Wellington ratepayers asked to contribute millions towards Shelly Bay infrastructure

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Vision for Shelly Bay: A promotional video produced for Taranaki Whānui and Port Nicholson Block Settlement Trust.

Wellington ratepayers look set to fork out millions to help cover the $20 million cost of improving the tired infrastructure at Shelly Bay.

Recently-released public consultation documents show it will cost $13m to provide all the infrastructure needed for the rundown area - including roads, seawalls, water, sewerage and wastewater - with an extra $7m needed for upgrading public spaces, including three parks.

Doing so will pave the way for a $500m development of the Miramar Peninsula site that will include 350 new properties made up of a 140-resident rest home, a boutique hotel, 280 apartments, 58 townhouses and 14 standalone homes.

An artist impression of the proposed development of Wellington's Shelly Bay.
STANTIALL STUDIO/SUPPLIED

An artist impression of the proposed development of Wellington's Shelly Bay.

The development is a joint venture between the Wellington Company and Port Nicholson Block Development Trust (PNBST), which owns 7.8 hectares of land at Shelly Bay. Wellington City Council owns 3.5ha and some buildings.

READ MORE:
Month-long public consultation on sale of city council's land at Shelly Bay to get underway
Wellington ratepayers asked to share infrastructure costs for Shelly Bay development
Ratepayers to foot some of Shelly Bay's infrastructure cost

Normally the developer pays for infrastructure. But in this case it has been proposed that the council covers half the cost because the project includes public infrastructure improvements and public space development.

The Shelly Bay development will include 350 new properties made up of a 140-resident rest home, a boutique hotel, 280 ...
STANTIALL STUDIO/SUPPLIED

The Shelly Bay development will include 350 new properties made up of a 140-resident rest home, a boutique hotel, 280 apartments, 58 townhouses and 14 standalone homes.

The council hopes to make most of its $10m share back by offloading about one hectare of its waterfront holdings at Shelly Bay to joint-venture company Shelly Bay Ltd (SBL) for $8m. It plans to sell 0.3ha for $2.5m and lease 0.6ha, along with some buildings, for 125 years for $5.5m.

This means the overall cost to ratepayers will be $2m, the documents say. The council is seeking public feedback on the proposal.

If the deal does not proceed, the council will have to spend $5.5m on Shelly Bay to refurbish its buildings and maintain the existing infrastructure to a minimum standard.

In April, city councillors voted behind closed doors about consulting the public but it withheld the infrastructure costs.

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But Diane Calvert, the council's community planning and engagement portfolio leader, said it was important the public had all the information.

When asked whether splitting the infrastructure cost was a good deal for the ratepayer, she said it had to be looked at within the context of what the development would bring to Shelly Bay, which would become a destination.

Wellington's derelict Shelly Bay, as it looks today.
JOHN NICHOLSON/STUFF

Wellington's derelict Shelly Bay, as it looks today.

Acting Wellington Mayor Paul Eagle said the developers would deliver an "astounding" housing project in return for ratepayer cash.

"This is the only proposal we received to develop this rundown area. Ratepayers will get a stunning waterfront space and public access in return."

The development would also bring in rates revenue of $1.5m a year and would benefit local iwi by helping meet their aspirations with housing, education, social and cultural objectives.

Port Nicholson Block Development Trust chairman Wayne Mulligan, councillor Diane Calvert and deputy mayor Paul Eagle at ...
CAMERON BURNELL/FAIRFAX NZ.

Port Nicholson Block Development Trust chairman Wayne Mulligan, councillor Diane Calvert and deputy mayor Paul Eagle at Shelly Bay. They said Wellington ratepayers would be $1.5 million richer every year if the $500m development proceeded.

The council worked out the city could reap $500m in economic benefits during construction from indirect spending.

After consultation closes on August 14, members of the public will have the opportunity to speak at a meeting with councillors, who will then make a final decision in late September.

THE NEW-LOOK SHELLY BAY

The proposed Shelly Bay development with a view towards the village green.
STANTIALL STUDIO/SUPPLIED

The proposed Shelly Bay development with a view towards the village green.

The road from the Miramar Ave intersection to Shelly Bay will be six metres wide with a 1.5-metre adjacent pathway to allow for two-way vehicle traffic, cyclists and pedestrians.

* A road will be re-routed within the southern part of Shelly Bay to the back of the village green, away from the water.

* Traffic is expected increase from 1200 vehicles a day to 4700. The speed limit at Shelly Bay will remain 40kmh.

The development is a joint venture between the Port Nicholson Block Development Trust and The Wellington Company.
SUPPLIED

The development is a joint venture between the Port Nicholson Block Development Trust and The Wellington Company.

A passenger ferry service will run between Shelly Bay and central Wellington.

* The public stormwater network will be extended and the public wastewater network will be replaced, including a new pump station.

* A new reservoir and water supply pipes will be required.

A map showing the existing land ownership at Shelly Bay.
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A map showing the existing land ownership at Shelly Bay.

THE PROPOSED DEAL

* Wellington City Council and Shelly Bay Ltd. (SBL) will each pay $10m towards the costs of public infrastructure and public space.

* SBL will buy 0.3ha of land from the council for $2.5m to be used for housing. It will also sign a 125-year lease with the council for $5.5m, for 0.6 hectares of land, Shed 8 and the former Shipwright's building.

 - Stuff

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