Council move sorts Invercargill Central first floor problem
While demand has been encouraging for the ground floor through retail and food and beverage outlets, Invercargill Central’s first floor has proved more challenging to fill.
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Invercargill City Council’s shift will play a key role in solving a problem at Invercargill Central, and in turn, will have a positive impact on the council’s investment in the development.
The council has announced that its 240 staff at its Esk St administration building will move down the street to Invercargill Central and the adjacent HWR building.
The temporary relocation is part of the council’s project to address the ageing Te Hīnaki Civic Building.
They are expected to be located at Invercargill Central and the HWR Building for about five to seven years as decisions are made around the long-term future.
The $165m Invercargill Central development opened in 2022. It includes retail stores, 675 car parks, office spaces, and food and beverage spaces in the block bordered by Tay, Dee, Esk and Kelvin Sts.
While demand has been encouraging for the ground floor through retail and food and beverage outlets, Invercargill Central’s first floor has proved more challenging to fill.
Developers had earmarked restaurants and office space for the first floor but it hasn’t proved easy to find tenants to fill it.
However, the council has now leased office space on the first floor which will help with the financial performance of Invercargill Central.
That has a plus side for the council given the Invercargill City Council, through its holding company, is a 47.7% shareholder in Invercargill Central Limited.
The other shareholders are O’Donnell CBD Ltd (46.7%), Geoff Thomson (4.1%), and Crown Regional Holdings Ltd (1.3%).
The council, through Invercargill City Holdings Ltd, has invested $53.20 million into Invercargill Central.
In May the council issued a short-term $18m advance to ICHL to assist with the purchase of shares in Invercargill Central Limited. That loan has since been repaid.
A second loan of $19.1 million remains in place.
At a council finance and policy committee meeting last week finance and assurance group manager Patricia Christie said there was a positive impact on that loan repayment with the council now taking up a lease with Invercargill Central.
While the staff will be based out of Invercargill Central and the HWR building, council meetings will take place in the Victoria Room at the Civic Theatre.
It has been proposed that the Victoria Room be renamed the Council Chamber for the coming years when council meetings will be held there.
Upgrades have also been proposed to ensure the sound quality and other matters are improved for council meetings.
That will be voted on at a council meeting on Tuesday.
Great move