Kāpiti Coast District Council agreed at an additional meeting not to proceed with the Te Uruhi project due to significant cost escalation. Council also resolved to explore alternative ways to achieve the project objectives.
In 2020, the estimated construction cost of the Te Uruhi facility was $4.4million.
By May 2022, following more detailed design and price increases in the construction market, the estimated cost had risen to $7.8million.
The 2023 estimate with construction costs still rising, now stands at $8.4million. Combined with related increases in projected operating costs, Council agrees the project is unaffordable at this time.
Kāpiti Coast District Mayor Janet Holborow acknowledges the project has been the subject of a high level of public interest.
“In context of the current cost-of-living crisis and what’s happening across the country in terms of climate change, we need to consider what’s most important to us at this time,” says Mayor Holborow.
“Council remains committed to achieving the project objectives, including working with our iwi partners to acknowledge the significance of the site, celebrate our rich cultural history, improve biosecurity practices for Kāpiti Island and promote our district as a tourist destination.
“We recognise the deep connections our iwi partners have with the Te Uruhi location and the inherited responsibility they feel to care for the area. Council will continue working with mana whenua to help achieve their aspirations of restoring the visibility of their connections to the area.
“We have also heard from our community about the need for them to be more involved in the development of any future project,” says Mayor Holborow.
Mayor Holborow identified other opportunities for achieving project objectives, including cultural expression at Maclean Park, working with iwi closely during planning for the new community centre and Waikanae Library, and working with the Department of Conservation and the KÄpiti Island tour operator to improve biosecurity practices.
To date, $1.55million has been spent on the Te Uruhi project. Of this, $557,000 came from the Government’s COVID response and recovery fund and $1million from Council’s budget. The funding was spent on upgrading the Tikotu Stream, design and professional fees, and consenting and project management costs.
The Kāpiti Economic Development Kotahitanga Board fully endorsed the Gateway Centre as a cornerstone project in the Kāpiti Economic Development Strategy and Implementation Plan back in early 2021, and Kāpiti Coast District Councillors voted seven to four to proceed with the Gateway Centre in March 2021.
An independent review of the facility’s draft proposal was carried out by business consultants Price Waterhouse Coopers. The objective of the review was to challenge the proposal and ensure it was thorough and robust. The review concluded that a gateway facility would promote and enhance Kāpiti Island as a tourist activity, provide a focus for the Kāpiti district as a tourist destination, and promote other attractions and activities in the region. PwC recommended Council should support and agree in-principle to fund and build the facility.
Council was then set to enter a contract with the Government to accept the funding for 50 per cent of the estimated $4.46 million project cost from its COVID-19 Response and Recovery Fund.
Subject to the detailed design process and the necessary resource consents being obtained, construction was slated to start as early as July 2021 with an expected completion date of June 2022.
