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An artist’s rendering of the new Wakatu Quay development proposed for Kaikōura.
Whether the Kaikōura District Council will borrow more than $800,000 for the Wakatu Quay development may become clearer following further public consultation in the next month.
Last Wednesday, July 26, council unanimously accepted a proposed Special Consultative Procedure to gain “feedback” from the community.
It does not mean borrowing for the contentious project has the green light, yet.
The consultation period officially began just two days later, on July 28 (last Friday), and runs until August 28.
The special consultation procedure outline including a statement of proposal for the Wakatu Quay development was presented by the Kaikōura Marine Development Programme (KDMP).
Council previously resolved on May 31 for the special consultation given the clock is ticking on its contractual obligation with MBIE to contribute $800,000 towards the Kānoa grant funding of $10.88m for the KDMP, or to renege.
If agreed, the proposed borrowing would then be included in the financials for the 2024-34 long term plan (LTP) as council did not make any financial contingency for its KDMP obligations within the current LTP.
The $10.88mm for the KDMP was originally granted via the Provincial Growth Fund, now Kānoa, for development of “a key Kaikōura location” at Wakatu Quay and preparation of a business case for the replacement of the South Bay Harbour.
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The project is meant to stimulate the local economy.
Completion of the South Bay case component has left a bulky $10.18m available for the development of council freehold land at Wakatu Quay.
In his report, Chris Sturgeon for KDMP, said of three options, the “preferred option” was to borrow the $800,000, as it would enable the release of the remaining $7.3m Kanoa grant and enable completion of the first stage of the Wakatu development.
Option one gave council a 30-year timeframe, via its local government borrowing facility for tangible infrastructure.
The other two options of not investing in infrastructure were less favourable — with more burden ultimately on the ratepayers.
“Because the $800,000 will be considered an infrastructure asset [it] would be considered eligible for a 30-year loan,” Sturgeon told the meeting.
Cr Robbie Roche asked Sturgeon if the prior public workshops on the project had provided any “highlights”.
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Sturgeon said it had been useful in gaining insights “and unique perspective” around the concept.
Of benefit was the suggestion to instigate the “frequently asked questions” publicity since rolled out in the community via the Kaikōura Star which had been “very helpful”.
Chief executive Will Doughty said it would be good to have as many elected members as possible front during the special consultation procedure period.
Sturgeon said it might seem obvious but the submissions process under the special consultation was “very easy”.
Cr Kevin Heays, in reference to the submission form to be used, said it had been highlighted at the recent council workshop that the consultation was just that.
“It is not a vote,” he said. While there might be “500 negatives and two positives” the council would ultimately make the final decision.
“Some people will consider it as a referendum — but it’s not,” Heays said.
