Artist impression of the new 14-storey development, including 200 public car parks, a four-star hotel and office space. Photo / Ignite Architects
A multimillion-dollar development - which will include a hotel, office space and hundreds of car parks - is planned for the site of Tauranga's failed CBD transport hub.
The new owners plan to turn the site of the abandoned Harington St transport hub into a 14-storey development, including200 public car parks and a four-star hotel.
Tauranga City Council decided to abandon construction of the original 550-car park building in June 2020 following expert advice there were serious structural issues.
In March this year, the council decided not to demolish the building and sold the site for $1 to developers Waibop (Harrington) Limited, a subsidiary of the lead project contractor and builder, Watts & Hughes Construction Group Holdings Limited.
The agreement meant the new owners would take over responsibility for the property and existing structure and provide at least 200 public car parking spaces if it was to build new.
The seven storeys above would include office space and a four-star hotel, he said.
The company was talking with four different hoteliers, he said, but would not confirm who they were.
The idea of including a conference centre had also been mooted, he said.
The project was going through the resource consent process and the building consents for stages 1 and 2 - which included the carpark redesign and strengthening - were also under way.
Watts estimated at least 150 people would be employed through the stages of construction with the hotel expecting to bring new jobs to the region.
Construction was set to start early next year.
Bayleys Real Estate Auckland commercial agent Wayne Keene, who is marketing the sale, said the development would be great for Tauranga.
"It's going to bring a lot of people to town. The CBD location will bring a lot of opportunities to Tauranga. It's got to be a good thing.
"It's probably way overdue having a really good hotel with an international feel."
Bayleys Commercial Tauranga sales manager Mark Walton said the development would have a positive impact on the town centre.
"It will complement the four to five other key developments under way or in the pipeline, which we believe will be the catalyst to turn Tauranga back into a thriving CBD as more people live, work and play in the CBD."
Walton said there had been solid initial interest from local occupiers and national tenants from outside the region looking to establish a presence in the growing city.
"Tauranga has a real shortage of quality CBD office space in the current market and we are working with a number of office tenants around options to cater for their growth requirements."
Commission chairwoman Anne Tolley welcomed the planned development.
"A development of this scale confirms growing commercial confidence in the future of the city centre and the planned hotel will add significantly to the depth and quality of Tauranga's accommodation offerings.
"In conjunction with other developments under way or planned and the exciting potential of the adjacent civic precinct redevelopment, this clearly signals a renaissance which will transform the CBD and ensure that it remains a vibrant and thriving heart of our fast-growing city."
Tauranga Chamber of Commerce chief executive Matt Cowley said with an expected opening of late 2023, it was great news that plans for the site were progressing.
"By late 2023, the business community hopes that Covid-19 related restrictions on tourism is far less than what it is now.
"Any additional car parking that is available to CBD workers will be appreciated as there are plenty of big developments in the pipeline that will bring more people into the city centre."
Timeline
2015
Council approves proposal to build a carpark building on a site it owns in Harington St. There was no business case or overall procurement plan for the project.
2016 The council seeks tenders.
March 2017 An architect and structural engineers are contracted.
July 2017 Council staff present four design options to elected members. Council approves Option 3, which had two basement levels and nine levels above ground. Estimated cost: $31.6m.
August 2017 Council revokes that decision and approves Option 1, which had two basement levels and seven levels above ground. Estimated cost: $27.1m.
June 2018 Construction begins.
September 2018 Elected members ask council staff to consider alternative uses for the site. Council seeks advice on the costs of terminating the main contract and is advised against it.
June 2020 Council decides to abandon construction after expert engineering advice informed them of serious seismic design issues with the building. Cost to date: $19m.
March 2021 The council decided not to demolish the building and sold the site to the lead contractor for $1.
November 2021 New owners Watts & Hughes apply for resource consent for a 14-storey development including 359 car parks.