Community centre put on hold

Spending $1.1 million more than expected to complete redevelopment of Palmerston North’s Papaioea Place council flats is likely to be approved by the city council today.

The total project involves demolition of 48 of the oldest units in the city and replacing them with 78 new, eco-friendly homes. The initial 30 units, out of 50 planned as part of the $7.3m first stage, were completed in March. It has now been revealed it will cost nearly $6m to complete the second stage of 28 new units, up from $4.85m in the council’s budget. But the council’s finance and performance committee was not prepared to consider, at this stage, adding yet another $800,000 or more to the project to include a community centre, or more units, or a mixture of both.

Committee chairwoman Susan Baty said she was disappointed the earlier budget estimates were so far out.

But in light of the need, with more than 300 people on the council’s waiting list for housing, she was prepared to support the extra spending. So did retiring councillor Jim Jefferies but he also sounded a warning that with a projected $789m of capital projects in the 10-year-plan, the council could not afford to keep on approving such significant extra costs. ‘‘This is a really worthy project but in a context that cannot continue.’’

Property manager Bryce Hosking said the original estimate for the second stage of the project of $4.85m was only a ‘‘place holder’’ in the budget.

The inflation related to construction cost rises generally, to stormwater and electrical improvements. He said the council’s decision to move on with the second stage of building in March would provide some efficiencies by keeping the same contractors on site, able to move directly from one part of the project to the next.

But his request for an extra $800,000 to build a community centre and garden for the complex, or even more for an extra batch of units, was put off.

Mayor Grant Smith said he would favour development of a communal heart for the housing complex, along with six more units than originally planned.

‘‘We have to push on. And with 78 units already in a tighter, more dense space, we need to give these people a sense of community. A centre creates a sense of belonging.’’

Councillor Lorna Johnson said she could see no alternative to carrying on and absorbing the extra costs. The council is expected to consult the public about extending the scope of the development alongside next year’s draft annual budget.

‘‘We need to give these people a sense of community.’’ Mayor Grant Smith