Inland Revenue to leave city CBD

The Victoria Ave-Broadway end of the city is booming.

One of Palmerston North’s biggest employers is on the move, as Inland Revenue shifts from the city centre.

The IRD’S 220 staff will switch from their home on the corner of Ashley and Ferguson streets to a state-of-the-art office development on Victoria Ave, owned by Horizons Regional Council. The Victoria Ave-broadway end of the city is booming and is home to real estate, law and accountancy businesses, and new eateries servicing the lunch-time trade.

The new building’s site is now a gravel-covered car park next to the council’s office building, but work is slated to begin on a three-storey complex in March. The building could include a cafe on the ground floor. The work is out for tender and is expected to be finished in October 2019, when IRD will move in. An IRD spokesman said the department’s lease at its Ashley St office expires then. It’s worked in that building since 1989.

The new Victoria Ave building is part of Horizons’ property portfolio, which, under incorporated company MWRC Holdings, includes a share of Centreport in Wellington and an office property on North St. The 100 per cent council-owned subsidiary was picked by IRD to provide its Palmerston North office space, after the department publicly advertised for proposals earlier this year.

Horizons and MWRC Holdings’ chairman Bruce Gordon said the new building would be the first one in the city to completely meet stringent new seismic performance measures. ‘‘IRD will be housed in the [upper] two floors of the three-storey complex. The holdings company will be seeking further tenants, such as a cafe for the bottom floor.’’

Gordon said it was possible the Manawatu¯ -Whanganui Civil Defence and Emergency Management Group office could lease space, but that would need to go to public consultation. The group is tasked with emergency and disaster management and prevention activities.

Gordon said it was pleasing to see a central government agency support a regional project like the new building. ‘‘Investments such as the Victoria Ave development are common practice for councils throughout New Zealand as they provide additional income revenue, helping to keep rates down for our residents.’’

MWRC Holdings made a $218,000 surplus for the year ending June 2017. This figure was about $1 million below forecast, partly because of earthquake damage Centreport suffered in November last year.

The NZ Transport Agency is also based in the Ashley St building.