Briefing to Incoming Associate Minister for Greater Christchurch Regeneration - Date 2 July 2019
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Briefing to Incoming Associate
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Minister for Greater
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Christchurch Regeneration
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Credit: Christchurch City Council
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Date 2 July 2019
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Priority Routine
Security Classification In Confidence
Welcome and introduction
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Congratulations on your appointment as Associate Minister for Greater Christchurch
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Regeneration. On behalf of DPMC and our colleagues across regeneration-related
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entities, we look forward to working with you to support the regeneration of
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greater Christchurch.
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It is nearly nine years since the first earthquake struck Canterbury on
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4 September 2010, which was followed a few months later by the 22 February 2011
6.3 magnitude earthquake. As you know, these devastating events marked the
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beginning of a long journey of recovery and regeneration for the people of
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greater Christchurch.
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Almost a decade later, considerable progress has been made rebuilding the city and
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the lives of those impacted by the earthquakes. Regeneration momentum has
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accelerated in the last two years, as a number of critical projects reach or near
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completion, with critical decision points during the next year that will shape the future
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of greater Christchurch and a return to local leadership. Most notable are the
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decisions relating to the future use of land in the residential red zone, global
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settlement, and Canterbury Multi-Use Arena.
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This briefing provides you with contextual information about the regeneration of
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greater Christchurch. It outlines roles and responsibilities across the portfolio as a
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whole and specific information about key issues and decisions required in relation to
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the portfolio in the coming months. Following the delegation of specific
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responsibilities to you as Associate Minister, officials will provide further briefings
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as required.
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As the portfolio Associate Minister, in addition to the Department of the Prime Minister
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and Cabinet, you may interact with the Treasury; Ministry of Business, Innovation
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and Employment; and Land Information New Zealand. These agencies have
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contributed to this briefing. You may also interact with Ōtākaro Limited, Regenerate
Christchurch, and a range of other local and central agencies.
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We welcome the opportunity to provide more detailed papers on the matters in this
briefing, and look forward to working with you as Associate Minister for the portfolio.
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Recommendation
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The Department of the Prime Minister and Cabinet recommends that you:
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Note the contents of this briefing.
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NOTED
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Anne Shaw Hon Poto Williams
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Executive Director, Greater Associate Minister for
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Christchurch Group Greater Christchurch
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Regeneration
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Date: / /2019 Date: / /2019
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Security and
Intelligence
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Contents
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Briefing to Incoming Associate Minister for Greater Christchurch Regeneration ...... 1
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Welcome and introduction .............................................................................. 2
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Recommendation ........................................................................................... 3
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1. Overview ........................................................................................ 6
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2. Context .......................................................................................... 6
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Background ........................................................................................ 6
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Progress ............................................................................................. 7
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Looking ahead ..................................................................................... 8
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3. Roles and responsibilities in regeneration...........................................10
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The Greater Christchurch Regeneration Act 2016 ....................................10
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Ministerial responsibilities ....................................................................10
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Regeneration agencies ........................................................................10
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Greater Christchurch Group, DPMC .......................................................11
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Partners and working together .............................................................12
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4. Key areas of focus ..........................................................................12
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Transition to local leadership ................................................................13
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GCR Act regeneration planning .............................................................15
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Greater Christchurch Regeneration Act changes .....................................17
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Projects in the central city ...................................................................18
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Appendix A: Greater Christchurch Group .........................................................21
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Appendix B: Other key Ministerial responsibilities .............................................22
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Land Information New Zealand ..................................................................22
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Land management ..............................................................................22
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Greater Christchurch Group, DPMC ............................................................24
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Horizontal Infrastructure .....................................................................24
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Public Inquiry into the Earthquake Commission ......................................24
Monitoring Regeneration ......................................................................25
Insurance-related services ........................................................................26
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Greater Christchurch Claims Resolution Service ......................................26
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Other related services .........................................................................26
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Regenerate Christchurch ...........................................................................27
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Role and functions ..............................................................................27
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Role of the Minister and Christchurch City Council...................................28
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Letter of expectations 2019/20.............................................................28
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Current Regenerate Christchurch work areas .........................................29
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Ōtākaro Limited .......................................................................................30
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Role and functions ..............................................................................30
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Role of Ministers and government departments ......................................31
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Current work areas and priorities..........................................................31
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Ōtākaro Limited Anchor Projects ...........................................................32
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Appendix C: How things are funded ................................................................34
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Departmental Appropriations .....................................................................34
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Changes in out-years ...............................................................................34
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Canterbury Earthquake Recovery..........................................................34
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Land Ownership and Management ........................................................35
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Appendix D: Monitoring greater Christchurch regeneration (December 2018) ......36
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Appendix E: The Greater Christchurch Regeneration Act 2016 ............................37
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Regeneration Plans and section 71 .............................................................37
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Ministerial involvement........................................................................38
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1. Overview
This briefing sets out:
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Context for regeneration and a summary of the current key issues in the
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Greater Christchurch Regeneration portfolio;
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Overall roles and responsibilities of the portfolio; and
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Key areas of focus requiring consideration either immediately or within the
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next six months.
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2. Context
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Background
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Since the devastating earthquakes of 4 September 2010, and 22 February 2011,
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there has been significant progress towards recovery and now regeneration.
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The Canterbury Earthquake Recovery Authority (CERA) was disestablished in April
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2016. At this time, CERA’s functions were either ended or were transferred to
inheriting agencies including DPMC, Ministry of Health - psychosocial issues, Land
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Information New Zealand (LINZ) – management of Crown land including the
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residential red zone; and the Ministry of Business, Innovation and Employment
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(MBIE) – Residential Advisory Service.
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The Canterbury Earthquake Recovery Act 2011 expired in 2016 and was replaced by
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the Greater Christchurch Regeneration Act 2016 (GCR Act). The 2016 legislative
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framework supports regeneration in greater Christchurch and assumes that central
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government has a transitional role until 2021 when the majority of the GCR is
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automatically repealed.
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In March 2016, DPMC became central government’s lead agency for regeneration.
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The Greater Christchurch Group (GCG)1 was established to fulfil this role, taking
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responsibility for advising on the regeneration of greater Christchurch and monitoring
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and reporting on regeneration progress.
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Two new regeneration entities, Regenerate Christchurch and Ōtākaro Limited, were
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also created and inherited or received new functions at this time, as did a range of
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other government agencies. Further information is provided in Appendix B.
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It is more than three years since the above arrangements were put in place and we
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are now moving towards the transition back to local leadership and the Crown
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stepping back from its extraordinary role. The revocation of the Order in Council in
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The structure of and key contacts for GCG are provided in Appendix A.
6February 2019, returning district planning processes to Christchurch City Council,
was a key milestone in signalling a return to local leadership.
The Minister for Greater Christchurch Regeneration has four principles that guide the
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progression to transition:
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People – ensuring central government maintains the confidence of the people
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of Christchurch, keeping them at the centre of regeneration decisions
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promoting positive outcomes for them;
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Momentum – transition decisions ensure regeneration momentum is
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maintained and accelerated, where possible;
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Value – recognising that central government objectives in greater
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Christchurch are mixed. It is about ensuring that transition decisions meet
the social, environmental and cultural needs of the people of Christchurch
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while promoting economic growth;
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Future – leaving a strong foundation for locally led success on regeneration,
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through advancing the transition to a new-normal relationship between the
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Strong working relationships are critical to the regeneration process and transition
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towards local leadership. Strong relationships will contribute to seamless transition,
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foster ongoing, longer-term positive relationships between central and local
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government and help provide assurance to the wider community that regeneration
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momentum will continue at pace. GCG has pivotal relationships with Christchurch
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City Council, Regenerate Christchurch and Ōtākaro Limited, as well as LINZ and
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Treasury on the central government side. Other strategic partners in regeneration
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include Environment Canterbury, Selwyn and Waimakariri District Councils, and
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Te Rūnanga o Ngāi Tahu.
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Progress
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The Crown has made a huge contribution to support the recovery and regeneration
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of greater Christchurch, including investing an estimated $18 billion to make it
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stronger and more resilient than before the earthquakes.
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The central city is beginning to function more like a normal central city with major
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regeneration milestones achieved including on key anchor projects:
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Canterbury Earthquake National Memorial (Oi Manawa) – opened to the
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public in 2017;
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Turanga Christchurch Central Library – completed and opening in 2018;
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Te Pae Convention Centre - on track for opening and hosting its first event in
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October 2020;
7 Metro Sports Facility - construction now underway with completion expected
in 2021;
Canterbury Multi-Use Arena investment case nearing completion in
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mid-2019;
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East Frame completion of the first homes being constructed;
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Avon River Precinct – opening of the promenade in 2018 and the final two
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elements expected to be complete in 2019 including the North Frame
pedestrian bridge between Colombo and Manchester Streets and the Avon
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Loop development;
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Hospitality and Retail precincts – private sector led developments continue to
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expand with the Crossing (opened 2019), the Terrace (opened 2018) and
Riverside Farmers Market due to open spring 2019; and
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Christ Church Cathedral Reinstatement Project - continues to receive Crown
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support, most recently with the advancement of the $15 million suspensory
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loan, following the Crown’s initial $10 million grant.
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Looking ahead
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Minister Woods has made it clear it is her intention to be the last Minister with the
Regeneration portfolio. Whilst prioritising a return to a ‘normal’ Crown relationship
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with greater Christchurch, the current Government and Minister are firmly committed
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to first resolving any outstanding matters (section 4 provides more detail on these),
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with the end goal that greater Christchurch is well set up for a positive and
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dynamic future.
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In the next three months key decisions in the portfolio will need to be made on
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the following:
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Global settlement and future institutional arrangements: Completion of
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the global settlement negotiations with Christchurch City Council to provide
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clarity about long-term ownership of assets, funding arrangements, and roles
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and responsibilities.
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Ōtākaro Avon River Corridor residential red zone: Regenerate
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Christchurch submitted its draft Ōtākaro Avon River Corridor Regeneration
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Plan in March 2019 to the Minister who has a statutory decision-making role
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and can either approve or decline, but not amend, the draft Plan.
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9(2)(f)(iv)
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8 Canterbury Multi-Use Arena: Crown funding of $220 million for the Arena
(from the $300 million Christchurch Regeneration Acceleration Facility
(CRAF)) is dependent on its approval of the Investment Case, which is
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progressing and due with Cabinet in August 2019.
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Christ Church Cathedral: An appointments process will need to commence
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shortly to establish the Christ Church Cathedral Reinstatement Review Panel,
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which will be responsible for reviewing and providing advice on Orders in
Council made under the Christ Church Cathedral Reinstatement Act 2017 to
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enable reinstatement in an expedited manner.
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Once key decisions are made in relation to the above matters, subsequent
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implementation processes and associated decision-making will be required in a
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number of areas.
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The local government elections in October this year (and the central government
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elections in 2020), along with stakeholder and community expectations to have
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certainty on resolving outstanding regeneration matters, places huge impetus on key
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projects to be progressed over the next weeks and months. 9(2)(j)
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Other key matters include:
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Exercise of planning powers under the GCR Act: Ministerial exercise of
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power under section 71 of the GCR Act enables fast tracking of discrete
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amendments to district and regional planning documents for regeneration
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purposes. You may recall past section 71 decisions in relation to Residential
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Unit Overlay District Plan Changes, Yaldhurst Recreation and Sports Facility,
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and Redcliffs School relocation. Further proposals are expected in the next
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few months to utilise this provision prior to its expiry. Further information is
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provided in section 4 and Appendix E.
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Close out of Greater Christchurch Horizontal Infrastructure
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Programme: A final invoice was received in June 2019 for the Christchurch
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City Programme consisting of 743 projects. The rebuild and repair of damaged
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three-waters infrastructure in the Waimakariri District, the other outstanding
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part of the Programme, is nearing completion, with physical works on all
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projects expected to be complete in July 2019. Further information is provided
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in Appendix B.
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Public Inquiry into the Earthquake Commission: DPMC hosts and
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provides secretariat support to the Inquiry into EQC, led by Dame Silvia
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Cartwright. The Inquiry is required to report its findings and
recommendations by March 2020, although it is working towards a report by
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the end of 2019. Further information is provided in Appendix B.
9We look forward to engaging with you on these key areas of regeneration, particularly
those within your delegations.
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3. Roles and responsibilities in regeneration
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The Greater Christchurch Regeneration Act 2016
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The GCR Act provides the legislative framework to support regeneration in greater
Christchurch. It is based on the assumption that central government has a
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transitional role in greater Christchurch until 2021 when the majority of the GCR Act
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is automatically repealed. More information about the GCR Act, and statutory
responsibilities under it, is provided in Appendix E.
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Ministerial responsibilities
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The Minister for Greater Christchurch Regeneration is responsible for central
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government’s ongoing role in the regeneration of greater Christchurch. In particular,
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the following aspects of regeneration fall under this portfolio:
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Responsibility for exercising powers in the GCR Act, including exercising any
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remaining residual statutory functions of the Minister for Canterbury
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Earthquake Recovery;
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Monitoring ongoing regeneration in greater Christchurch;
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Managing residential red zone land;
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Overseeing the central government’s interests in, and relationship with,
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Regenerate Christchurch;
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Responsibility as a Shareholding Minister, along with the Minister of Finance
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for Ōtākaro Limited; and
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Monitoring of insurance settlements in greater Christchurch.
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Whilst the Prime Minister is the ‘Responsible Minister’ for DPMC, including GCG as a
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business unit, in practice, the Minister for Greater Christchurch Regeneration provides
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day to day oversight and is consulted on such matters. Relevant information about
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funding for the Greater Christchurch Regeneration Portfolio is provided in
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Appendix C.
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Regeneration agencies
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Following the disestablishment of CERA in 2016, a range of agencies picked up roles
in the regeneration of greater Christchurch. Four central government agencies, one
10Crown-Council organisation (Regenerate Christchurch) and a Crown company
(Ōtākaro Limited) undertake regeneration functions and report to the Minister as set
out in Diagram 1 below.
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Ōtākaro Limited reports to both the Minister for Greater Christchurch Regeneration
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and the Minister of Finance, as joint shareholders. Regenerate Christchurch reports
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to both the Minister for Greater Christchurch Regeneration and the Mayor of
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Christchurch. More detail on roles in relation to these two agencies where there is
joint ministerial responsibility is in Appendix B.
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Diagram 1: Regeneration related agencies reporting to the Minister for Greater
Christchurch Regeneration
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Greater Christchurch Group, DPMC
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DPMC, through the Greater Christchurch Group (GCG), is central government’s lead
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agency for regeneration. GCG is a small, agile unit within DPMC, based in both
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Christchurch and Wellington, and its most important task is to support the transition
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of leadership in greater Christchurch from central government to local institutions.
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GCG’s role includes:
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Leadership, coordination and brokering across central and local agencies
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involved in the regeneration of greater Christchurch – e.g. residential
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recovery, psychosocial and land matters;
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Advising on the regeneration of greater Christchurch;
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Providing second-opinion advice on policy related to regeneration;
11 Administering parts of the GCR Act;
Supporting Regenerate Christchurch in delivering its work programme;
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Monitoring Regenerate Christchurch;
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Being the policy lead for Ōtākaro Limited;
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Providing both policy and operational lessons learned from the Canterbury
experience in supporting other central and local agencies;
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Monitoring and reporting on the overall progress of regeneration; and
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Part-funding and joint governance of horizontal infrastructure repairs (largely
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completed).
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Given DPMC’s leadership role in regeneration, you can expect GCG to provide regular
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policy advice (both first and second opinion) across all matters under the
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regeneration portfolio that are discussed in section 4. Other parts of DPMC also
provide support with corporate services such as ministerial services,
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communications, legal services, and strategy and planning.
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Partners and working together
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There are positive working relationships and goodwill between all the regeneration
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partners at both governance and organisational level. The shared commitment to
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keep up the momentum of regeneration and achieve the best possible outcomes for
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greater Christchurch helps enable GCG’s delivery of its work programme and
transition planning.
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Of all the regeneration partners, the Christchurch City Council is the organisation
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GCG works most closely with and it will be impacted the greatest by the transition to
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a return to local leadership and the negotiation of a final global settlement.
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9(2)(j)
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4. Key areas of focus
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This section provides an overview of the key regeneration matters and projects that
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require consideration in the GCR portfolio. These are a mix of strategic and
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operational, statutory and non-statutory matters, including the transition to local
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leadership, planning, and projects in the central city.
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Officials look forward to the opportunity to brief you in more detail on these issues
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and initiatives in the near future, as they relate to your delegated responsibilities in
the Greater Christchurch Regeneration portfolio.
12Transition to local leadership
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Global Settlement (DPMC / Treasury) – COMMERCIALLY SENSITIVE
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Following the earthquakes in 2010 and 2011, the Crown and Christchurch City Council
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entered into a cost sharing agreement (CSA) in 2013, which set out the respective
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financial contributions of the parties to the recovery of the city.
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The CSA left open some issues – particularly timing of asset transfers and/or ultimate
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ownership of some anchor projects – that could not be resolved at the time with the
information available.
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DPMC, alongside the Treasury, has been leading negotiations with the Council on
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behalf of the Minister for Greater Christchurch Regeneration and the Minister of
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Finance. Both parties are committed to achieving an economically sustainable
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Christchurch, with its people, businesses and communities supported to thrive and
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deliver on the Council’s long-term vision for the City.
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The joint ambition for the parties is to see a demonstrable transition, moving away
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from an environment where central government continues to play an extraordinary
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role, towards a locally-led sustainable economy. This would be achieved through
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ensuring a full and final settlement to both parties’ respective rights and
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extraordinary responsibilities in Christchurch’s regeneration, with the view of
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resuming a normalised and sustainable relationship between the parties.
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The negotiations will consider the financial contributions of each party and agree the
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future ownership and operation of relevant regeneration matters.
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In early-December 2018 9(2)(j)
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. Officials from the Crown and the Council started the first
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stage of negotiations shortly thereafter. The negotiations have focused on building a
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collaborative relationship with the Council to achieve a positive global settlement that
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can be implemented and provides strong progress on regeneration. This culminated
in a high-level Agreement in Principle (AiP) that was signed by the Crown in
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May 2019.
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The AiP sets the high-level trajectory for a range of matters and provides the basis
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for the second stage of the negotiations that are now underway and are on the finer
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details that will be required to give effect to the direction set by the AiP.
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The intention is to have a global settlement finalised 9(2)(j) . The Council
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has indicated that it intends to provide the public with an opportunity to comment on
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the proposed final agreement before it is considered by the Council (expected in early
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August 2019). 9(2)(j)
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13Following these processes, it will be necessary for Cabinet to consider the proposed
agreement before the Minister of Finance and Minister for Greater Christchurch
Regeneration sign off the agreement on behalf of the Crown.
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Once a global settlement agreement is finalised, implementation will begin in earnest.
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This could be a process that takes around two years.
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Christchurch Regeneration Acceleration Facility (DPMC / Treasury)
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This government announced the $300 million CRAF in Budget 2018. The fund was
established to progress key regeneration activities in the city, as part of the broader
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work towards transitioning projects and decision making back to local leadership
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(including global settlement).
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The Council was then able to seek to apply the funding towards: the Canterbury
Multi-Use Arena (CMUA); residential red zone projects; and roading, three waters,
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and land drainage (horizontal infrastructure) projects. Accessing the funding requires
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the Council to first produce an investment proposal to enable the Minister of Finance
and Minister for Greater Christchurch Regeneration (joint Ministers) to earmark the
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funding. Once the investment proposals are approved, this provides the confidence
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for the Council to proceed with a more detailed investment case. However, Cabinet
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agreed that drawing down CRAF funding is contingent on the parties first agreeing to
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a global settlement.
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Joint Ministers have approved investment proposals for all three categories of
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projects which enabled the earmarking of $220 million for the CMUA, up to
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$40 million for residential red zone projects, and $40 million for roading projects.
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This has enabled the Council to begin preparing the more detailed investment cases
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for the projects.
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Institutional arrangements (DPMC / Treasury)
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As part of the Crown’s transition to local leadership and a new normal relationship
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with the Council, the extraordinary institutional arrangements in Christchurch will
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need to be addressed.
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Currently Regenerate Christchurch will be wound up at the expiry of the majority of
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the GCR Act in June 2021. Earlier this year the Council decided to reduce its
contribution towards Regenerate Christchurch’s costs down to $1 million a year.
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Council and the Crown are currently in the process of appointing a new Chair and
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directors to the Board.
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Ōtākaro Limited is a Crown company that is responsible for adding value to Anchor
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Projects and Crown land in a manner that balances a desire to achieve good
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commercial outcomes against the Crown’s regeneration objectives.
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9(2)(f)(iv), 9(2)(b)(ii)
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149(2)(f)(iv), 9(2)(b)(ii)
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Further information on both Regenerate Christchurch and Ōtākaro is provided in
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Appendix B.
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GCR Act regeneration planning
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As the end of the lifespan of the GCR Act gets closer, it is expected that the use of
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its extraordinary planning powers will lessen over the remaining time.
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As outlined in section 3, the Minister for Greater Christchurch Regeneration, has a
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statutory decision-making role in the regeneration planning processes under the GCR
Act. Consideration will be required on any section 71 proposals received in the future,
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and one regeneration plan, which is outlined below.
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Draft Ōtākaro Avon River Corridor (OARC) Regeneration Plan
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In March 2019, Regenerate Christchurch delivered a draft Ōtākaro Avon River
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Corridor Regeneration Plan to the Minister for Greater Christchurch Regeneration.
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The draft Plan is intended to support the regeneration of the Ōtākaro Avon River
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Corridor, providing a vision and objectives for short, medium and long-term future
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land uses and opportunities for the 602-hectare residential red zone area in the heart
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of east Christchurch, and some adjacent Christchurch City Council and Crown-owned
land. The Crown has a significant interest in this area as the majority landowner,
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having expended more than $1 billion through the Crown offer process in purchasing
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almost 5,500 properties. Final decisions on the draft Plan are still to be made.
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As a local Member of Parliament, you have previously been briefed on the Minister’s
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decision-making process. The Minister’s role in this process is to either approve or
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decline, but not amend, the draft Plan. The Minister is carefully considering the draft
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Plan in line with GCR Act requirements – for example, considering the feedback
provided by key partners and the community and how these views have been
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addressed, the public interest, and financial implications. Regenerate Christchurch
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has also prepared a proposal for Partial Revocation of the Christchurch Central
Recovery Plan for the Minister to consider.
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Minister Woods is aware of the complaint from East Lake Trust to the Ombudsman
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and is taking advice on what, if any, impact the Ombudsman’s process will have on
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her decision making. The Minister is also aware of the petition before the Governance
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and Administration Select Committee requesting the House urge her and Regenerate
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Christchurch to include the East Lake in the long-term plan for the red zone and is
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also taking advice on this.
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The draft Plan identifies potential future projects in the OARC and its focus is on
future use. Christchurch City Council has asked for $40 million from the CRAF and is
15developing an investment case for this. The Council has other funding it has set
aside for the OARC, particularly for infrastructure (such as storm water treatment,
flood mitigation, and transport works, including a major cycleway).
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Outside the scope of future use regeneration planning, the Crown expects some of
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the issues around governance, funding, implementation and ownership of the OARC
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Regeneration Area to be addressed through the global settlement. Additionally, if
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the use of GCR Act powers is needed to implement any approved regeneration plan,
there will also be limited time due to the repeal of the majority of the GCR Act in June
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2021. Officials will be working through these issues over the coming months.
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Map: Ōtākaro Avon River Corridor Regeneration Area
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Section 71 proposals
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Section 71 of the GCR Act allows the Minister to suspend, amend, or revoke planning
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documents for the greater Christchurch area. This includes Resource Management
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Act documents and a range of other plans, policies and strategies under the Local
ct
Government Act, Land Transport Act and Conservation Act without needing to use
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the required statutory processes set out under relevant legislation i.e. Resource
Management Act 1991.
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16Section 71 powers are extraordinary powers that do not apply to any other area
within New Zealand. Section 71 should not be used to avoid consideration of matters
that would be considered under standard Resource Management Act (RMA) plan
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change processes, which could produce different outcomes. There are risks in trying
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to use fast track processes if proposals are not considered properly against
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standard requirements.
er
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With the revocation of the Christchurch Replacement District Plan Order in Council,
any section 71 proposal for an amendment to the Christchurch District Plan now
eg
means that the plan change process under the RMA will be a viable alternative. This
R
is a ‘higher bar’ than previously that a section 71 proposal would need to consider in
h
the assessment of alternatives.
rc
hu
To date three section 71 processes have been completed (Residential Unit Overlay
District Plan Changes, Yaldhurst Recreation and Sports Facility, and Redcliffs School
tc
relocation).
is
hr
In April 2019, Christchurch City Council agreed to proceed with the drafting of two
C
new section 71 proposals, seeking to amend the Christchurch District Plan. The
Council has recently: er
at
Consulted with around 70 affected property owners on a possible proposal to
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amend the slope instability hazard overlay for certain properties on the Port
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Hills;
or
Consulted the community, including holding information sessions, on the
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possible proposal to amend or remove the on-site parking requirements for
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developments in the Lyttelton town centre which are inhibiting the
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regeneration of the Lyttelton town centre.
in
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We are working closely with Council officials during these processes. If the Council
decided to proceed with the proposals, we expect they will be received in the next
e
th
few months. DPMC will provide advice on Ministerial statutory decision making
when necessary.
by
You may be aware that the Canterbury Cricket Trust (CCT) would like to use
e d
section 71 of the GCR Act to amend the Christchurch District Plan to address
as
operational issues with the existing resource consent for Hagley Oval. Regenerate
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Christchurch is assessing whether the GCR Act could be used to help Hagley Oval
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host high-profile international fixtures on a regular basis. Minister Woods has not
formally been approached by Regenerate Christchurch on this matter.
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el
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Greater Christchurch Regeneration Act 9(2)(f)(iv)
ct
oa
9(2)(f)(iv)
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179(2)(f)(iv) the third annual review of the GCR Act, underway, will
identify and recommend any changes to the Act that will improve its overall operation
and effectiveness in supporting the transition to local leadership. This 2018/19 review
n
is the second stage of a two-stage review process. The first stage 2017/18 review
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was intended to be a ‘light touch’ with this second stage being more comprehensive.
at
er
Projects in the central city
en
eg
Canterbury Multi-Use Arena
R
In October 2018, the Crown earmarked $220 million of funding for the Canterbury
h
rc
Multi-Use Arena, subject to an approved investment case, from the $300 million
hu
CRAF. In addition, the Crown has spent more than $80 million to purchase the
land. Christchurch City Council has committed funding of $253 million.
tc
is
Good progress is being made on the Investment Case, which is being led by
hr
Christchurch City Council, with support from the Crown. The aim of the Investment
C
Case is to give more certainty to decision makers on the strategic, economic,
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commercial, management, and financial aspects of the project. It is not a design plan
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and no options are being ruled out at this point.
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The Investment Case was initially due with the Crown in July 2019. This timeline was
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revised to reflect the impact of 15 March events on Council staff and resources, and
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allow for a more detailed market sounding. The market sounding exercise is drawing
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feedback directly from the construction industry to identify market capacity and
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capability to deliver the Arena. It will make Investment Case cost estimates
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more robust.
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Discussions are ongoing about the appropriate level of central government
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involvement in the design and build phase of the project. Outcomes of these
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discussions will be captured in the Investment Case.
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by
Stakeholder engagement is crucial for the success of this project and as such a
Stakeholder Reference Group was established by the Minister and Mayor to provide
d
feedback on the Investment Case. This Group have meet twice to provide feedback,
e
as
which is being considered and incorporated into the Investment Case. The Group will
be engaged for a third time once the case is finalised.
le
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The Investment Case is due to go to Council later this month (July 2019) and
following approval, will be provided to Crown for a decision.
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Christ Church Cathedral Reinstatement
ct
oa
Good progress is being made on the Christ Church Cathedral reinstatement. Design
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work is underway following the appointment of key consultants to the project team.
Early stabilisation work is expected to begin on site in the first quarter of 2020, taking
12 to 18 months. The entire project is expected to take around a decade to complete.
18
*The figure $80 million (highlighted above) has subsequently been identified
as an error. The projected spend for land purchase is $57 million.The key partners in the Christ Church Cathedral Reinstatement Project are:
Christ Church Cathedral Reinstatement Trust (CCRT), a Crown appointed
Trust, which holds a governance role and is responsible for fundraising;
n
io
Anglican Diocese of Christchurch, which includes the Bishop, the Cathedral
at
Dean and Chapter and the Church Property Trustees (CPT), which legally owns
er
the Cathedral;
en
eg
Christ Church Cathedral Reinstatement Limited (CCRL), which was established
to deliver the reinstatement. It is a joint venture between CPT and CCRT.
R
h
The indicative budget for the Cathedral reinstatement project is $105 million.
rc
Funding sources include insurance compensation (approximately $42 million), Crown
hu
funding ($25 million) and Christchurch City Council funding ($10 million grant). This
leaves a shortfall of about $28 million, which will need to be fundraised. Fundraising
tc
is underway.
is
hr
The Crown has sent a clear message of its support for the reinstatement through a
C
grant of $10 million (released in June 2018), a suspensory loan of $15 million
er
(advanced in the last week of June 2019), and special legislation to facilitate
at
reinstatement in an expedited manner compared with normal statutory processes for
re
gaining consents and approvals through an Order in Council mechanism.
G
The Christ Church Cathedral Reinstatement Review Panel, yet to be appointed, will
or
be responsible for reviewing and providing advice on any Orders. The appointment
rf
process will need to commence shortly to ensure the Panel is in place when the first
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Order is proposed, expected in 2020.
is
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Metro Sports Facility
M
e
The Metro Sports Facility is a major anchor project, funded by the Crown and the
th
Christchurch City Council. The Council will own and operate the Metro Sports Facility.
by
Its contribution is limited to $147 million under cost sharing arrangements, with the
Crown funding the remainder of the facility. The Crown had already purchased the
d
land, giving the Metro Sports Facility a high-profile location on Moorhouse Avenue.
e
as
The Metro Sports Facility was originally due to open in 2016, but following a
le
$75 million cost over-run, Ōtākaro Ltd terminated the Early Contractor Involvement
re
(ECI) contract with the Leighs Cockram Joint Venture in November 2017. In April
2018, Ōtākaro completed the detailed design of the Metro Sports Facility and,
y
el
through a combination of changes to the procurement approach and to the final
iv
design, reduced the estimated cost of the project by more than $50 million. The
ct
Minister, Mayor and sporting codes were part of the process to make cost savings in
oa
the final design.
Pr
19Despite design and procurement savings, land remediation has cost about 9(2)(b)(ii)
more than anticipated due to ground conditions being worse than expected and
construction costs, which were based on 2015 prices, have continued to rise.
n
io
Just over $300 million has been committed to the delivery of the project. In April
at
2019, Ōtākaro Ltd announced awarding a $221 million contract for the construction
er
of the facility to CPB Contractors Limited. The contract is in addition to $80m allocated
en
for specialist equipment (like the pool tanks, hydroslides and water toys) as well as
for professional services and land remediation.
eg
R
Construction of the Metro Sports Facility is expected to be completed late in 2021.
Recently, on 7 June 2019, Minister Woods, the Minister of Finance and the Mayor of
h
rc
Christchurch City turned the first sods on the site.
hu
Te Pae Christchurch Convention Centre
tc
is
Te Pae, the Christchurch Convention and Exhibition Centre, is a Crown-delivered
hr
anchor project with the design and construction being led by Ōtākaro Ltd. In August
C
2017, the previous government announced a $240 million contract with CPB
er
Contractors to build Te Pae. Construction began in November 2017.
at
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Ōtākaro appointed the operator, AEG Ogden, in February 2019. Te Pae remains on
track to be delivered on time and within the allocated budget. It will host its first
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event in October 2020.
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is
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th
by
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oa
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20Appendix A: Greater Christchurch Group
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tio
a
er
en
eg
R
h
rc
hu
9(2)(a)
tc
is
hr
C
9(2)(a)
9(2)(a)
er 9(2)(a)
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G
or
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9(2)(a) 9(2)(a) 9(2)(a)
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iv
ct
oa
PrAppendix B: Other key Ministerial
responsibilities
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tio
This section summarises other portfolio areas of responsibility that are currently also
a
active, across the regeneration agencies that report to the Minster for Greater
er
Christchurch Regeneration, and could require Ministerial involvement in the coming
en
months:
eg
Land Information New Zealand (LINZ)
R
Department of the Prime Minister and Cabinet (DPMC)
h
rc
Agencies with insurance-related services
hu
Regenerate Christchurch
tc
is
Ōtākaro Limited
hr
C
LINZ and DPMC are responsible for administering different parts of the GCR Act. They
er
are the only two agencies responsible for the administration of the GCR Act.
at
In the case of the last two regeneration agencies listed above, the Minister for Greater
re
Christchurch Regeneration and the Mayor of Christchurch City Council have joint
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responsibility for Regenerate Christchurch, and the Minister for Greater Christchurch
or
Regeneration and the Minister of Finance have joint responsibility for Ōtākaro
Limited. This section therefore also sets out roles and responsibilities in relation to
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these agencies.
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You will be briefed on the below matters as required.
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Land Information New Zealand
e
th
LINZ has an important role in supporting the Crown’s global settlement negotiations
by
with Christchurch City Council. If global settlement is agreed, it is also expected to
have a key role in implementation over the following two years (e.g. reconfiguration
d
of land where agreed) [NOTE: This is commercially sensitive].
e
as
Land management
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LINZ has responsibility for residential red zone (RRZ) policy and operational
y
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functions, including clearing and managing the Crown-owned land and property
iv
portfolio in greater Christchurch’s RRZ areas, and the central city.
ct
In its management of the portfolio, LINZ is: ensuring that future use options for the
oa
RRZ are not limited by its land management; ensuring that it is supporting the
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regeneration of greater Christchurch; providing advice to support robust Crown
decisions about the land; and overseeing the recovery of relevant insurance claims.
22Residential red zone land
The Crown currently owns nearly 6,700 RRZ properties. Clearance and property
n
management activities include building demolition, maintenance, security and
tio
payment of rates. Clearance of these properties is mostly complete, with only a
a
handful remaining to be cleared, although management of Crown land by LINZ will
er
be ongoing until decisions are made about future ownership. The Crown now has an
en
opportunity to apply lessons from the management of RRZ land to other Crown land
eg
(for example, clearances and health and safety practices).
R
LINZ assesses property-specific requests (transitional and permanent) for accessing
h
and using Crown-owned RRZ land, coordinating with Christchurch City Council and
rc
Regenerate Christchurch. The Minister for Greater Christchurch Regeneration’s
hu
approval is required for any permanent use outside of a formal regeneration planning
tc
process (for example, for urgent infrastructure works).
is
LINZ supports DPMC in providing advice to the Minister on Regenerate Christchurch’s
hr
draft Ōtākaro Avon River Corridor Regeneration Plan, and any other RRZ-related
C
regeneration planning activities or strategies that may be developed. The Minister,
er
under the GCR Act, will make the final decision on the Plan.
at
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LINZ is also responsible for Crown offer processes, including as part of the Crown’s
further and final response to the Quake Outcasts litigation. The Crown offer expired
G
in April 2019. There are currently 134 privately-owned properties in the RRZ areas.
or
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Central city land
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is
LINZ is working with property owners to acquire land for anchor projects in the central
in
city. Once acquired, LINZ demolishes buildings and manages this land. The Minister
M
makes decisions on compulsory acquisitions, related compensation, and on land
e
disposals. The Minister’s approval is also required for the negotiated acquisition of
th
land and related payments.
by
LINZ is responsible for the administration of a Compensation Panel relating to land
d
compulsorily acquired under the Canterbury Earthquake Recovery Act 2011 or the
e
GCR Act. The Panel comprises three experts and was established to provide advice
as
and recommendations to assist the Minister in determining whether compensation is
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paid and how much. LINZ will brief you on compensation claims as required.
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EQC RRZ Claim
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iv
The Minister has delegated her responsibilities for this part of the portfolio to the
ct
Minister for Land Information, including finalising the Crown’s RRZ EQC land claim.
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LINZ is leading this process for the Crown.
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23Greater Christchurch Group, DPMC
This section covers key GCG focus areas not covered elsewhere in this Briefing.
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Horizontal Infrastructure
a
er
en
The Stronger Christchurch Infrastructure Rebuild Team (SCIRT) Programme,
consisting of 743 individual three-waters (water supply, wastewater and stormwater)
eg
and roading projects, reached practical completion in June 2017. The completion of
R
the physical works and the Defects Liability Period was complete in July 2018.
h
rc
Following the completion of this Period, officials have completed a robust eligibility
hu
review of all programme costs, ensuring they have been correctly treated and
allocated. As a result, a number of corrections were made and a final outstanding
tc
Crown payment of $275,541 was agreed with Christchurch City Council officials to
is
close-out the programme.
hr
C
The final invoice has been received from Christchurch City Council and will be
er
accounted for in the 2018/19 year. Payment of this invoice will take the Crown’s total
financial contribution to $916.1 million and will complete the government’s financial
at
and non-financial obligations in the rebuild and repair of earthquake damaged three-
re
waters assets in Christchurch City.
G
or
The rebuild and repair of damaged three-waters infrastructure in the Waimakariri
rf
District is nearing completion, with physical works on all projects expected to be
complete in July 2019. To date, the Government has reimbursed the Waimakariri
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District Council $19.11 million for eligible three-waters costs. The government’s
is
in
remaining contribution to close out the Waimakariri programme is estimated to be
M
$1.64 million.
e
The Environment Canterbury and Selwyn programmes were complete in November
th
2013 and final payments for eligible work totalling $0.82 million and $0.27 million
by
respectively have been made.
d
Public Inquiry into the Earthquake Commission
e
as
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Formally launched on 16 November 2018, the Public Inquiry into EQC is a public
re
inquiry under the Inquiries Act 2013 (Section 6(2)). It has all the powers and
protections of a Royal Commission and is independent of Ministers and officials. Its
y
conduct and operations are the sole responsibility of the Inquiry.
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iv
The purpose of the Public Inquiry into the EQC, launched in November 2018 and led
ct
by Dame Silvia Cartwright (its sole member), is to learn lessons from the Canterbury
oa
earthquakes and ensure that the EQC has the appropriate policies and operating
Pr
structures in place to ensure improved claims management experiences in the future.
24The Inquiry is required to report its findings and recommendations by 31 March 2020,
although it is working towards a report by the end of 2019.
DPMC hosts the Inquiry secretariat in Christchurch.
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Monitoring Regeneration
a
er
en
To date DPMC has played a key role in monitoring and reporting on the overall
progress of the regeneration of greater Christchurch. Monitoring ensures that the
eg
most critical issues receive focus by the responsible agencies. Monitoring is
R
undertaken at the following levels:
h
rc
Monitoring progress against overall outcomes using regeneration indicators:
hu
o These monitoring reports objectively assess the progress of
tc
regeneration in greater Christchurch in six key areas: demographics,
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the economy, infrastructure, wellbeing, housing and tourism.
hr
C
o The most recent of these reports on the progress of regeneration
outcomes, from the October - December 2018 quarter, using robust,
er
reliable, and evidence-based data is attached to this briefing
at
(Appendix D).
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Monitoring and reporting on Crown-led greater Christchurch regeneration
work:
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o This quarterly monitoring and reporting helps central government and
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communities remain confident that agencies continue to focus on, and
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are held accountable for, the delivery of regeneration functions and
in
programmes and are committed to supporting positive regenerations
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outcomes.
e
th
Joint Crown/Council monitoring of Regenerate Christchurch:
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o DPMC is jointly responsible with the Christchurch City Council for
monitoring the performance of Regenerate Christchurch and its Board.
d
Quarterly joint Crown/Council monitoring reports provide an
e
as
assessment of whether Regenerate Christchurch is delivering the
regeneration outcomes sought. This quarterly report will also contain
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supplementary outcome information from DPMC intended to identify
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any risks or future issues, which may arise in Regenerate Christchurch
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driving its regeneration outcomes.
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ct
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25Insurance-related services
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Greater Christchurch Claims Resolution Service
atio
The Greater Christchurch Claims Resolution Service (GCCRS), hosted by MBIE, is a
er
Crown co-ordinated insurance resolution service for Canterbury homeowners with
en
unresolved earthquake insurance claims resulting from the 2010/11 Canterbury
eg
earthquakes. It is a free, impartial service that provides a Government-led,
streamlined, cross-agency claims resolution process that is supported by the wider
R
insurance industry.
h
rc
The service was launched in October 2018, and is central to the package of initiatives
hu
designed to improve the resolution of outstanding insurance issues arising from the
tc
Christchurch earthquake sequence.
is
hr
GCCRS has worked on over 1000 cases since October 2018
C
When GCCRS was launched in October 2018, close to 4,000 unresolved insurance
er
claims remained. Many of the remaining claims are complex, and the resolution
at
process is not straight forward.
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G
GCCRS has worked on over 1,000 cases since October 2018. It continues to receive
or
very positive feedback from its customers with over 60 percent of referrals into the
service coming from either current customers or from lawyers within Christchurch.
rf
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GCCRS advisory arrangements
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The GCCRS advisory framework includes an overarching Advisory Committee with
four subject-specific Advisory Groups (Engineering, Legal, Homeowner and
e
Wellbeing). It includes the Chairs of the four Advisory Groups, MBIE and Treasury
th
with EQC, Southern Response and the Director of GCCRS as attendees. The
by
Committee advises MBIE on oversight of the GCCRS’s performance against stated
principles, objectives and the Homeowner Charter, providing co-ordinated advice and
e d
recommendations on service improvements where necessary.
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The Advisory Committee is accountable to MBIE, with reporting requirements to the
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Minister for Greater Christchurch Regeneration after every quarterly meeting.
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Other related services
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iv
ct
The Canterbury Earthquakes Insurance Tribunal
oa
Pr
The Ministry of Justice recently launched the Canterbury Earthquakes Insurance
Tribunal (CEIT) as part of the wider system for resolving claims. The Tribunal provides
26mediation services, hearings, and makes binding decisions. It provides specialist
application of existing law and precedent.
MBIE and the Ministry of Justice have been working closely to ensure that the services
n
tio
provided by GCCRS and CEIT are complementary in how they seek to assist
homeowners to choose between the various options to settle their claim. GCCRS has
a
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already begun referring cases to CEIT.
en
Residential Advisory Service
eg
R
The Residential Advisory Service (RAS) which was established in 2013 to assist
h
homeowners facing challenges in getting their damaged homes repaired or rebuilt
rc
following the Canterbury earthquakes continues to assist those affected by the North
hu
Canterbury events and other parts of the New Zealand such as the Edgecumbe floods.
tc
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hr
Regenerate Christchurch
C
er
Role and functions
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Regenerate Christchurch is a body corporate, jointly owned and funded by
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Christchurch City Council and the Crown. It was established under the GCR Act to
or
lead regeneration in Christchurch. It is governed by an independent Board.
rf
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The functions of Regenerate Christchurch as set out in section 123 of the GCR Act
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are to:
in
Develop visions, strategies, and regeneration plans to assist in achieving
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regeneration;
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th
Make recommendations and provide advice on the development, revocation
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and amendment of regeneration plans and the exercise of power under
section 71 of the GCR Act;
d
e
Facilitate increased investment;
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Provide advice to Ōtākaro Limited, Development Christchurch Limited, and
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others on the regeneration outcomes being sought;
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Comment on regeneration outcomes and interventions, and the contribution
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of Ōtākaro Limited and Development Christchurch Limited; and
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ct
Provide independent advice on regeneration activities to the Council and to
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the Minister.
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