Auckland Downtown Carpark sale likely to proceed without $28m bike and scooter hub, Hobson flyover demolition

The sale of the Downtown Carpark building is like to proceed this month. Photo / Martin Sykes

The sale of Auckland Council’s Downtown Carpark building looks set to proceed this month minus plans for a $28 million hub to park bikes and scooters.

The Herald also understands plans to remove the Hobson St flyover and build a bus interchange in the vicinity of the parking building could also be scrapped.

A paper to close the deal to sell the 1944-space carparking building to Precinct Properties was pulled from last month’s governing body meeting to get more information about the cost and benefits of the micro-mobility hub, removal of the flyover, and bus interchange.

It also follows a petition opposing the sale and lobbying by high-profile property developer Andrew Krukziener for an alternative proposal he believes would keep most of the public parking and make more money for ratepayers.

The Downtown Carpark in Auckland has nearly 2000 spaces. Photo / Dean Purcell

A senior council source said a decision has technically been made to sell the carpark building to Precinct Properties and it would undermine the council’s reputation with the development sector to pull out now.

In “good faith” the deal should proceed when it comes back to the council’s governing body on October 26, the source said.

But while the sale has a good chance of getting over the line, the strategic transport outcomes approved by the council in mid-2021 after it decided to sell the city’s biggest public carpark are now deemed too costly for questionable benefits.

The cost of buying an entire floor in a planned new building on the site of the carpark and fitting it out for bikes and scooters with toilets and showers is budgeted at $28m. Removing the Hobson St flyover and building a bus interchange is believed to have a similar price tag.

The Toko Puia car park in Takapuna which opened in late 2020 included 56 parks for pedal bikes and 28 charging stations for e-bikes, repair stations, toilets CCTV. When the Herald visited the carpark last week, there were only two bicycles in the bike park.

When the Herald visited the Toko Puia carpark in Takapuna last week, just two bicycles were using the bike park.

No one could explain a business case for acquiring an entire floor in a new building and fitting out a 3000sq m micro-mobility hub at a cost of $28m, said the source, saying many office buildings in the central city provide facilities for staff to bring bikes and scooters to work.

Final approval of the sale of the building to Precinct Properties has its opponents on the council, including Waitemata and Gulf councillor Mike Lee and transport and infrastructure committee chairman John Watson.

A petition by an Auckland woman, Sheryl Gartner, to stop the sale and demolition of the Downtown Carpark building has collected 8290 signatures.

Gartner presented the petition to councillors last month, saying Aucklanders rely on it for convenience to the downtown area and reasonably-priced parking, a view shared by the Waiheke Local Board.

A petition by Sheryl Gartner to stop the sale of the carpark has 8290 signatures.

Krukziener, who owns several buildings in the central city and is a secretary of the Save Queen St Society that challenged the council over the pedestrianisaiton of Queen St, said there is an alternative way forward that benefits the council, Precinct Properties, and the city.

“Losing public car parking from Auckland city is a total disaster because it entirely destroys the bottom end of town,” said Krukziener, saying the previous left-leaning council view that stopping people driving into the city would get people out of cars and using bikes, scooters, and public transport is “totally idiotic”.

“They will simply get in their car and drive somewhere else where parking is available,” he said.

Krukziener said the solution is “blindingly simple” - sell the air rights to build above the existing Downtown Carpark for $50m, build a skeleton around the carpark building while dealing with some seismic issues all at once, and keep most or lease some of the car parks to the developer.

He believed this would allow the council to keep a seismically strengthened carpark building and be worth $173m or $223m to ratepayers, depending on how many car parks the council keeps.

Krukziener claimed the current deal on the table from Precinct would see the council losing the car park building and netting $122m after deductions for demolishing the carpark and buying out leasehold interests for hundreds of car parks.

If the council went ahead with other obligations, like demolishing the Hobson St flyover and the bus interchange, the council would net just $47m, he said.

“With Auckland growing, those car parks will be needed more and more over time,” Krukziener said.

The carpark, which was built in 1970 and stands on a 0.645ha site one block back from the waterfront, has a land value of around $115m.

Waitemata and Gulf councillor Mike Lee said removing nearly 2000 car parks will badly impact downtown Auckland. Photo / Michael Craig

Lee said the removal of nearly 2000 public car parks will badly impact downtown and Queen St still trying to recover from the impacts of the council and Auckland Transport’s forever construction, and a serious crime wave.

“Imagine what would happen to Westfield Newmarket, St Lukes, and Sylvia Park if their lavish, free parking was removed?” he said.

Watson said the public has a right to know what is going on, saying the Downtown Carpark is a huge asset for people coming into the city.

Asked if Precinct Properties had any plans for public car parking if the deal goes ahead, deputy chief executive George Crawford said the company is restricted by confidentiality agreements from sharing its plans at this stage.

“At this stage, we are focused on working through negotiations with Eke Panuku (the council’s development arm),” Crawford said.

Bernard Orsman is an Auckland-based reporter who has been covering local government and transport since 1998. He joined the Herald in 1990 and worked in the parliamentary press gallery for six years.