Council aims to strengthen Nelson’s links to the ocean and grow the city’s standing as a centre for marine industries and activities. We see the Nelson Marina’s development as an important next step on the way to achieving this goal.

The Marina is in a central location, linking city to sea and providing recreational boating access to the waters of Tasman Bay and Marlborough Sounds. Marina berths are in high demand with up to a four year waiting list for berths up to 14 metres and a longer wait for those over 14 metres. But more needs to be done to realise the potential of this city asset and to meet existing and future demand. The recently adopted Nelson Marina Masterplan sets out the medium-term vision to transform the Marina into a modern, world-class facility for both boaties and the community to enjoy.

Council plans to invest $60 million to implement the Masterplan over the next 10 years. This will greatly enhance this valuable asset and destination for the whole community and provide modern facilities to meet the changing needs of boat owners, commercial operators, marine contractors and sea sport participants. Council embarked on a journey to transform the marina in 2021 when it took over active management of the facility. We then in 2023 established a Management Council Controlled Organisation (Management CCO) to manage the Nelson Marina on behalf of Council. Now it is time to give the CCO the tools it needs to take the Marina into its next phase, where it can, in effect, operate as a social enterprise, maximising benefits to users and the wider community.

Council wants to continue the Marina’s transformation and set it up in a way to best deliver the Masterplan. Our proposal is to move to an Asset-Owning Council Controlled Organisation (Asset-Owning CCO) by 1 July 2025 to provide a better structure which will help navigate its development into a thriving, community-accessible Marina. When considering the Council’s proposal and other options below, it’s important to know that the Marina’s operations are self-funded (from a closed account) and do not draw on rates – and none of the options involve changes to this system.

The Asset-Owning CCO would operate much like a social enterprise – enabling a sound commercial approach and more business-like manner, while factoring broader community values into decision-making and reinvesting commercial returns to achieve social outcomes including the implementation of the Masterplan.

Council would maintain 100% ownership of the Asset-Owning CCO and have oversight through standard CCO monitoring practices (such as statements of expectation and intent). The Council’s Marina assets (land and buildings) and liabilities (debt) would be transferred to the Asset-Owning CCO – at 1 July 2025 the ‘book value’ of the total assets is projected to be $29.6 million, with debt of $18 million.

Read more about the Marina in background information in the panel to the right on this page.

No change

This option would maintain business as usual, with Marina staff reporting to both Council and to the Marina’s Management CCO Board. Reporting to two different organisations is confusing and inefficient and causes delays in responding to the changing needs of berth holders and other stakeholders. Another disadvantage is this approach doesn’t make the best use of the specialist skills of a highly qualified Board of Directors.

There would be no impact on rates.

Under this model, loans taken out to develop the Marina would continue to be treated as Council’s own debt, and this could increase by $67.8 million over the next 10 years. The increased debt would cost approximately $25.8 million (e.g., in additional loan serving costs) over the same time period and be funded by the Marina’s closed account.

Asset-Owning Council Controlled Organisation (Council’s proposal)

Council would transfer both the Marina’s assets and liabilities to an Asset-Owning Council Controlled Organisation (Asset-Owning CCO), and this organisation would be solely responsible for overseeing and managing the Marina. Council would continue to have 100% ownership of the CCO.

The Asset-Owning CCO would strike a good balance between more efficient decision-making processes and providing assets and services for the public. Any increased commercial returns from Marina activities could be reinvested in improvements to the Marina or given back to Council to fund other services.

An Asset-Owning CCO would have a longer-term commercial focus and make more use of the specialised management and governance expertise of the CCO Board. Its streamlined decision-making process would make it easier to identify and respond to new opportunities. The Asset-Owning CCO would have greater financial flexibility, including investment approaches, be able to set fees, and be able to borrow money from other financial institutions.

On the other hand, an Asset-Owning CCO would have to pay 28% tax on any profits made. Fees would need to factor in this cost as well as the need to pay for the planned improvements to the Marina. Some members of the community may have concerns about this model, due to reduced public accountability, or they may worry that this change will make it easier for these assets to be sold in future.

It would cost approximately $35,000 to change over to the Asset-Owning CCO model.

There would be no impact on rates.

Council’s balance sheet debt levels would reduce by $18 million when transferring the Marina loan with the assets, and future loans to invest in the Marina would not be directly counted as Council’s debt (although it would be taken into account when assessing Council’s credit rating).

Asset Owning Council Controlled Trading Organisation

Moving to an Asset-Owning Council Controlled Trading Organisation (CCTO) to oversee and manage the Marina would involve Council transferring both the assets and liabilities in the same way as for Option 2. Council would have 100% ownership of the CCTO. The main difference would be the CCTO’s primary role would be to make a profit.

This model would have many of the same advantages and disadvantages as Option 2. The main difference from Option 2 would be a stronger focus on projects which increase the income generated by the Marina and returning this to the Council, and less focus on the projects in the Masterplan which are valued by the community but are less profitable. This approach may result in changes in service levels or reduced public access to the Marina.

As for Option 2 there would also be an extra cost of approximately $35,000 to change over to the new CCTO model.

There would be no impact on rates.

As with Option 2, Council’s balance sheet debt levels would reduce by $18 million when transferring the Marina loan with the assets, and future loans to invest in the Marina investment would not be directly counted as Council’s debt (although it would be taken into account when assessing Council’s credit rating).