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The new Court Theatre in central Christchurch will now cost $56m to build instead of $36m.
The cost to build Christchurch’s new Court Theatre has skyrocketed by 55% to $56 million – with the city council pouring another $16m into the project.
The key regeneration project was expected to cost $36m, with the Christchurch City Council providing $30m, but a cost blow-out was confirmed on Thursday.
The council is now contributing $46m towards the project – a 53% increase. The Court Theatre is fundraising to cover the remaining $10m.
In a statement the council said tender prices for construction came in significantly higher than the original budget.
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When asked where the money was coming from, the council said it was borrowing the money.
The decision to increase funding was made by the council with the public excluded at two separate meetings, one earlier this year when $4m was approved and an additional $12m was approved on August 11, when the tender prices came back higher than the original budget.
Those reports are still not available to the public, but will be released once the build contract is finalised, a council spokesperson said.
Mayor Phil Mauger said the cost increase was not unexpected because the budget for the project was set well before the Covid-19 pandemic and the war in Ukraine, which have disrupted supply chains and pushed up commodity prices and construction costs.
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Building will start before the end of the year.
“Across the country, and the world, all major construction projects are experiencing cost escalations,” he said.”
Councillors were warned earlier this year to expect “significant cost escalations”.
Mauger said the new theatre would be an asset to the central city and its supporters’ spending would boost the local economy.
“We see this spend as essential to giving Christchurch the Performing Arts Precinct [what] it deserves, and as a timely investment in the central city. The Court Theatre has been in business for more than 50 years, with a proven track record as a sustainable, forward-looking business.”
The three-storey theatre, on the corner of Gloucester and Colombo streets, will include a 360-seat main auditorium and a 130-seat studio theatre, an education studio and multipurpose spaces.
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Earthworks have already started at the theatre site on the corner of Gloucester and Colombo streets.
Hawkins has been awarded the contract to build the theatre and planned to start work before the end of the year.
It was expected to open in 2024.
Court Theatre chief executive Barbara George said the theatre always had a fundraising goal of $10m, because it also needed to fund the fit out.
About $7m would be spent on the build and $3m on the fit out.
It had already raised $6.2m via donations from individuals, grants and event.
George said the theatre had a comprehensive fundraising plan in place and she was confident of reaching the $10m target.
Creating a new home for The Court Theatre was a fascinating journey, she said.
“We can’t wait to welcome all of Christchurch to join us when we open in 2024.”
The Crown has provided the land and $3m under the terms of the global settlement agreement with the council.
The theatre has been operating in a converted warehouse in Addington since the 2011 Canterbury earthquakes damaged its Arts Centre home.
