While the council was recently celebrating the “on schedule” opening of the Town Hall next year, thirteen years after it was closed, ratepayers might be asking: What exactly have we paid for?
A staggering $660 million has been poured into Civic Square, with over $400 million just to earthquake-strengthen the Town Hall – a barely used venue.
The result? A financial disaster fuelled by mismanagement, misinformation, rushed decision-making and political vanity.
In 2013, the year before it was closed, the Town Hall hosted the lowest number of all the Wellington Venues events and generated revenues of less than $3m. Despite apparently having the” best concert hall acoustics in the world”, the NZSO only performed 3 of its 14 Wellington concerts there in 2012.
A total cost for the Town Hall and related projects of over $440m on top of the $220m earthquake strengthening and renovation of the library. And while the current Council would like to shift the blame to their predecessors, more than $300m of the $660m total was approved in the last two years.
The reckless spending began in 2019. The first attempt to strengthen the building had already failed due to poor ground conditions, but putting good money after bad, the council pushed ahead anyway. Only one contractor was willing to take on the job – on a time and materials basis meaning the council took all the financial risk. Unbelievably, there were no plans – it took an independent review in 2023 to point out, somewhat obviously, “it is necessary to agree … what a completed Town Hall will look like”. This included where and how “front of house facilities”, essentially toilets and ticket booths, would be housed and who would pay for them.
Despite noting in its 2022 Annual Report that more funding was required for its largest project, councillors ignored the issue and let the council team put through 60-80 variation orders a month. Not surprisingly, cost spiralled. By October 2023, councillors were given just three weeks to approve an additional $107 to $146m.
Councillors were swayed by grand, but unachievable, plans. A “vibrant and innovative” National Music Centre promised to utilize space within Civic Square. Despite a “gold plated” Town Hall design and $8.5.m being spent on office space to accommodate it, plans for the National Music Centre have vanished. A private developer who would magically build the front facilities has not eventuated; “front of house” will be built by the council for $28m. Undoubtedly, the most expensive toilets in the country.
Councillors also agreed to adopt a “Town Hall First” focus. A decision that led to another flurry of reckless spending. A hasty demolition of the Municipal Office Building, a $8m cost, forcing the council to sign a 25-year lease on premises on Jervois Quay with a $51m fit out and capitalized lease costs of $80 and $100m. Plus $26.5m to fix the leaky basement and the demolition of the City to Sea bridge for $30m. All apparently required for the Town Hall to open.
A total cost for the Town Hall and related projects of over $440m on top of the $220m earthquake strengthening and renovation of the library. And while the current Council would like to shift the blame to their predecessors, more than $300m of the $660m total was approved in the last two years.
And what has the city got in return for $660m? A functional library and a new, old Town Hall with facilities which are now duplicated elsewhere. But with $660m more debt, ratepayers should be asking, is it actually worth it?
Aotearoadcone! Have traffic management companies been rorting the system?