Opotiki Library redevelopment
- The annual rental cost equals approximately an additional $7 per rating unit, or $2 per $100k of capital value of property, per year.
- A facility measuring approximately 300m2 - that's a similar size to existing library
- Provides same/similar services as existing library.
This option assumes:
- Reduced size of loan
- Council owns entire site and can start building as soon as we get consents.
- Requires new drawings to be prepared and resource consent and building to be obtained
- Provides a limited range of services and benefits to the community
- Puts grants we've already applied for at risk
- Increasing services in the future would cost significantly more and those costs would exceed those in Option 3.
How our debt will increase:
- The increase in costs to service the loan over the life of the asset would offset the savings that we receive by not having to rent the ANZ building. As a result, there is no increase in rates over the status quo (option 1).
- Building Te Tāhuhu o Te Rangi Technology and Research Centre as per our concept plan and drawings
- A facility measuring 712m2
- Significant enhancement of the range of services and benefits we can provide to the community.
This option assumes:
- $4.75 million build cost which includes a generous contingency, including assumptions around ground preparation costs
- Loan funding of $3.25 million, and reasonable assumptions around getting external funding of the balance
- Income of $30,000 from things such as cafe/coffee house and boardroom and hot desk rental.
- We already have detailed drawings
- Resource consent is in place and building consent has been applied for
- Provides a much greater range of services and benefits to the community
- Less risk of losing existing grants we've already applied for
- Likelihood of getting additional external grant in the future.
- Larger loan and annual cost to community
- Council still needs to acquire ownership of neighbouring property.
- We save by not having to rent the ANZ building
- We get income from rental of some spaces in the library
- The cost is approximately an additional $10 per rating unit, or $2.70 per $100k of capital value of property, per annum.
- That's about $3 more per rating unit than the status quo, or a $0.70 increase over status quo per $100k of capital value of property, per annum.
- It would go up by $3.25 million. That means we would go over our "low growth" self imposed debt level in the last year of the Long Term Plan (LTP). Council has already proposed to review the "low growth" status in future LTP's to follow actual rather than proposed growth. If we move to a "high growth" status then we would not go over our debt levels.
Page reviewed: 15 Aug 2019 11:23am