1. To provide an update on the Tauranga Marine Precinct project for the period to 30* June 2016.

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1 33 Monltorlng Committee 18 Juty 2016 DC No: 190 Purpose 1. To provide an update on the Tauranga Marine Precinct project for the period to 30* June Executive Summary 2. Regional Infrastructure Fund (RIF) funding pre-release deliverables remain with a stormwater consent currently being processed and issued by the BOPRC. 3. The Land Sale Tenders for the Sale One Lots was concluded with six companies signing Sale and Purchase agreements with TCC on the 30'^ June Three shortlisted civil works contractors are concluding the final price revision prior to announcement of a preferred contractor. 5. Post signing of the RIF Funding Agreement Cimolai Technologies of Italy was announced as the preferred supplier in late 2015 for the boat hoist/travel-lift and post signing the Land sale and purchase agreements a contract with them will be shortly executed. 6. Discussions with the BOPRC focus on the likely project timelines resulting in an opening date for the precinct in mid Recommendation/s That the : (a) Receive Report (DCI 90) - (DCI 90). Discussion BOPRC Funding Approvals and RIF Agreement 7. TCC has kept the Marine Precinct funding partner BOPRC fully briefed during the period of negotiation with land sale purchasers since the tender closed in late Prior to the end of the 2015/16 financial year it was agreed with the BOPRC that all RIF funding would be drawn down during the 2016/17 financial year. 9. A new funding drawdown schedule will be submitted shortly which will align with the cash flow forecast that will be received from the successful civil works contractor.

2 - r/^ 18 July There are a number of deliverables that remain to be achieved prior to the receipt of funds from the BOPRC. These include receipt of the stormwater consent for the new outfalls and confirmation of TCC's ability to comply with the conditions within the consents for the project. It is expected that this consent will be received by TCC during July. Property Sales and Marketing 11. The signing ofthe RIF Funding Agreement on 18 November 2015 allowed the project team to release the tender documents for the Stage One Land Sales on 20 November The tender closed on 21 December Since the close of the tender, TCC has negotiated with tenderers over the location, shape and size of several tenderers' lots. Negotiations included relocation of a number of tenderers based on the oversubscription of the stage one lots and the fact that several purchasers had tendered for the same lots. 13. The relocation of some tenderers required TCC to consider the use of some stage two and three lots which have subsequently been amalgamated into the stage one sales process. 14. Negotiations concluded during the middle of June, allowing a signing ceremony to be arranged for all stage one lot purchasers on the 30'^ June The event was attended by all six stage one tenderers with the Mayor and CE signing the sale and purchase agreements before all tenderers met in the Council chambers. 15. The Mayor gave a toast to the assembled group including the media and Elected Members. Peter Busfield, the Executive Director of New Zealand Marine then spoke to the group, congratulating the Council on their perseverance and vision for the Marine Precinct site and suggesting that the development will be the catalyst for Tauranga to return to its former position in the top three marine destinations in the country. 16. A list of the successful tenderers is attached at Attachment A, along with a short description of their business activity. Land sale values will not be publically declared or available until after the land sales go unconditional. 17. A number of conditions exist within the agreements, both for the purchasers and TCC to satisfy over the coming months. These include TCC support for purchasers to seek resource consent for buildings taller than the current zoning allows. TCC is also required to make a number of amendments to the subdivision consent to allow boundary realignment to a number of lots. Consents 18. BOPRC is close to issuing the remaining primary consent for the Marine Precinct. This is a comprehensive stormwater discharge consent to allow water from the hardstand to be discharged to the harbour after specialist water processing. The application was placed on hold earlier in the year when further consultation was requested of TCC. This has now been completed. 19. TCC will shortly seek to amend the existing BOPRC seawall consent to allow for the recently amended final concept design for the boat hoist/travel-lift runways and the

3 35 18 July 2016 ' seawall, which are different to those included in the historic 2011 consent. TCC does not expect any difficulty or time delay in amending this consent. Civil Works Contractors 20. Currently the project team is awaiting final pricing submissions from all three short listed civil works companies after receipt of the refined design from TCC's marine engineers and the amendment to the lot layout plans agreed during negotiations with the Land Sale purchasers. 21. During the last few months all contractors have been asked to submit pricing for a number of alternative solutions specifically for the boat hoist/travel-lift runways and associated seawall. This focus is to guarantee that the final build cost comes in under the allocated budget and that TCC can select options as required. 22. The final construction contract will now be amended to allow for provision of services to the additional lots included in the stage one land sales and subdivision process. This potentially includes the re-routing of Den Place subject to the final layout of Lot 7 which is being sold to Super Yacht Coatings. 23. It is expected that TCC will announce its preferred contractor before the end of July Contractors are expecting all civil works to take approximately 9-10 months. This will result in completion in May/June 2017 subject to no unfavourable weather or other conditions. Travel-Lift Procurement 25. Post execution of the RIF Funding Agreement in November 2015, Cimolai Technologies of Italy was announced as the preferred supplier of the boat hoist/travellift. 26. The procurement of the machine has now been concluded with the supply contract being considered by TCC legal counsel before being executed by the CE. 27. Construction of the machine will commence in August 2016 with delivery of the machine expected at the Marine Precinct in April Once on site, assembly and commissioning will be undertaken with final handover being estimated in June Commissioning and training will be subject to the heavy pavement being completed for the significant load testing required of the machine ahead of handover. Consultation 28. The project team continue to consult with a number of parties on a regular basis including iwi and the local marine industry. 29. Consultation with iwi during the last quarter has included a project update to the Tauranga Moana Tangata Whenua Collective on the 26* May. This update brought iwi members up to date on the project including progress with the land sale process, and indicated that an announcement on the land sales was imminent. 30. Specific consultation has also been completed with iwi during the last 6 months specifically focused on TCC stormwater discharge consent application to the BOPRC

4 36 4^ 18 July 2016 for the Marine Precinct's main hardstand area. This consultation specifically focused on the most appropriate monitoring regime for the precinct going fona/ard, with an agreement reached with iwi for TCC to amalgamate the Marine Precinct's consent monitoring into the wider comprehensive consent monitoring which includes opportunities for cultural monitoring. 31. The project team will next report to the collective in August with an update on the marine precinct, but will focus on a number of areas of interest for iwi as requested at the last collective meeting. Iwi have indicated an interest in understanding some of the finer detail regarding the Marine Precinct such as how the water processing system will work, what plans the precinct will develop for the management of bio security in the region. 32. We will also report back to the collective on the specific discussion we have been having with iwi representative regarding the opportunity for cultural naming within the precinct which was a request made at the last collective meeting. Project Plan Tasks 33. The immediate work ahead for the project team and the Group of Advisors includes (but is not limited to): Working with all Stage One land sale purchasers to conclude any conditions and receipt of any deliverables including their Development Plans for those sites currently undeveloped. Working with the BOPRC to conclude the receipt of the stormwater consents for the project including the required amendments of the historic consents to align with current design scope. Confirming a drawdown schedule for the RIF funds from the BOPRC post receipt of the cash flow forecast from the preferred civil works contractor. Final evaluation of the Civil Works Tenders, and announcement of the preferred contractor. Contract execution with Cimolai Technologies for the boat hoist/travel-lift. As work is on-going a verbal update will be provided at the meeting. Attachments Attachment A lists all Stage One Land Purchasers, along with a short description of their business activity. Signatories Authors Phil Wardale - Project Director - Tauranga Marine Precinct

5 37 TauranfaCity 18 July 2016 Authorisers Jaine Lovell-Gadd - General Manager City Transformation

6 38 Attachment A ATTACHMENT A The future occupiers ofthe Tauranga Harbour Marine Precinct: Lots 9 & 10 HUTCHESON B O A T B U I L D E R S Hutcheson Boatbuilders have been in the marine business for over 18 years and are known for their high-quality boat building workmanship. Hutcheson Boatbuilders carry out a complete range of boat building work on both commercial and recreational vessels including new boat construction, general repairs and maintenance, vessel refits, fibre glassing, interior cabinetry, stainless steel work boat grooming and all manner of shipwright work. Lots Pachoud Yachtjs NEW ZEAUAND Specialist in the building of composite motor yachts metres, Pachoud Yachts are renowned world-wide for engineering excellence, world-class high-quality finishes, luxurious timber interiors and unwavering attention to detail. They have successfully completed over 50 yachts building everything from power catamarans, motor launches to high performance carbon fibre racercruising yachts. Lot 4 paclflcy Pacific 7 is a marine contractor that provides tug, barge and workboat services to central and local government, the oil and gas sector, the military and others. The company also carries out maintenance of vessel moorings in the Bay of Plenty, Waikato and Coromandel regions, and Pacific 7's barges and digger are contracted for dredging and similar activities in these areas. Pacific 7 is also resourced for emergency response duties and service and supply runs. Lots 2 & 3 RMD Marine Limited RMD Marine fish and land fish from the West Coast to the East Coast ofthe North Island. The company owns and operates six fishing vessels ranging from 15 to 26 metres in size, and will soon be launching a new build trawler which will create an exciting future for the family-owned company. RMD Marine have been working with Aotearoa Fisheries since 1993, the largest Iwi-owned fisheries company. RMD currently fish 2,700 tonnes per year for Aotearoa Fisheries.

7 39 Lot 12 Specialised Metal Fabricators Ltd SMF Engineering is a light engineering firm specialising in aluminium, stainless steel and other non-ferrous metals. SMF are involved in all facets of engineering, almost exclusively related to the marine industry. Their services cover fabrication, repairs and maintenance as well as the manufacture of a wider array of metal parts from highly polished rails and deck fittings, to exhaust systems and heat exchanges. Lot 7 Super Yacht Coatings International Ltd specialises in the fairing and painting of large luxury vessels. Since its formation in 2012, Super Yacht Coatings has been involved in the painting of every super yacht built in New Zealand. The company was set up in Auckland, and its locally born owners are taking the opportunity presented by the Marine Precinct to extend their business to Tauranga, in a purpose-built facility with heavy lifting capacity. The company's current focus is on superyachts and pleasure craft. Working in the precinct they plan to market their services and expertise offshore, nationwide and locally to a wide range of vessels from luxury super yachts to commercial fishing boats and ferries.