CITY DELIVERY COMMITTEE AGENDA 2 AUGUST 2018 6.3 … · (Jobs) Construction Porirua City 8.3 100 Wellington Urban area 13.7 152 Operation Porirua City 9.6 147 Wellington Urban area

CITY DELIVERY COMMITTEE AGENDA 2 AUGUST 2018

Item 6.3 Page 1

6.3 ECONOMIC IMPACT ASSESSMENT - PORIRUA ADVENTURE PARK

Author: Darryn Grant, Manager City Growth & Strategic Property Kaiwhakahaere Tipuranga Tāone me te Rawa Rautaki

Authoriser: Bryan Patchett, General Manager City Growth & Partnerships Pouwhakahaere Tipuranga Tāone me ngā Pātuitanga

PURPOSE

The purpose of this report is to present to the committee the findings of the Economic Impact Assessment on the proposed Porirua Adventure Park Development.

RECOMMENDATIONS

That the City Delivery Committee:

1. Receive the report.

BACKGROUND

1. Select Contracts NZ (trading as Porirua Adventure Park Limited Partnership) proposes to build and manage Porirua Adventure Park, a biking, recreation and tourism facility on the slopes of Rangituhi.

2. On 2 March 2017 the City Delivery Committee recommended that the Council commence negotiations on lease terms and conditions for the Council-owned land required for the adventure park, in accordance with a number of principles, including that there would not be a negative financial impact on the Council (City Delivery Committee Minute 2017).

3. On 1 February 2018 the City Delivery Committee recommended that the Council agree to enter into an agreement to lease, license and establish an easement over land contained within Te Rahui O Rangituhi, Spicer Botanical Park and Porirua Scenic Reserve for the purposes of the development of a tourism / adventure park subject to a number of terms and conditions (City Delivery Committee Minute 13117). The committee also recommended that, on completion of satisfactory negotiations, the Chief Executive be delegated the authority to sign agreements for the adventure park.

DISCUSSION AND OPTIONS

4. As part of the due diligence being undertaken by Council for the development of the Porirua Adventure Park, Martin Jenkins was engaged to undertake an Economic Impact Assessment of the proposed development and quantify the following:

a. GDP Impact

b. Employment creation

c. Visitor numbers

d. Guest nights

e. Visitor spend

5. The assessment has considered the benefits to Porirua City and the wider Wellington region, including Wellington City, Lower Hutt, Upper Hutt and Kapiti. It has considered the benefits during the construction phase of the project and the benefits arising from the ongoing operation of the park.

6. Information in relation to the cost of the construction and the ongoing operation of the park was provided by Select Contracts NZ. This information has previously been reviewed by


Item 6.3 Page 2

PWC for Council as part of a business case review. The economic activity for construction is based on a one-year build time. The economic activity for operations of the park is for the third year. Activity in year one and two is expected to be lower as the park ramps up. After year three, Select Contracts NZ has forecast growth in user numbers of three percent each year.

7. A copy of the Economic Impact Assessment is attached to this paper, with the assessment calculated by identifying the impact from the direct expenditure associated with the project and then applying regional multipliers to determine the indirect and induced effects of that initial expenditure.

Direct impacts are those that are initially generated by the initial expenditure with

businesses.

Indirect impacts occur when those initial businesses purchase materials, goods and

services from supplier firms, who in turn make further purchases from their suppliers and

so forth.

Induced impacts occur when employees in the businesses providing materials, goods and

services are paid wages and the enterprises generate profits that are then spent on

consumption within the region.

8. Based on the information provided, Martin Jenkins have assessed the following economic benefits from the construction and operation of the park:

GDP ($m) Employment (Jobs)

Construction Porirua City 8.3 100

Wellington Urban area 13.7 152

Operation Porirua City 9.6 147

Wellington Urban area 9.3 171

9. The above results received from Martin Jenkins are higher than the original assessments undertaken by Council (GDP - $40m over 5 years / 90 jobs) for the development and indicate that the development will create significant GDP and employment benefits for both Porirua City and the wider Wellington Urban area. This is a result of the wider expenditure by visitors to the park, as well as the indirect and induced expenditure that will occur in the area.

10. In order to leverage and realise the economic and community benefits of the development, Martin Jenkins has suggested the following areas of focus:

a. Stronger partnerships and collaboration in the development of major tourism projects and visitor experiences.

b. Provide additional investment for strategic marketing and promotions.

c. Maintain support for existing Porirua businesses.

d. Showcase more of Porirua’s unique Maori heritage.

e. Enhance visitor experiences by ensuring natural connections between the city centre and the adventure park.

f. Support further hospitality / accommodation / cultural offerings in the city.

g. Support efforts to increase the local share of employment and work with local education providers to encourage the delivery of relevant skills and qualifications.


Item 6.3 Page 3

ATTACHMENTS

1. MJ Economic Impact Assessment of Porirua Adventure Park Final Report

CITY DELIVERY COMMITTEE ATTACHMENTS 2 AUGUST 2018

Item 6.3 - Attachment 1 Page 4













































































Documents

CITY DELIVERY COMMITTEE AGENDA 2 AUGUST 2018 6.3 … · (Jobs) Construction Porirua City 8.3 100 Wellington Urban area 13.7 152 Operation Porirua City 9.6 147 Wellington Urban area