Streets bill could hit $47m

Ratepayers may be on the hook for $13 million more than expected to upgrade the streets and slow the speed limit around Christchurch’s new Te Kaha stadium.

Construction of the contentious $34.2m project – which will widen footpaths up to 5.8 metres, lower speed limits on Lichfield, Madras, Tuam and Barbadoes streets to 10kph or 30kph, and upgrade underground pipes – was expected to start in July, in order to finish before the stadium opens in 2026.

The council expected the Government would cover 51% of the cost under transport funding arrangements. However, the NZ Transport Agency Waka Kotahi has told Christchurch City Council staff there is too much uncertainty around what transport projects central government will fund to make any promises. The entire project was now likely to go back to a vote, with Cr Sam MacDonald expecting the options to include carry on, pause or rescope.

The upgrade is meant to help the area cope with an influx of pedestrians and traffic during large events. The current design – keeping Lichfield St two-way – was endorsed in June last year. An original plan to make Lichfield St between Manchester and Madras one-way did not survive a council hearings process after prominent city developers Philip Carter and Shaun Stockman threatened to delay projects and stop investing in the city if it went ahead.

The compromise cost an extra $1.2m. Councillors were told on Wednesday that in order to complete the work in time for the stadium opening, the council would need to start construction without a guarantee of co-payment from central government.

The NZTA funding decision will be in October, staff said, and if the answer was no, then the council would be on the hook for $13m more than expected. This could impact the council’s long term plan (a 10-year spending plan), which in its draft form proposes an average rates increase of 12.4%, or $416 a year for the average ratepaying household.

The council would need to increase borrowing or not go ahead with other projects if it ended up covering the $13m.

Jacob Bradbury, the council’s manager of transport planning and delivery, told The Press if the council decided to take the risk, it would still be eligible for the 51% subsidy, but it was not guaranteed.

Cr MacDonald said councillors were first made aware of the issue on Wednesday and had sought more information.

Cr James Gough said the risk to ratepayers warranted the entire project being revisited.

Cr Sara Templeton’s preference was to push ahead with the project, but she hoped there would be an option to continue work on Lichfield St so that businesses did not have to be disrupted with roadworks twice, as the council needed to rip up the road and replace 100-year-old water pipes.

Cr Mark Peters wanted to find savings in the project and have it completed ahead of Te Kaha’s opening.

Cr Yani Johanson, who did not support the project originally, thought it was unaffordable “gold plating” for the central city.

Cr Andrei Moore said it would be embarrassing to delay the stadium opening because the streets were not sorted.

“Right now we should be writing to the Minister asking how we go about accessing one of these fast-tracked processes,” he said.

Cr Tyrone Fields said it would be “very odd indeed” for central government not to help fund the work, saying “it would be just another example of North Island thinking preventing South Island development and growth”.

Mayor Phil Mauger said a report to the council next month would look at “all the options”. “We will then make an informed decision.”