant stroll for all. Construction of the pathway will begin in mid 2023.
South Bay Harbour Redevelopment Business Case
Also a business case for the redevelopment of South Bay Harbour has been presented to Government. Following a successful application to the Provincial Growth Fund (Kānoa) for $1m, the Kaikōura Marine Development Programme (KDMP) was established to investigate the potential development of a Marina and Harbour that would overcome the issues of the current harbour and help maximise its future potential. The completed business case was presented to Government and Kaikōura District Council are now seeking funding to conduct further feasibility studies to inform development of designs.
Luxury Sudima Hotel Opened
Tourism in Kaikōura has also taken a step forward with the recent opening of a luxury 4.5 star Sudima Hotel on the Esplanade. The hotel is located at the mid-point between the town and Wakatu Quay- a short stroll along the new Link Pathway for those staying at the new Sudima Hotel.
Finally, Vicarage Views, a new sub-division on the north side of the town enabled by $7.8m funding for council infrastructure by Kāinga Ora received its resource consent approval in May 2023.
Kaikōura Marine Development Project
The Kaikōura Marine Development Governance Group was put in place to oversee and manage the project in line with requirements from the Ministry of Business, Innovation, and Employment (MBIE) who administer the Provincial Growth Fund (PGF).
Members of the group are:
Danny Smith | Chair |
Craig Mackle | Mayor, Kaikōura District Council |
Kevin Heays | Councillor, Kaikōura District Council |
Chevy Allen | General Manager, Te Rūnanga o Kaikōura |
Rawiri Manawatu | General Manager, Te Rūnanga o Kaikōura Ltd |
Neroli Gold | Board Member |
Joe van Rooyen | Board Member |
Lynette Buurman | Board Member |
Gerald Nolan | Board Member |
Warren Gilbertson | Principal Regional Advisor, Kanoa Regional Economic Development Unit, MBIE |
The Project Lead is Chris Sturgeon and the Project Manager is Wendy Walker.
For more information on the project contact wakatuquay@kaikoura.govt.nz
Are you planning a community consultation about Wakatu Quay?
Yes, elected members voted for a consultation at the 31 May Council Meeting with regard to the inclusion of a financial commitment to the project in the Long Term Plan (LTP) for 2024-2034. Final details will be approved at the next meeting on 26 July, and subject to approval will launch in August 2023.
What are you consulting on?
We are consulting on whether Kaikōura District Council should borrow $800k to unlock the remaining $7.3m grant funding from Kānoa PGF to develop Wakatu Quay and include that financial commitment in the Long Term Plan for 2024-2034.
Will the $800,000 be paid for through Rates?
No, the intention has always been that this project is not a financial burden on ratepayers. The money will be raised from a loan which Council can obtain at far more favourable interest rates than commercial investors (5.66%). The intention is that repayments on the $800,000 will come from the rental return of the first building. Any subsequent buildings will provide additional return.
What happens if KDC does not commit to the $800,000?
KDC will not receive the remaining $7.3m from Kānoa and rate payers will need to pay an estimated $1.2m if we are to clean up the site and undertake the required road repairs onsite.
Is the project still seeking external investors?
Yes, the project team continues to field enquiries and work with interested investors. This could happen alongside any financial commitment from KDC. In parallel, KDC has confirmed its commitment to the Wakatu Quay project to continue a staged development approach. This is subject to confirmation of inclusion of a funding commitment in the Long Term Plan for 2024-34.
Isn’t this creating another shopping area in competition with West End?
Wakatu Quay will not have retail outlets in competition with businesses at West End. The development will create a new tourism and community attraction alongside the Link Pathway. It will create attractive public spaces for our community. We believe it will attract visitors who may not have stayed before and encourage visitors to stay longer and benefit all businesses in Kaikōura.
Are you changing the roads at Wakatu Quay?
A one-way, single lane road at Wakatu Quay to Lower Ward Street is planned, but it is unrelated to the development at Wakatu Quay. This was approved by Council in 2022 and is due to a historical issue were a private boundary extends into the existing roadway and the landowner has requested that it is corrected. This will be required irrespective of whether the development goes ahead or not, but is currently proposed to be funded by the project.