While there is strong support for Invercargill City Council to increase its investment into the CBD block in the city, a property manager says the council is not being truthful with its residents.
Invercargill City Council received 79 submissions as part of its consultation on a proposal to invest a further $7.5million in the development and provide a $22.5million short-term loan for the project. It has to date already invested $46million.
The council has also proposed investing an extra $13.3million in its streetscape upgrades, aiming to create more vibrancy and connection between Don, Kelvin and Esk Sts.
A report from council policy adviser Hayden Powell was presented yesterday during an extraordinary performance, policy and partnerships committee meeting. It stated 74.7% of submissions were in support of further investment into the CBD block, while only 48.1% were in favour of putting more money into the city’s streets.
Three people spoke on behalf of their submissions.
Among them was Gaire Thompson, who owns a significant amount of commercial property in Invercargill and has been a vocal opponent of the development.
In 2019, Mr Thompson filed a High Court injunction to halt the demolition of the CBD, but it was dismissed.
In his submission, Mr Thompson said the figures presented by the council did not stack up and it had purposely kept its shareholding during the development at less than 50%, despite being the major financier. It did not meet the requirements of a council-controlled company, with full disclosure and audit.
"I don’t think that council should have actually been involved in the first place because it’s a ... commercial development and should be left to the private sector to undertake and I don’t think the ratepayers have been given the true picture of the situation."
He said the development was quite expensive when compared with other similar projects across the country.
Mr Thompson feared it would have a similar outcome to a town like Lower Hutt, which invested in a big mall and then its CBD emptied out.
"If council had done more homework in these malls, they would realise this one is a very expensive one.
"You’ve got to be careful it doesn’t suck the lifeblood out of the rest of the town ... There is no good ... [having] just one hub and then the rest of the town looking deserted."
The majority of submitters in support of the investment had a “get it done" or “finish it and finish it properly” attitude.
Invercargill public art gallery chairman Dave Kennedy believed the city block would help bring more visitors to He Waka Tuia, the temporary museum and art gallery situated on the edge of the development.
Bluff man Noel Peterson asked the council to better engage with its community concerning the project’s design.
Councillors will make a decision about the investment at a performance, policy and partnerships committee meeting on Tuesday.
