Masterton District Council’s $8.7 million plan to upgrade Waiata House has been scrapped in favour of a cheaper option.
Councillors voted in public exclusion on Wednesday to instead buy the customer service centre it currently leased on Queen St and refit it to include a modern, accessible council chamber and emergency operations centre at a cost of $3.5m.
Council chief executive Kym Fell said the new approach was the right call for Masterton and its ratepayers, rather than what councillors had approved in the 2024-34 Long-Term Plan.
“I was not prepared to push ahead with an $8.7 million build when I saw the costs, risks, and benefits weren’t stacking up, so pushed pause to explore how we could deliver the same outcomes for less,” he said.
“After considering several alternative options, purchasing 161 Queen St was a smart and more financially responsible decision.
“It saves millions of dollars, eliminates ongoing lease costs, and still delivers the facilities our community needs.”
Fell said while an IL4-rated purpose-built facility would have been ideal on paper, the additional cost of including civil defence and emergency operations facilities would have pushed the project beyond budget - with no guarantee the building would be usable after a major earthquake.
“This decision reflects the council’s commitment to making sure every ratepayer dollar is spent wisely, with real value in return.”
Fell said the option “delivers on all fronts”.
“It provides a valuable asset in the heart of our CBD, ensures our services remain accessible and visible, and represents long-term savings for ratepayers.
“It’s about being pragmatic, sensible, and putting Masterton first.”
Mayor Gary Caffell fully supported the shift in direction, noting the financial and community benefits.
“Keeping our customer services on Queen St makes perfect sense - it keeps council accessible, supports local businesses through foot traffic, and offers convenience with buses and parking right on the doorstep.
“This is the right move for our community.”
Councillor Brent Goodwin, who voted against the Waiata House upgrade during the Long-Term Plan process, said he was “happy with this turnaround” but said it would be “better governance if councillors set the direction, rather than just following the chief executive”.
The Queen St building has an NBS (New Building Standard) rating of 85% following a seismic assessment.
Once the purchase process was completed, council would begin refitting the building, with timelines to be confirmed. Back-office staff currently based at Queen St would relocate to Waiata House, freeing the building for public-facing services.
- LDR is local body journalism co-funded by RNZ and NZ On Air

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