The proposed events centre that is part of the Oruku Landing project in Whangārei, which has received $60 million from the Government's Covid Response and Recovery Fund. Image / HB Architecture
The Government is putting $60 million into a planned $93m conference and events centre in Whangārei that will kick start a $220m development on the city's waterfront.
It was announced today that $60m is being given to the Prosper Northland Trust (PNT) from the Covid Response and Recovery Fund to build the $93.7m Oruku Landing conference and events centre on Riverside Dr. The funding will be overseen by Crown Infrastructure Partners (CIP).
The plan has been backed by Northland's political leaders and will form part of the wider $220m Oruku Landing development on the 12,460sq m site, which will also later see a four-star hotel and apartments built. That development, which was expected to cost another $119m and already had international hotel chain Accor signed up, is being promoted by the Northland Development Corporation.
Initially PNT will receive the funding, and it will then set up a community trust to run the project.
However, for the plan to proceed it will need another roughly $30m from ratepayers, with Whangārei District Council (WDC) asked to front up with $17.6m to pay for the infrastructure needed such as roading, stormwater and wastewater networks, and Northland Regional Council (NRC) has been asked for $14m to help fit it out once completed.
That funding has yet to be guaranteed. However, WDC has already set aside $10m in its Long Term Plan for a conference centre in the city.
Ian Reeves, from PNT, said Oruku Landing conference and events centre would be an exciting addition to the city and the catalyst to bringing many visitors to Whangārei.
Reeves said it would be targeting the domestic conference and events scene rather than overseas conferences, which meant it would be in operation regardless of when international travel resumed.
The project is expected to create up to 250 jobs during the construction phase and 58 fulltime jobs once open. AS well as a conference and events centre it will have a public plaza, a public ferry/water taxi terminal with an electric ferry, a wide boardwalk the length of the river's edge and a footbridge.
It could host 1000 people standing, 750 seated or a 650-seat banquet arrangement that could also host community events, concerts, theatre, performing arts, trade shows and exhibitions, awards nights and corporate events.
Reeves said Whangārei had been crying out for a decent conference centre for decades and the city missed out on large events because there was no place suitable for them at the moment.
''Whangārei's position in the New Zealand conference market has been constrained by a range of factors. In particular, at present, Whangārei lacks a competitive venue to host attendees of medium-scale events,'' he said.
He said the projected demand for the proposed centre is to result in 18,110 additional visitor days in Whangārei in year one, rising to 32,794 in year three and 13,531 additional visitor nights in year one rising to 24,531 visitor nights in year three.
It is projected the centre will attract an additional 201 events in year one, out to 349 in year three.
Employment pathways, including apprenticeships, will be created from the project through collaboration with Northland tertiary providers.
''Once the Hundertwasser Arts Centre opens it will create an attraction that will also bring people to the city and the Oruku Landing development will complement that.''
Reeves said if the conditions applying to the WDC and NRC are not met, the offer by the Government lapses and the project will not get off the ground.
Whangārei mayor Sheryl Mai said it was a phenomenal amount of funding from the Government and great news for the district.
''It's still a long way from putting shovels in the ground, but we will be putting [the request for WDC funding] through our Long Term Plan process,'' Mai said.
''It would be for supporting the infrastructure, like roading and stormwater etc. We know Riverside Dr needs work so even if this didn't go ahead we'd still have to do some work on that road, but not as big a project [as if the conference centre goes ahead].''
She said a conference centre and associated hotel and entertainment centre would be a brilliant opportunity for the district.
''We are talking about an almost $250m overall project, and that makes it really compelling to support because it's part of the large overall picture for the city and district.''
Regional Development Minister Shane Jones said the project will provide much-needed work.
''We are already seeing in Whangārei job losses [as a result of the Covid-19 pandemic and associated lockdowns] and there is a great level of uncertainty about the future of the Marsden Pt Oil Refinery,'' Jones said.
''This will also create a pathway to work and create confidence in local firms and also keep people employed as well as creating new jobs. That's the kaupapa of the Covid Response and Recovery Fund.''
He said it was important Northland's civic leaders worked with the local commercial sector and got behind the project to ensure it went ahead.
Whangārei MP Shane Reti welcomed the funding for the development, saying the city had been in need of a large, top-quality conference centre for many years.
''Anything that brings visitors to Northland and helps pick up our hospitality, accommodation and tourism sectors, which have been particularly hard hit through Covid, has got to be welcomed,'' Reti said.
''It will bring much-needed work and conference facilities. We have missed out on so many conferences and events because there is simply nowhere large enough for them in Whangārei.''
He encouraged WDC and NRC to back the plan, which he said will complement the Hundertwasser Arts Centre well.
''We need more to get people to turn off State Highway 1 and come to Whangārei - and stay here longer.''
THE NUMBERS
Oruku Landing conference and events centre: ■ $93.7m - total cost. ■ $60m - from Government ■ $17.6 - wanted from WDC ■ $14m - wanted from NRC ■ 250 - construction jobs expected ■ 58 - fulltime jobs once opened ■ 13,531 - additional visitor nights in year one ■ 24,531 - additional visitor nights in year three