State cash boost for city rebuild
Invercargill’s inner-city block development has been granted $10 million by the Government as a post-pandemic kick-start cash injection.
Finance Minister Grant Robertson and Infrastructure Minister Shane Jones said Invercargill City Ltd had been granted the money from the Infrastructure Reference Group (IRG), which would create about 350 jobs.
Earlier this year, the Government established the IRG to work with local councils and businesses to identify shovel-ready projects to support the economy during the Covid-19 rebuild.
The Invercargill City Council recently agreed to invest an extra $16m to cover a shortfall in funding, taking its total expenditure on the project to $46m.
However, council chief executive Clare Hadley said it was unclear if the Government’s $10m meant the council only needed to cover $6m.
Hadley wanted certainty as to what the Government intended with the $10m investment. ‘‘I need to see some paperwork,’’ she said.
Hadley also needed to speak with the development stakeholders, as she was not sure who the money was going to. The Government’s investment was fantastic nonetheless, she said.
Invercargill Central director Scott O’Donnell said the money meant more equity for the project.
The ministers’ announcement said Southland was expected to receive $90m of the $3 billion Covid Response and Recovery Fund, with further details in the coming weeks.
The inner-city development would give new life to Invercargill’s CBD, which posed a considerable seismic risk, had low levels of foot traffic, struggled to retain businesses and lacked the soul and presence expected of a modern CBD, information put out by the ministers said.
Otago was granted about $260m and the West Coast would also receive $90m.
The projects would create immediate economic activity in the metropolitan centres as well as the regions, Jones said.
‘‘The specific projects we’re announcing today are examples of the sort of projects we’re supporting – from nationwide investments in flood protection and better digital connectivity to civic facilities that we know form the bedrock of our communities.’’