OPTION 2 · COLLINGWOOD STREET

Collingwood Street

83–99 Collingwood Street · Wakatū Hotel site

Upfront cost
$74.1M
Long-term cost
$50.4M
Build time
39 months
Approach
New build

This option builds a brand-new Community Hub, Library and Civic Space on the Wakatū Incorporation site at 83–99 Collingwood Street. The 3,954 square metre site sits between Bridge Street, Collingwood Street and St John Street. The new building would have a floor area of about 6,868 square metres.

A new building on a large, open site gives the most design freedom of the three options. There is room to shape it to fit what the community needs. It would be built to today's standards for earthquake safety, easy access, and energy use.

The land is owned by Wakatū Incorporation and is not for sale. The Council would take a long-term ground lease. It would own the building but pay rent to use the land. The lease would be guaranteed for up to 150 years. These rent payments are why the long-term cost is higher than the other options. The building would also be worth less at the end of its life because it stands on leased land. This lower end-of-life value, known as the terminal value, adds to the long-term cost too.

Both Civic House and the Elma Turner Library site could be sold. A local developer has offered about $10M* for the two sites together. It is intended that Civic House would be rebuilt to bring homes and businesses to the city centre.

Council services would keep running at Civic House and the library until the new building is ready. Building work would take about 39 months.

OPTION 2 · COLLINGWOOD STREET

Cost summary and trade-offs

Cost breakdown
Land (ground lease, no upfront purchase)*$0
Building design and construction$84.7M
Moving staff during building work$0
Sale of Civic House & Elma Turner Library–$10.6M**
Total upfront cost$74.1M
Long-term cost$50.4M

* Estimate.

*The Council would pay ongoing rent for the land to Wakatū. This rent is not in the upfront cost but is in the long-term cost. That is why the long-term cost is higher than Option 1. **Estimate.

Would the Council own the land?

No. The Council would lease the land and own the building. The lease would last for up to 150 years, longer than the life of any new building.

How long to build

39 months. Council services keep running at Civic House until the new building is ready.

What this means for your rates

About $44 a year extra in the peak year, on top of the Long Term Plan 2024–2034 budget (see “Understanding the costs” for what ‘extra’ means). This is for an average residential land value of $405,000.

Pros +
  • Brand-new building built to modern standards, with freedom to design it around community needs
  • The largest site of the three, giving the most design freedom
  • Council services keep running as normal until the new building is ready, with no staff move
  • Civic House could be sold for much-needed city-centre housing
  • On eBus routes 1 and 4, with good walking and cycling links
  • Supports the Te Ara ō Whakatū City Centre Spatial Plan
  • Brings life to an unused site in a prime central spot
  • On the edge of the ring road, so building work causes less disruption
  • Outside the flood plain
  • Close to the upgraded Bridge Street area, the Justice Precinct, NMIT, the Suter Art Gallery and Queen's Gardens
  • Shorter build time (39 months) with no disruption to Council services
Cons –
  • The Council would own the building but not the land, with ongoing rent, giving the highest long-term cost ($50.4M)
  • Nelson's civic identity would move from Trafalgar Street to a new spot in the city centre
  • Closest off-street parking is Buxton carpark (200m walk), further than Wakatū carpark is from Civic House
  • Tenants on the site would need to move before building work can start
  • 500m from the Millers Acre bus hub; people using eBus Route 2 and 3 may need to change buses