Change of plan, so city's offices up for rent

North Shore's cost-trimming in the lead-up to the Super City means this space, with spectacular views, will be leased out. Photo / Dean Purcell

Ocean and city views from the top floor of North Shore's new civic building are the best in town. You look down on Takapuna Beach, get an eyeful of Rangitoto Island, and turn your head for the Sky Tower, the Harbour Bridge and the Waitakere Ranges.

It would make fine executive offices for the Super City's leaders.

But that won't happen.

The whole floor - and part of the one below - is to be sublet by North Shore City Council, which has a contract to lease the four-level annexe just built by the landlord of its civic building. The 1400sq m space could bring in $700,000 a year in rent for the council and its successor from November 1, the Auckland Council.

"It's a great space for professional offices to benefit from the location and it has views to die for," said council group property manager Glenn Harris.

The building was finished a month ago and the wall knocked out between it and the block at No 1 The Strand, where the council has been based since six North Shore local bodies were merged in 1989.

Staff have been spread over three Takapuna buildings and in 2005 the plan was hatched to bring 700 of them together in one central location.

A 12-year lease, with rights for two more three-year renewals, was signed with the owners of the existing building, Ian Wills and Andrew Holliday, who went ahead with the $20 million project to build the 4000sq m annexe.

But in June, after the council provided $4 million for the fitout of the annex and refurbishment of the existing building, the Auckland Transition Agency raised questions during a review of the council's long-term budget plan.

Talks resulted in an agreement by council chief executive John Brockies and chief financial officer Dale Lott to scale back the work.

"Changing the design has released more office space for subleasing," said Mr Harris."We were looking at subleasing the fourth floor but now we are hoping to do that with some of level 3 as well."

Staff finish moving into the civic building this weekend.

"We will deliver the fitout and refurbishment for less than half of the $4 million because it's been really trimmed back extensively," said Mr Harris. "The aim has been to provide a good level of accommodation for staff and high level of customer service, but also to provide a functional building should Auckland Council choose to use it in the future. But if it does not, then the building would lend itself to sublease for the balance of the lease."

Cost-trimming means that the 15 councillors miss out on having their working area refurbished.

Takapuna Residents' Association spokesman Gavin Fletcher welcomed the reduced spending on offices.

"Ratepayers have been concerned about this project and the need for all the staff in the first place."