Dunedin City Council State Highway 88 realignment property purchase and construction funding

Applicant

NZ Transport Agency

To seek the Board’s approval for funding the property purchase and construction of Dunedin City Council’s State Highway 88 Realignment project.

29 April 2010

The NZ Transport Agency Board:

a. notes that the project provides national transport benefits and represents value for money, and that its timing is being advanced by the imminent construction of Dunedin’s new stadium and Otago University expansion, as explained to the Board previously in Board paper 09/08/0245;
b. notes that funding of $800,000 for enabling construction works for the project has been approved prior to this funding application;
c. notes that capping the NZTA’s share of property costs ensures that no premium will be paid for land required for the project;
d. notes that the expected construction cost has increased from a $16 million estimate at the time of design funding (Board paper 09/08/0245) to the $25 million current estimate and that part of the increase is due to the property value from stadium land owned by Dunedin City Council being left out of the applicant’s previous estimate in error;
e. approves funding for the property purchase associated with Dunedin City Council’s State Highway 88 Realignment project at an estimated cost of $11.70 million and a funding assistance rate of 65% (NZTA’s share capped at $7.61 million) from R funds, subject to, as conditions precedent;

i. Dunedin City Council providing a peer review of the economics of the project and that the peer review confirms the project’s assessment profile of HHL; and
ii. the Regional Director being satisfied that all property purchase agreements for the project have been completed;

f. approves funding for the construction of Dunedin City Council’s State Highway 88 Realignment project at an estimated cost of $11.55 million and a funding assistance rate of 65% (NZTA’s share capped at $7.51million) from R funds, subject to, as conditions precedent:

i. Dunedin City Council providing a peer review of the economics of the project and that the peer review confirms the project’s assessment profile of HHL;
ii. the Regional Director being satisfied that all consents required for a construction start have been provided; and
iii. Dunedin City Council agreeing that it will, prior to submitting any new funding applications associated with Dunedin’s strategic corridors, provide a plan that demonstrates, to the Regional Director’s satisfaction, the integration of the shared paths constructed as part of this project with the proposed strategic upgrades and existing cycling/pedestrian facilities to the south of the project;

g. notes that the expected construction cost of the project, including enabling works and property, is estimated at $25 million, the 95th percentile construction cost is estimated at $27 million and the 5th percentile at $24 million;
h. notes that the reasons for this decision are as set out in the Reasons for recommendation section and that the profile for the activity has been assessed as HHL; and
i. agrees to take Board paper 10/04/0367 out of Committee when the Regional Director has been advised that commercial agreements for property and construction have been executed or when the Board publishes the notice of decision, whichever is the later.

Bryan Jackson / Garry Moore

The assessment profile for this activity has been determined as being of High strategic fit, High effectiveness and Low economic efficiency.
The project contributes to the NZTA’s Investment and Revenue Strategy, which intends to give effect to the GPS. It provides a responsive, integrated solution to a significant land use change and will contribute to economic development and safety objectives of the Land Transport Management Act.
We confirm that the matters in sections 20(2) and 20(5) of the LTMA have been satisfied and that the matters in section 20(3) have been taken into account.

If you would like details of how the assessment profile for this activity was determined, please email us at boardsecretariat@nzta.govt.nz.