Public consultation commences today following the Invercargill City Council’s [ICC] proposal to increase the CBD redevelopment fund to $46million — an increase of $16million.
The consultation document Extra Money for City Block was approved by councillors at a Committee of Council meeting held via Zoom yesterday.
Members of the public would have from now until Friday, June 12 to have their say on whether or not ICC should increase its investment into Invercargill Central Limited.
Council’s preferred option was to invest the $46million, which comprised the original $20million investment, $5million for contingency and repurposing $5million set aside for design, as well as a further $16million to cover the funding shortfall.
Option two proposes council does not invest additional funding and keeps the investment at $25million.
Option three proposes the additional $5million identified for design changes be repurposed as a contribution of additional investment, making the total investment $30million.
Initially, Invercargill City Council’s Invercargill City Property Limited, HWR Property Ltd, part of the H W Richardson Group Ltd and Geoff Thomson — each would contribute $25million to support the first three stages of the six-stage development. Thomson walked away from the project last November, leaving a shortfall.
In a report presented at yesterday’s meeting, ICC strategy and policy manager Rhiannon Suter said the developer indicated the project was unlikely to proceed with the level of funding in option two or three.
Invercargill Mayor Sir Tim Shadbolt said council was honouring its commitment to ratepayers that any further investment would be consulted on before decisions were made.
"We have been advised that this further investment would not have a direct impact on rates thanks to the low cost of borrowing," Sir Tim said.
ICC interim group manager for finance services Dave Foster said council had applied for the Government’s Shovel Ready Fund, which included a $30million grant and $55million to underwrite loans.
If the funding was approved, the $16million shortfall would be met.
Submissions could be made online, or filled out at Invercargill City Council, Bluff Service Centre, or the Civic Administration Building.
