Repairs, demolition to begin on Gisborne buildings

While Gisborne has spent months rebuilding smaller properties damaged by last December's 6.8 magnitude earthquake, repair work and demolition is finally about to begin on some of the city's bigger commercial buildings.

The quake, which struck on December 20, partially collapsed buildings and left gaping holes in roadways.

A number of the more seriously damaged commercial buildings had been left to an uncertain fate while owners and insurance companies worked out whether to repair or demolish.

"We have stressed from the beginning that as you repair, you must strengthen as you go - that is not negotiable... if they demolish a building, they chose to do it," said Gisborne District Council construction consents administrator Ian Petty.

One building facing the wrecker's ball is that which houses the Gisborne Deli, on Gladstone Road.

Damage to the building was too severe to repair, said Christine Gunness, a partner in CKD Holdings which owns the building.

"Part of an upstairs wall completely collapsed... we want to demolish the building asap", she told the Gisborne Herald.

However, repair work is expected to start soon on the multimillion-dollar Marinaview Conference Centre and apartment complex which suffered structural damage.

Building consents have been issued for work on five other commercial buildings, with five more likely in the next few weeks, Mr Petty said.

Gisborne District Council introduced an Earthquake Risks Building policy in 2006, which states earthquake-prone buildings must be strengthened to two-thirds of the current building code - compared to the national norm of one-third.

Total earthquake damage costs are now estimated to be over $61 million.

The Marinaview, Gisborne Deli, and Bain & Sheppard buildings are heavy contributors to the commercial insurance claims estimate that has now topped $28 million, representing 425 claims.

Previously the figure was expected to reach $26m but this had been bumped up by loss-of-profit claims - estimated to be over $3m - and 42 extra commercial claims lodged with the New Zealand Insurance Council over the past month, said NZIC insurance manager John Lucas.

NZIC does not represent QBE, one of the larger commercial insurers in Australasia.

It is believed to be carrying at least one major claim liability for an industrial client in Gisborne.