Waka Kotahi to break contract with The Showgrounds developer

Monday, 25 September 2023

The country’s transport agency has started the process of breaking its contract with the developer of The Showgrounds over delays to renewal work on a nearby culvert, saying the second stage of the development has been delayed.

An email sent to stakeholders, which has been shared with The Timaru Herald, by Waka Kotahi NZ Transport Agency confirms it has started that process.

As part of work on The Showgrounds site, developer Redwood Group was required to replace an existing culvert that runs under State Highway 1/Evans St, an area recognised by the Timaru District Council’s stormwater management plan as “arguably the highest flood risk area’’ in the town.

The Taitarakihi Creek box culvert work formed part of the permanent intersection works at The Showgrounds, and was required as part of the developers’ resource consent, which was meant to be completed by March 2024.

However, that now looks unlikely with the developer, Tony Gapes, telling The Timaru Herald last week they were “not required to do any further works to the highway until we build stage two”, aside from any repair work that could be necessary.

“At that time we will do the culverts and put in an extra slip lane that will lead directly into The Showgrounds centre,’’ he said.

Waka Kotahi NZ Transport Agency South Canterbury senior network manager Scott McKenzie said the agency was “currently working through these issues” with the developer.

However, the email from the agency to stakeholders said: “It has now commenced the process of breaking the legal contract agreement between ourselves and Redwood Group in regards to the SH1 culvert renewal.”

The email said the agency had a contract arrangement with Redwood Group to deliver (build) the culvert on its behalf, as the developer needed to extend its length to accommodate a proposed left-turn lane into the development’s access road.

The email also cited the significant conditions of a resource consent issued by the Timaru District Council for the development, “one of which is to upgrade the SH1 intersection”. To date the intersection had been partly constructed.

“The culvert renewal has to be completed before the last stage of the intersection build can occur.’’

However, “very recently’’ Redwood Group had issued a notice advising it intended to delay the construction of stage two of the development, the email said.

“Unfortunately, this has implications for the completion of the intersection final build, and in turn, it appears they have not progressed the culvert renewal as expected.’’

The email said once the process of breaking the legal contract was complete, it would be able to commence procurement of the culvert “built in our own right, but several further months of delay is now inevitable’’.

McKenzie said culvert works were likely to start this construction season.

“The developer has signalled they plan to hold off on the construction of stage two of The Showgrounds at this time. We are currently working through these issues with them.

“Waka Kotahi has been in contact with the developer and discussions are continuing.’’

He said the agency aimed to progress the culvert upgrade in the interim, ready for the intersection construction.

“The resource conditions are required to be met via the Land Use Consent for the development by the applicant. This is monitored and enforced by the regulatory authority. Maintenance and monitoring of the temporary intersection will continue.’’

He said traffic congestion always occurred at peak travel times to some extent at signalised intersections.

“This is managed by the traffic signal phasing.’’

However, he said “as previously communicated by Waka Kotahi, customers, stakeholders and road users in Timaru need to be aware there will be no further relief coming at this intersection given the corridor constraints’’.

“Congestion may increase as further development occurs along the SH1 corridor into the future.’’

He said roads and the intersection layout at The Showgrounds would alter slightly once the final stage build of the intersection was completed, “but this will not eliminate peak period congestion’’.

Ongoing concerns around completion of work at the intersection to The Showgrounds were also raised at the council’s infrastructure committee meeting on September 5.

Councillor Allan Booth asked whether there was a date for the Evans St resealing, and said it was his understanding that Waka Kotahi was not going to complete resealing of the stretch that ran alongside The Showgrounds until the developer had done work on a culvert there.

“That potentially is a major issue,” Booth said.

“We are actually depending/waiting for the developer to do that job … and I understand that … under the current circumstances, that may not be happening.

“So, there’s a potential major issue there that is going to disrupt our main transport corridor unless we’ve got some powers to make things happen around the developer.”

Timaru District Council group manager for infrastructure Andrew Dixon replied that he had seen some correspondence between the two parties, Waka Kotahi and the developer, which was “basically reviewing an agreement”.

“And realising that it is probably not going to happen as quick as they would like it to, and they’re [Waka Kotahi] taking the lead of actually doing that project themselves,” he said.

Originally, the land use consent conditions stated stage one of The Showgrounds development could not open until developer, Redwood Group, had completed construction of an intersection at Grants Rd and SH1/Evans St.

However, a request to change the conditions of the consent was rubber-stamped by the Timaru District Council last December – paving the way for the first stage of the retail complex to open before the access intersection had been completed.