Mayor Andrew Little says the council needs to establish why several of its projects have gone way over their budgets. Photo: RNZ / Mark Papalii
Wellington's mayor says a review of the Golden Mile project will give the council an opportunity to take another look at what the project was trying to achieve.
The Wellington City Council on Thursday voted for a review of the contentious project, which council officers predicted would now cost up to $220 million - up from $139m.
Mayor Andrew Little told Morning Report the area was in need of work, but the project had to be realistic and affordable.
"People certainly want to see that end of the Golden Mile, the Courtenay Place end, spruced up a bit and tidied up.
"But on all these things I always say: 'let's go back to these objectives, let's see how we can cut the cloth to suit, and see whether we can achieve the objectives, but at a rate that's more affordable for Wellingtonians'."
The overall goals of the Golden Mile were good for the city, but the review was needed to work out how to rein in ballooning costs, Little said.
"They are important. Getting better passage of public transport so we get more reliable public transport services, improving places for people to walk and all that sort of stuff."
The council and its ratepayers "simply cannot sustain another cost blowout", Little said.
"The worst thing would be to box on, regardless of the numbers."
The council also needed to work out why projects like the Town Hall and the Golden Mile kept going over budget.
"At some point we are going to have to go back over those projects. You can't have cost blowouts of that magnitude and not see that there is something wrong with the way projects are being managed or planned or designed or whatever it is.
"We will, at some point, have to get to the bottom of that because, whatever it is, we have to improve our processes," Little said.
Some works have already begun at the intersection of Cambridge and Kent Terraces, but council officers said in October it was discovered that the Courtenay Place works, which are currently under negotiation, are now expected to exceed budget by between $15m and $25m.
It's the second time this year a budget blowout has been reported on the project. In August, a $20 million increase was reported, but the project was reviewed and brought back into budget.
Little said on Thursday that asking for a review of the Golden Mile was one of his first actions as Mayor, because it was apparent Council no longer had a clear picture on the costs of the project.
An impession of how some of the Golden Mile project would look. Photo: RNZ / Samuel Rillstone
Review might cost up to $400,000
The review would take three to six months, with council officers providing an estimation of the review costing between $200,000 to $400,000.
It would include economic analysis on both the long-term impacts of the project and also in the short term across the full corridor from Lambton Quay to Courtenay Place.
One of the concerns raised by officers was if the project was rescoped to reduce costs, it could risk losing funding from central government.
"Although the government has agreed to fund 51 percent of the project, that was based on a business case done four years ago.
Meanwhile, the council was potentially on the hook for any cost escalations." That's why we need this review," Little said.
"The review does not relitigate the benefits of the Golden Mile project, and as such will maintain the project's current level of central government support."
Councillor Rebecca Matthews said on Thursday the council had far too many times pressed pause when they should have pressed fast forward.
She was concerned the review could represent the first step in terminating the project and hoped she was wrong in her fears.
The vote for the review passed with 12 in favour and four opposed. Those opposed were Matthews, Laurie Foon, Jonny Osborne and Geordie Rogers.
