Performing arts centre project update
2 July 2021
Additional funding approved to achieve the vision for Sir Howard Morrison Performing Arts Centre
The vision for the Sir Howard Morrison Performing Arts Centre is to revitalise this iconic facility, and for culture, community and commerce to come together to create a stunning, innovative hub of activity in the heart of our city. It will also support the development of a vibrant performing arts sector for our District.
Once complete our community will have an outstanding regional performing arts centre celebrating the unique stories and heritage of our place. The 950+ seat theatre will attract national and international shows to our doorstep. The flexible black box theatre will accommodate a wide variety of performance genres and stage set-ups. New rehearsal studios will be able to double as production rooms. Accessible digital technology will enable us to take local performances to the world, and a significant heritage building will be restored in the heart of our city.
As a Category 1 heritage building sitting on geothermal ground, this hugely complex project has required great care and detailed planning. Construction started in October 2020 and the project has made great progress with more than 30% of the construction phase now complete. The foundations and groundwork are nearing completion, and the public will see the transformed Centre take shape very quickly over the next few months. Reopening is scheduled for mid-2022
A detailed and robust project plan and budget was developed up front, which identified a range of risks informed by experts. All budget projections were rigorously peer reviewed with information provided by structural engineers, geotechnical engineers, architects, quantity surveyors and project managers. The construction contractor was engaged early to ensure buildability of the design.
As construction got underway, and internal walls, floors and ceilings were removed, along with plaster on exterior walls and excavating original foundations, building condition issues, more widespread and severe than pre-construction investigations estimated, were discovered.
“We undertook comprehensive pre-construction investigations and testing, and identified potential risks including additional plaster integrity, asbestos and structural issues,” said Deputy Chief Executive Community Wellbeing, Jocelyn Mikaere.
“Until we actually started construction, and removed floors, ceilings, and wall coverings, we could not actually see, and could not have known, the full extent of what we are now dealing with,” she said.
Actual foundations were different to the plans, requiring structural design alterations. Far more extensive cracking, including some structural, was uncovered in the walls. Exterior walls, that were originally to be encapsulated and painted, now require paint/plaster removal and repair to ensure the building achieves the necessary structural strength and consent for weather tightness. As a result, the level of asbestos removal required has increased from 20% to 80% of the building.
In order for the building to achieve consent, and to prevent future generations encountering similar legacy issues, Council approved additional budget to address these issues.
“Now more than ever, Council must demonstrate confidence and ensure that our special buildings of significant interest are restored and invested in,” said Rotorua Lakes Councillor Mercia Yates.
“This particular building has had its fair share of challenges, but with that I am absolutely excited by the potential of celebrating our arts and culture in a regional first,” she said.
The project budget, set in 2019, was $22.5 million. To ensure the project delivers a safe, sound and fit-for-purpose facility, with the now-known building condition issues addressed, Council has approved a total project budget of $33.7 million. Generous funding support has resulted in $11.1 million being contributed from external sources meaning the total Council contribution is now $22.6 million.
“The team is passionate about this project and have worked tirelessly to keep costs to an absolute minimum,” said Ms Mikaere.
“The revised project budget includes a contingency sum, and the project team is continuing to explore options for further external funding. Ultimately our community will have a leading regional performing arts facility at a fraction of the estimated new build cost of $70-$80 million,” she said.
Once complete, this iconic heritage building in the heart of our city will once again be a hugely valuable, intergenerational asset and a busy community hub celebrating and showcasing the rich and diverse talent for which Rotorua is so famous. It will attract national and international shows for local and regional audiences.
Rotorua Rural Community Board Chair, Shirley Trumper said as part of the Project Steering Group it was our responsibility to ensure a fit for purpose and safe facility met the high expectations of our community and the very artists that will enjoy showcasing their talents to Rotorua.
“Shows of high calibre were missing our city, because the facilities did not meet required industry standards,” said Mrs Trumper.
“To address this we decided to ensure something spectacular came of this opportunity. Yes, this journey has been a challenge, not just in terms of addressing heritage issues but the fact this was a very damaged lady in need of repair. Now, with the funding in place, not only can we deliver stunning facilities, moreover, this iconic building will meet the needs of even the most discerning artist,” she said.
The strengthening and redevelopment of the Sir Howard Morrison Performing Arts Centre is an important project for our district and regional economy, and for the well-being of our community. With about 80% of the contracted trade workforce being local, this project is already delivering positive economic impacts for our community. Once complete it will provide ongoing employment, will support and enable growth in the performing arts sector, and will provide additional capacity for the hugely valuable conference and business event sector, currently worth around $50 million each year to our local economy.
A community update presentation on the Sir Howard Morrison Performing Arts Centre project will be held in Rotorua Library at 12noon on Tuesday 13 July.
WATCH
View a tour of the SHMPAC site, led by Manager Arts and Culture Stewart Brown leads a tour of SHMPAC this week:
An update from Brent Wade from project contractor Hawkins:
BACKGROUND AND FAQS
The 1940s Category 1 heritage building had to shut its doors in November 2017 after a seismic assessment determined the building was just 25% of new building standard and therefore earthquake prone. Under the Building Act earthquake prone buildings must be strengthened or demolished. Once complete the building will be over 70% NBS.
Prior to closure a business case had also identified that the Centre lacked flexibility, was hugely underutilised, and did not have the required infrastructure to support performing arts. The decision was made to strengthen and redevelop the facility into a fit-for-purpose performing arts centre.
The Category 1 heritage status of the building added significant challenges to an already complex project. The team worked with Heritage New Zealand, and heritage architect Ian Bowman, to identify key heritage features that needed to be preserved whilst also ensuring the completed Centre was compliant and functional.
After almost three years of detailed planning, design and investigative works, construction commenced in October 2020 and is due for completion in March 2022. This will be followed by theatre services fit out and operational testing, with the Sir Howard Morrison Performing Arts Centre due to open in mid-2022.
Once complete, the transformed Centre will house multiple spaces with the flexibility, equipment and infrastructure required to support a regional performing arts centre. It will be a place that reflects the unique identity of Rotorua, where our local performers can once again showcase their talents on a professional stage, and where local, national and international events can be hosted for our community, right here in the heart of Rotorua. It will also contribute positively to the economy, providing local jobs, bringing vibrancy to our city and enhancing the well-being of our people.
Why were these issues not known?
As a 1940s Category 1 heritage building this structural strengthening and redevelopment project was considered complex from the start. A range of potential risks were identified and contingency budget provision was calculated including for asbestos removal, crack repair and further structural work.
Comprehensive planning and expert investigations were undertaken to inform the project plan and budget. In the case of asbestos, three lots of testing were done, with samples taken from many locations around the site. However, it was not until construction commenced and paint, walls, ceilings, floors and coverings were removed, that the full extent of the issues were uncovered. For example, the seriousness of the cracking and asbestos was much worse than the experts had expected, and until the construction crew exposed all the foundations the team was not aware that the foundations did not match the plans.
How much asbestos will need removal?
Initially the plan had been to remove asbestos from around 20% of the building, focusing on the walls surrounding the foyer. The original plan was to encapsulate the asbestos on a further 60% of the building. About 20% of the building, mainly the stage house at the back, does not contain asbestos. The initial estimate for asbestos removal was 800m2. Once construction was underway, and the layers were peeled back on the foyer walls, the full severity and extent of cracking was revealed. This meant the project team could not assume the weather tightness and structural integrity of the exterior walls, resulting in the need to remove 1,700m2 of asbestos.
How extensive is the cracking?
As construction has progressed, cracks have been uncovered right throughout the building. The types of cracks include superficial surface cracking, cracking that compromises the weather-tightness of the building and structural cracking that has required additional engineering design to ensure the building meets the required structural strength. The majority of the cracks on the exterior walls impact the ability to achieve a weather tight building. Without removing the asbestos and repairing these cracks the building would not achieve consent and would leave legacy issues for the future.
What is the additional funding for?
The additional funding covers construction costs for extra structural strengthening and building condition repairs. It includes further design work required across the professional services to address structural integrity issues and changes resulting from the actual building construction not matching plans, particularly in the foundations. It also comprises some additional theatre services to ensure that when it opens, the Sir Howard Morrison Performing Arts Centre will have all the necessary equipment required to operate to the high standard that has been envisioned.
- $6.7million for building condition issues including asbestos removal and additional structural strengthening.
- $1.9million for additional theatre services equipment. A comprehensive audit of existing equipment by the new technical expert identified some equipment was no longer compliant, some was beyond its usable life or would be too costly to operate, and some will not meet required performance standards.
- $1.7million for professional fees as a result of required structural and architectural design changes and the extended time frame. We have reviewed other similar projects and the total fees are still within normal construction project ranges.
- $0.8million other elements (e.g. signage, consents, communications equipment, and contingencies
What is included in the additional theatre services?
Existing theatre services equipment is being re-used wherever possible but a recent audit has identified that, given the building has now been closed for almost four years, some of this is now beyond its useable life, is no longer compliant or would result in significant operational costs to utilise.
The additional budget is for items essential to operate the Centre from opening. This includes replacing incandescent light fittings with LED and the infrastructure to support it, replacing analogue audio equipment with digital and a new speaker system for the main auditorium. Existing microphones and speakers will be re-used where possible. The analogue video systems will be upgraded to digital, and Fibre and Cat 6 cabling will be installed to meet current and future needs of the venue.
When were decisions about the need for additional funding made?
Determining the required amount of additional funding has been a two-step process. The $22.5million project budget, set mid-2019, was based on early design cost estimates. Prior to the main construction contract being awarded in September 2020, some building condition issues were identified resulting in additional design costs and the tendered construction price being higher than originally estimated. To account for these changes the budget was increased to $28.5 million, including a contingency provision, by Council in September 2020.
After construction commenced, and surface layers containing asbestos were removed from select walls where cracking was clearly evident, the cracking was found to be more extensive and severe than expected. Experts were engaged to provide advice around the need for additional asbestos paint removal to access, assess and repair additional cracking now expected in other walls. Following this extensive work the budget was increased to $33.7 million in June 2021.
Why were decisions made in confidential at Council meetings
Procurement for contracts of this size have a high degree of commercial sensitivity. Making this information public at the time would have compromised contract variation negotiations, needed to address the building condition issues. In particular, the project team needed to ensure our contractors were not privy to information about the contingency allowance, as this could potentially have influenced quoted prices.
Where will the additional budget come from?
The additional funding required to complete the Sir Howard Morrison Performing Arts Centre will come from within the approved 2021/22 Long Term Plan funding envelope.
How do we know that there won’t be any further cost increases?
There are still some risks which have been identified. The team is working hard to control costs, and contingency is included in the budget in case any of these risks eventuate. As construction progresses, and particularly once the foundation and groundwork are complete, these risks diminish. There is no more digging to do, foundations are 90% complete and overall construction is 30% of the way there.
Where has the $11.075m in external funding been sourced from?
External funding raised to date includes:
- $5.2 million from NZ Lotteries
- $3.0 million from Sir Owen Glenn
- $1.5 million from Rotorua Trust
- $1.0 million from NZCT
- $150,000 from Ngāti Whakaue trusts
- $125,000 from One Foundation
- $50,000 from Pub Charity
- $50,000 from Four Winds Foundation
Was demolition an option?
Under current Building Act legislation earthquake prone buildings must be strengthened or demolished. As a Category 1 heritage building, demolition was an option of last resort. Estimates to demolish and build new were in the region of $70-$80million so this option was discounted as unaffordable.
How does this cost compare to actuals/estimates for other heritage building strengthening projects?
- Rotorua Museum – currently estimated at $53.5 million
- The Sargeant Gallery Whanganui - currently estimated at $49.3 million
- Wellington Town Hall - currently estimated at $112 million plus contingency
- St James Theatre Wellington - currently estimated at $37 million
- Christchurch Cathedral - currently estimated at $154 million
- Hastings Opera House and Municipal Building - currently estimated at $38 million
- Founders Theatre Hamilton (not a heritage building) - Hamilton City Council opted to demolish it at a cost of $3.6 million, and build a new theatre for an estimated cost of $73 million
Further information about this project is available on the following pages:
Vision to Action: Transforming the Sir Howard Morrison Centre
Latest construction images, regular live updates and dates for project presentations can be viewed @SirHowardMorrisonTheatre