Council spent $19 million on failed Tauranga car park complex

Thursday, 4 June 2020

The Harrington Street Carpark project has been abandoned after costing $19 million.

After spending $19 million Tauranga City Council has abandoned a car parking project to stop “good money going after bad”.

Councillors decided, in a closed meeting on Thursday, to abandon the completion of the much-troubled Harrington Street Transport Hub car park due to the cost of remedying seismic resistance design deficiencies.

“As unpalatable as it is to abandon a project which has already cost $19 million, our expert advice makes it clear that the completion options available to us would simply be sending good money after bad,” Mayor Tenby Powell said.

The said costs of strengthening the flawed building would be significant when compared to the original project budget of $29 million.

Artist impression of the finished Harrington Street Car Park complex.

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Construction of the transport hub commenced in June 2018, but in May 2019 the council was informed of a technical construction problem relating to the structure’s seismic design strength.

An engineering design review revealed the structure did not meet the required standard of seismic resistance and strengthening would be required.

“Even under the most favourable conditions, we would end up with an ‘asset’ which ratepayers and people paying parking fees would have to subsidise for years to come,” Powell said.

Council Infrastructure General Manager Nic Johansson said potential future uses of the Harington Street site will be evaluated.

“The existing structure cannot be used for purposes other than car parking, because of its sloping floors, but the basement and site could possibly contribute to a future development prospect,” he said.

He said the net cost to the community is not clear and is dependent on the recovery options for the site.

Johansson said when the decision to build the car park in 2017 was made, the council relied on the professional expertise of the building designer and peer reviewer. As such it could not have foreseen the design deficiency issues.

“The estimated costs and financial outcomes of all the completion options indicate that there is no economically feasible way of remedying the structural design flaws of the building,” Johansson said.

“Financial analysis is also very clear that the most prudent course, and the best way to limit losses for ratepayers, is to abandon completion of the building and take action to protect the interests of the community.

“We now have Council elected member support to get on with that job.”

Council says the expert reports will remain confidential.