Wellington City Council has voted to do a review of the Golden Mile project. Photo: RNZ / Samuel Rillstone
The new Wellington City Council has voted to do a review of the contentious Golden Mile project.
Council officers are now predicting the project, which was budgeted to cost $139 million, could cost up to $220 million.
Some works have already begun on the project, but council officers said in October it was discovered that the Courtenay Place works, which are currently under negotiation, are now expected to exceed budget by $15 to $25 million dollars.
It's the second time this year a budget blowout has been reported on the project. In August a $20 million blowout was reported, but the project was brought back into budget.
Mayor Andrew Little described the review as the responsible thing to do, he said the cost of the project had got to a level where they could not proceed in good conscience as if nothing had changed.
But he said the objectives of the Golden Mile were good.
Little said asking for a review of the Golden Mile was one of his first actions as Mayor, because it was apparent Council no longer had a clear picture on the costs of the project.
The review would take three to six months, with Council officers providing an estimation of the review costing between $200,000 to $400,000.
It would include economic analysis on both the long-term impacts of the project and also in the short term across the full corridor from Lambton Quay to Courtenay Place.
"The project estimates are now several years old, the project cannot be delivered within the existing budget and the risk for ratepayers to be stuck with expensive, inflexible contracts is simply too great," he said.
"The review will provide up-to-date information, so that decisions on the future of the project are based on the most current costs and the real and likely cost to Council."
One of the concerns raised by officers was if the project was rescoped to reduce costs, it could risk losing funding from central government.
"Although the government has agreed to fund 51 percent of the project, that was based on a business case done four years ago. Meanwhile, Council is potentially on the hook for any cost escalations. That's why we need this review," Little said.
"The review does not relitigate the benefits of the Golden Mile project, and as such will maintain the project's current level of central government support."
Little said while he supports the Golden Mile in principle, he's also committed to Wellingtonians the Council under his leadership will get a much better handle on finances.
Meanwhile Deputy Mayor Ben McNaulty said the council couldn't afford the cost blow out, particularly in light of recent blow outs with the Town Hall and the Sludge Minimisation Plant.
"We can't afford it, it's just that black and white."
Councillor Rebecca Matthews said the council had far too many times pressed paused when they should have pressed fast forward.
She was concerned the review could represent the first step in terminating the project. She said she hoped she was wrong in her fears.
The vote passed with 12 in favour and 4 opposed. Those opposed were Matthews, Laurie Foon, Jonny Osborne and Geordie Rogers.
New Eastern Ward Councillor Karl Tiefenbacher. Photo: Supplied
'Council needs to create an environment where people can afford to live'
New Eastern Ward Councillor Tiefenbacher told councillors he wanted to be proud, but couldn't be until the council looked back at the end of the term and saw Wellington was a better place than it is now.
He said the council needed to create an environment where people could afford to live, businesses could thrive and there were opportunities for youth.
Fellow new Eastern Ward Councillor Sam O'Brien said many of the challenges Wellington faced were a result of choices, not chance.
He pointed to an infrastructure deficit, unaffordable rents and water challenges.
"None of this is inevitable it is the consequence of decisions to defer and deflect and hope that someone else will deal with it later."
He said the council needed to invest in public services that made people's lives better on a day-to-day basis.
Other councillors who made their maiden speeches were Matthew Reweti, Jonny Osborne, Afnan Al-Rubayee and Andrea Compton.
Councillor Ray Chung has kept his position as chairperson. Photo: RNZ / Mark Papalii
Some Councillors oppose appointment of Ray Chung as chairperson
While discussing chairperson appointments, new councillor Osborne said he, Foon, Matthews and Rogers did not support Ray Chung's appointment.
"Undermining the mana and integrity of your colleagues by spreading offensive and misogynistic rumours is not good leadership," he said.
Early this year former Mayor Tory Whanau released an email Chung sent to three fellow councillors in early 2023 recounting a story he'd been told by his neighbour about the neighbour's son allegedly having a sexual encounter with the mayor.
But Osborne said as "constructive partners" and recognising this was a decision for the mayor, the green faction would vote in favour of the paper.
The vote passed unopposed.
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