During the week I had an email from Kelvan Smith who demonstrated that he might have retired but he still reads the Tuesday Club notes! For clarification the bits in bold are what I wrote in the Tuesday Club notes last week. Here’s what Kelvan said:
I was interested to read your “Global Settlement 101” this week. I noted a couple of areas where I thought I could add to your 101.
Kelvan Smith
I was Director of DPMC’s Greater Christchurch Group from April 2016 until April 2018. During that time, I led the Crown discussions with CCC on the Cost Share “refresh” so I know a little bit about the context to the Global Settlement discussions. I have not been involved in any post-earthquake work since I finished with DPMC.
The original cost sharing agreement (and clarification) are the base agreements between the Crown and CCC and several parts of the global settlement appear to confirm those original agreements.
Bus Exchange:
CCC will purchase the Bus Exchange for $22.9m. There are a whole lot of escape clauses as well, but this is the essence of the price. There is a 10% retention if the Crown does not complete work by 30 September 2019.
In the 2013 cost sharing agreement, the Council’s contribution to the Bus Interchange was $29.9m. The $22.9m in the Global Settlement is the Council’s contribution to the Interchange. The other $7m was spent on bus “superstops” in the suburbs. The Bus Interchange cost around $80m to build from memory. The Council’s position was always that the $22.9m would be paid to the Crown when ownership was transferred to them. This was agreed in the refresh but never actioned because the proposed Global Settlement superseded the refresh agreements.
Metro Sports Facility:
There is no mention of costs with this project, so I assume that the Crown will pick up the entire construction cost. The facility on completion will transfer to CCC and it will be maintained by the Council in future. (It is strange that one agency, Otakaro, is project managing this facility and CCC have to sit alongside without control. It’s a bit like your neighbour having control of your new house build, and you having no say)
The Council is contributing to the Metro Sports Facility. In the 2013 cost sharing agreement the CCC contribution is capped at $147m with the Crown paying the rest (up to whatever it costs). While the Crown is delivering the project through Otakaro, the Council had the right to sign off on the design, and I understand the Council did sign the design off.
Port Hills:
CCC will pay the Crown $40.5m for the Port Hills properties.
I believe this relates to clause 3 of the 2013 cost sharing agreement. This was an agreement for the Crown and the Council to share the costs 50/50 for the purchase those Port Hills properties zoned red because of the high life risk from potential rock roll/rock fall.
Margaret Mahy Playground:
CCC will purchase this site for $6.6m.
In the cost sharing agreement, there was two-part agreement relating to the Frame: the Council sold the Centennial Pool to the Crown for $6.8m and the Council agreed to “purchase” the family playground for $6.8m.
Thanks for this Kelvan and it’s good to have this clarification.
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