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Quake expenses confirm Dalziel’s worst fears

A KordaMentha report commissioned by the Christchurch City Council confirms the worst fears of mayor Lianne Dalziel.

The findings are likely to support her call for a renewed consideration of the earthquake rebuild cost-sharing agreement with the government.

Or it may provide moral force for a reconsideration of the scale of amenities the government wants – such as the covered rugby stadium estimated to cost well over $300 million.

The report highlights an expected rise in the total cost of the rebuild, along with uncertainty around the costs to repair the horizontal (in ground) infrastructure and the amount that will be received from insurance for damaged public facilities.

Ms Dalziel says the issues will be discussed by councillors early next year.

KordaMentha says the costs to repair earthquake damage to council facilities are just estimates and need to be reviewed; the council and insurers are at odds and the council has been forced to push ahead with repairs without agreement on final payments; the cost sharing agreement involves uncertainty around the final cost of horizontal infrastructure repairs and the agreement does not cover operating costs of anchor projects like a convention centre. It concludes the council may have to reconsider the extent of some earthquake repairs it has planned.

More by Chris Hutching for NBR NZ Property Investor

Comments and questions

The Council has plenty of quality sellable assets available to potentially fund any additional costs, which need to be a part of the equation if any further taxpayer money is to be considered.

Iy seems to me that the only people in Christchurch who have got their act together is the Anglican Church, despite individuals and organizations going to great lengths to frustrate them.

Did we need Korda Mentha to tell us this? It was obvious. The cost of the dream projects has escalated well ahead of any soft government commitments. And the government has totally lost interest because the Chch seats are lost already.

To be honest, Christchurch is becoming a millstone around the rest of the country's neck.