From the Strategy, Policy & Finance Committee
Rotorua Economic Development’s role may be extended to support delivery of housing and development targets set out in Council's Long-term Plan.
A proposal to extend the Council-Controlled Organisation’s role gained support in principle from the Strategy, Policy & Finance Committee today.
If subsequently approved by the Full Council, a more detailed report, including resourcing requirements and financial parameters and implications, will come back to elected members for their consideration and final decisions.
Council’s DCE District Development, Jean-Paul Gaston, told the Committee strategic targets in the Council’s 2021-31 Long-term Plan, in particular those related to the likes of housing, development and jobs, would not be achieved without working differently.
A modest extension of RED’s role would enable Council to leverage the commercial expertise of the CCO’s board and staff and its existing relationships, it would be able to move with speed, and would provide separation from Council’s regulatory role, protecting confidentiality and building trust, Mr Gaston said.
A staff report presented to the Strategy, Policy & Finance Committee today outlines the intent of and reasons for the recommendation, and detail on how RED (a Council-Controlled Organisation) could be mobilised to operate more effectively.
RED is already charged with supporting urban regeneration and delivery of transformational placemaking projects through its current Statement of Intent. Key tasks include:
- Partnering with public and private sector organisations to create a platform for private sector investment;
- Providing robust information to assist with private sector decision making;
- Assisting with the reduction of regulatory barriers;
- Liaising with investors and landowners and matching capability with opportunity with investors to get development projects underway.
It is proposed this role be extended to provide more tools and a wider mandate for Council and RED to better support transformational placemaking projects. Key tasks would include:
- De-risking inner city development through activities such as supporting due diligence and business cases, understanding risk, upgrading infrastructure, demolition of building and structures;
- Procuring and managing private partners to deliver developments;
- Using Council land to deliver projects when it is clear the private sector alone will not deliver them in the short term;
- Purchasing and assembling larger parcels of land to support or deliver projects;
- Administering and utilising Council’s underperforming strategic landholdings to ensure they deliver maximum value.
An extension of the CCO’s role, as proposed, is expected to include a level of additional funding and designated properties assigned to RED to action initiatives.
“The proposed delivery structure is fundamentally about front footing opportunities and making RED responsible for delivery while maintaining accountability back to Council,” the report to the Strategy, Policy & Finance Committee says.
“Over the past six months Council and RED have been engaging with landowners and developers, to try and influence and support opportunities for transformational placemaking projects. However, through these engagements it has become obvious that the current decision-making structure is not optimal. Commercial partners are concerned about confidentiality and decision making delays if all opportunities must be considered by Council.”
Clear operating expectations and a decision-making envelope would be set to support the proposed new approach, and would determine when RED can make decisions under delegation and when decisions are required by Council.
The proposal received in-principle support from the majority of the Strategy, Policy & Finance Committee with Councillor Reynold MacPherson abstaining and requesting that his abstention be noted.
View the full report on this matter HERE on Council’s website.
View the presentation relating to this matter HERE
Go directly to this portion of the meeting recording via THIS LINK on Council’s YouTube channel.