Corridor budget overrun explained

The redesigned section on Haupapa St. PHOTO/STEPHEN PARKER

Rotorua Lakes Council has revealed how a $45,000 budget blowout for the city's controversial Green Corridor happened.

The cost overrun was reported by the Rotorua Daily Post last week and was discussed during a meeting of the council's operations and monitoring committee today.

Strategy and partnerships group manager Jean-Paul Gaston said the council had received a complaint from a business owner along the corridor's Haupapa St route, between Tutanekai and Amohia streets, that had been backed up by other businesses.

He said there were concerns with the overall design and the potential loss of carparks that led the council to stop construction and redesign the route along the section in question at an additional cost of $72,000.

Cost savings of $27,000 made during construction brought the final cost of the project to $442,000 - $45,000 more than the original budget of $397,000.

Knox Engravers owner Graham Knox told the Rotorua Daily Post he was concerned when he realised 30 carparks along Haupapa St would be removed during the corridor's construction and made his feelings known to the council.

He said he was not the only business that would be affected.

"My main concern at the time was they were taking 30 carparks out along our street. The lab [Laboratory Services Rotorua] was not considered as they had about 200 customers a day. We moved here as part of a long-term business plan due to the parks that were there.

I had a misconception about what was going on, otherwise I would have voiced my concerns earlier.

Graham Knox

"I'm all for progress, even though I don't agree with it [the corridor] going through the centre of town."

Mr Knox said he felt Rotorua's footpaths were wide enough to accommodate all users and was still wondering why the corridor had to be constructed on already congested roads.

"It all seems a bit Mickey Mouse to me.

"Most of our retailers in town are only just making ends meet, you don't want to make things harder for these people and we should be listened to."

Rotorua property developer Ray Cook, of R&B Consultants, told the Rotorua Daily Post he also had concerns regarding the two properties he owned along that section of the corridor and questioned how the council could have spent $72,000 on the changes.

"I felt the change to the design was a good compromise. The cost was never discussed with us and furthermore I'm a bit mystified where that figure comes from, as nothing really changed except the layout.

"As a concept it's a good idea. Like everything some people do like it and some don't. You can't please everybody.

"But this was a council decision," he said.

After the meeting, Mr Gaston confirmed the $72,000 cost included the redesign, taking out the middle parking bays, removal of trees, realignment of the corridor, plus kerb and channelling work.

Councillor Karen Hunt said during the meeting the council had listened to the community.

"I do think we did the right thing and I think we responded to the community's request for us to consider an option and we listened ... with the result that has met with pretty much universal acceptance by most people I have heard from."

Green Corridor:
- Changes to original Haupapa St plan cost additional $72,000
- Savings of $27,000 were made during construction
- Final cost overrun of $45,000
- Corridor changed after complaints from Haupapa St businesses