Queens Wharf is to have the historic cargo Shed 10 upgraded which will, along with the Government's temporary "slug" structure, form a fan zone for the 2011 Rugby World Cup.
Rugby World Cup minister Murray McCully said Shed 10 would be upgraded at the Auckland Regional Council's (ARC) expense, to allow for the wharf to cater for a cruise ship terminal, fan zone, event area and "an opportunity to showcase activities".
He said money would have to be spent on Shed 10 to "make sure it doesn't fall down on anyone or visually impair the site".
ARC chairman Mike Lee said the debate is now over and building can begin.
"We have reached a pragmatic and creative solution that delivers an outstanding harbourside fan zone for the Rugby World Cup, embraces the wharf's heritage and preserves the broadest possible options and legacy for the future," Mr Lee said.
Auckland City Mayor John Banks described the decision as "sensible".
"The proposal today means that we can stand back and take a long-term view of the whole waterfront, including Queens Wharf," Mr Banks said.
Mr McCully described the decision as a compromise for both the ARC and the Government.
He said the ARC would carry all responsibility for the refurbishment of the wharf and landscaping, as per the original deal.
Mr McCully said the upgrade would be more than "cosmetic", but only the bottom level of the shed would be useable in order to keep costs down.
He said there would not be much cost difference between the plans released today and figures released by the ARC last week.
Last week the ARC released figures that showed Shed 10 and the temporary structure would cost $37.2 million for both buildings and landscaping.
Mr McCully said there had been good co-operation between the Government and acting ARC chairman Paul Walbran chief executive Peter Winder.
Asked if the controversy over the wharf reflected poorly on the Government and the council, Mr McCully said: "We went into the whole process to try and help the region out. The obligation to deliver a fanzone was the obligation of the Auckland city and Auckland region."
"The ARC changed its mind, we regret that. We can't help that and we've worked with the circumstances."
Mr Lee said the region had tackled a "complex city development".
"Aucklanders tend to debate the development of their city so passionately that it can sometimes be bewildering and indeed exasperating - especially for the rest of the country," he said.
"But the clock is ticking. The time for talking is over, now the work begins. Delivery for the Rugby World Cup can now proceed in earnest," Mr Lee said.
Although the Government had been looking at alternative sites after the ARC voted to keep one of the historic sheds, Mr McCully said no other site in central Auckland could deliver on the Government's objectives.
He said the Government would look to hold discussions with the waterfront agency to unload its half share of Queens Wharf when the Super City comes into existence on November 1.
"I don't think the controversy will go away but different people will own it," Mr McCully said.
Shed 10, 'slug' to form fan zone
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