“Together, the hotel and conference center will attract a high proportion of out-of-town guests and will provide net economic benefits to the city and wider region,” the report said.
Commissioners were also told that funding for the conference center would likely encourage private hotel development investment.
RNZ reported last week that the council had put the business case on hold while it investigated the possibility of central government and private sector funding for the project.
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Gareth Wallis, general manager of urban development and partnerships, told RNZ the council wanted to wait until it knew more about these funding opportunities before taking on work that might not be needed.
Mayor Mahe Drysdale said she supports putting the business case on hold.
“From the outset, this was envisaged primarily as a private sector investment opportunity, with the council involved as intermediary and landlord.”
There is no “immediate need” for the project
Grace Road Neighborhood Association president and Tauranga Club vice president Phil Green said the proposal should be “completely withdrawn”.
“I don’t see any pressing need for it now or in the next 20 years.
“If it's financially viable, it will be built by big companies and people in the tourism industry.”
He said it was not the first time the council had pushed for a CBD hotel and in his view was wasting “a lot of time and money on something that is not the core business that the council should be working on”.
Phil Greene – Grace Road and Neighborhood Association President – Photographed in 2020. Photo/George Novak
He did not think the proposed development would attract more people to the area. That's because it is “just one small cog in a vast wheel of space” available in the city.
Mr Green said Tauranga Club was a private members' club and could hold events, including meetings for up to 250 people, at its location in Devonport Towers.
Mr Wallis told the Bay of Plenty Times that no money had been spent on developing the proposal since the decision was taken to proceed with the business case developed earlier this year.
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The initial feasibility study and architectural design work was completed in 2023 and cost $85,690 + GST.
“We will take direction from city councilors when this project is discussed at some point in the future, but no deadline has been confirmed at this time,” Wallis said.
The council did not respond to Greene's comment.
“Practical” decisions
Main Street Tauranga manager Genevieve Whitson said Downtown Tauranga supported progress in the city centre, but “it has to be the right step forward for the right reasons”.
“Given the current environment, we believe TCC’s decision to pause its plans is a sound business decision.
“They have spent a lot of time in terms of thoroughly investigating the funding opportunities and the potentially significant benefits to the city center from the hotel and conference center adjacent to Te Manawataki o Te Papa. I hope this extra time is spent well.”
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Tauranga Chamber of Commerce and Industry CEO Matt Cowley said the chamber saw this as a “pragmatic” response to the current environment and the need to clarify funding sources. .
“They haven't stopped the project, they're just focusing on other priorities until we get clarity.
“This project has been planned for over a decade, so a few years of delay will not impact the momentum the CBD has generated to date.”
Mr Cowley said construction of the “core part” of Te Manawataki o Te Papa was progressing well and appeared to be still in progress.
“Given the construction-related disruption that has occurred across the city center recently, it is great to see the project completed and delivering the expected results.”
Bay of Plenty Tourism general manager Oscar Nathan said the hotel and conference center opportunities “remain the same”.
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He said the change was due to the election of a supportive council to ensure that all public and private funding options are considered to ensure the revised business case is thorough. said.
“It's clear that Tauranga remains one of New Zealand's fastest growing cities, with many developments taking shape across the city center over the next few years in terms of business events and tourism. Tauranga's appeal continues to grow.”
Economic development agency Priority One has been contacted for comment.
Megan Wilson is a health and general news reporter for the Bay of Plenty Times and Rotorua Daily Post. She has been a journalist since 2021.
