Dunedin Mayor Aaron Hawkins says a new ACC building planned for central Dunedin will deliver a significant boost to the heart of the city.

Aaron Hawkins. Photo: supplied

Mr Hawkins says the deal  - announced today - between the Accident Compensation Corporation and Ngāi Tahu Property to develop the new multi-storey building on the Dowling St car park site will deliver major economic benefits. 

“This is an exciting development for the city, and the Exchange area in particular. It will create jobs across the construction sector, it’s being procured sustainably and locally where possible, and it helps secure a long-term headquarters for ACC staff in Dunedin.

“We expect the design will complement surrounding buildings, improve the street-level environment for pedestrians and inject more life and vibrancy into the area.” 

He said as part of the deal, the Dunedin City Council had agreed to sell the car park to Ngāi Tahu Property for $3 million. 

DCC Chief Executive Sandy Graham said while the development would result in the loss of some car parks, the site had been earmarked for sale for some time.

Ngāi Tahu is entering a joint venture with ACC to develop the 8000m2 building.

The building will have space for up to 650 ACC staff who are currently spread across four locations in Dunedin.

Mr Hawkins said it would be the first large-scale, high-spec office building to go up in the city in more than 20 years, and it would bring hundreds more people to the area.

He said the development also built on the long-standing relationship between the city and Ngāi Tahu.

“We’re working hard to make sure Dunedin’s urban environment better reflects the values of mana whenua, and developments like this can only help recognise the importance of Ngāi Tahu to our city.” 

Three are conditions attached to the construction because of the loss of car parks at the Dowling St site. Photo: Peter McIntosh

Conditions include that the project deliver an office block covering the entire site, built to New Zealand Green Building Council specifications, and that construction begin within three years and be completed within seven years.

The conditions were designed to ensure "the city gets the high-spec, modern office building it expects, in return for the loss of car parks on site".

The parties are on track to meet or exceed those conditions, including starting construction in 2021 and completing the new building by 2024.

A resource consent is still required for any new building on the site and it will be subject to the usual requirements.