Cup could blow out past $178m, says councillor

A politician says the $178.5 million cost for the America’s Cup is a “crude estimate” and could rise significantly.

Chris Darby, who chairs Auckland Council’s planning committee, is concerned about the cost of building the bases in Auckland, which will involve contractors working 24 hours a day.

“There is not a lot of accuracy in the costings to date. They are a very crude estimate and don’t be surprised if there are significant upsides on those costs,” he said.

The council has estimated it will cost $160.5m to build the infrastructure for eight Cup bases and superyachts, plus $18m to relocate the fishing fleet and Sealink ferry.

A resource consent application to build the bases says the work covers a large area over deep water and will require working round the clock six or seven days a week. It warns about the need to obtain price certainty for the Government and council, saying the financial risk is unlikely to be accepted by the contractor.

The council is also planning to spend $260m on projects around the waterfront for the Cup and Apec meeting of world leaders in 2021, of which about $80m is currently funded. They include new public open spaces, upgrading Quay St and ferry terminal improvements.

Darby’s concerns come as Mayor Phil Goff and Economic Development Minister David Parker continue to work on a “compromise” solution for the Cup bases.

It will be a mix of the council’s option for a cluster of bases around Wynyard Basin and Parker’s preference for a land-based solution on Wynyard Pt, or the Tank Farm.

It is understood work is still continuing on commercial negotiations with Stolthaven to move its hazardous facilities off its southern Tank Farm site to allow for more base space on land and a reduced extension of Halsey Wharf under the Wynyard Basin option.

A statement from the mayoral office said Goff and Parker were continuing to work on a variant to the Wynyard Basin and Wynyard Pt.

“The council and the Government are working well together but are yet to reach an agreement with Emirates Team New Zealand,” it said.

Neither Goff nor Parker would respond to Darby’s concerns about the cost of the project rising.

Meanwhile, Darby is miffed at not being told of plans to build two large wharves extending 100m off Wynyard Wharf for the fishing and ferry operations. The plans surfaced in the council’s resource consent application on January 30.