Media release

27 November 2014

New agency to fast track urban development

Auckland Council’s Governing Body today agreed to support the establishment of an urban development agency to improve the city’s ability to address some of its pressing urban development needs.

The new entity, called Development Auckland, will have a key role in helping deliver the council priority of quality urban living and will have the mandate to deal with the challenge of Auckland’s rapid growth through regeneration and investment. The agency will have the capability to deliver public and private development and infrastructure, including housing, across the region.

The new entity is a result of the realignment of Auckland Council’s council-controlled organisations (CCOs).

Mayor Len Brown said: “Meeting Auckland’s development needs over the next 10 to 20 years requires a transformational shift in the council’s approach to urban development and regeneration.

“Central government, the council, the private sector and the not-for-profit sector will be able to work together in a way that does not burden ratepayers further with the costs of growth, but rather sees them realise the benefits of it.

“The CCO review has provided Auckland Council with an opportunity to address this.”

Development Auckland will see the merger of two CCOs: Auckland Council Property Limited and Waterfront Auckland. It will allow the council to play a much stronger role in urban development through greater economies of scale, enhanced commercial capability and the ability to partner with others.

Deputy Mayor Penny Hulse, who chairs the CCO Review committee, said Development Auckland will utilise the existing scale of the Auckland Council Group to provide a total urban redevelopment package.

The Auckland Council’s Governing Body accepted recommendations that will see the concept of a new urban regeneration CCO go out for public consultation through the council’s Long-term Plan.

The Long-term Plan will be finalised in June 2015. If approved, Development Auckland could be established by 1 September 2015.

Few changes for other CCOs

CCOs that provide water services, major new investments, major events and tourism will all remain within their current structures.

Deputy Mayor Hulse said the review had been a wide-ranging and critical examination of the CCOs governance and alignment of CCO operations with the Auckland Plan.

“It’s pleasing to note that generally our CCOs are working very well. The review has found that the current arrangements are cost-effective compared to other options.

“The 9-month review has been a wide-ranging and critical examination of the CCOs governance, and the alignment of CCO operations with the Auckland Plan and other council policies and strategies,” she says.

The council received reports summarising feedback from the CCOs, local boards and the Independent Maori Statutory Board as well as the Public Services Association.

Ends

Notes for editors

Other CCO review options not to be pursued:

• Transferring responsibility for water supply and wastewater from Watercare Services to the council

• Transferring responsibility for stormwater from the council to Watercare

• Transferring new major investments outside of the council to Auckland Council Investments Ltd

• Combining major events and tourism with regional facilities.

To be pursued:

• Responsibility for managing the council’s diversified financial assets portfolio will be transferred from Auckland Council Investment Ltd (ACIL) to the Auckland Council’s Treasury unit.

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