i HAM ILTON REVIVING THE CBD ii 01 NEW ZEALAND’S PROPERTY VOICE ABOUT US OUR BRANCHES Property Council is a member-led, not-for-profit organisation offering a collective voice for the commercial property industry. Our members include owners, investors, managers, and developers of office, retail, industrial and residential properties, central and local government agencies and other property professionals. Property Council has a national presence. Branch Executive Committees govern our branch and chapter offices in Auckland, Bay of Plenty, Waikato, Hawkes Bay, Wellington, Canterbury, and Otago. For more information visit www.propertynz.co.nz WHAT WE DO Our broad membership of more than 700 companies requires us to consider all aspects of the built environment, and we promote sound policies and requirements that benefit New Zealand as a whole. We advocate for quality urban growth that supports strong national and local economies. We strive to serve our members through research, policy development, advocacy, education and networking event programmes nationally and regionally, raising the industry profile as we go. WAIKATO BRANCH P O Box 335 Waikato Mail Centre Hamilton 3240 PH EM +64 7 210 1535 tracey@propertynz.co.nz NATIONAL OFFICE P O Box 1033 Shortland Street Auckland 1140 Corporate Sponsors PH FX EM +64 9 373 3086 +64 9 379 0781 enquiries@propertynz.co.nz 02 CONTENTS TABLE OF CONTENTS 2 FOREWORD4 INTRODUCTION6 RECOMMENDATIONS8 HCC: A BOLD AND INNOVATIVE ENABLER 10 A CBD MASTERPLAN 12 HCC as an Enabler Being Bold Economic Development Opportunities The Public Realm Built form 10 11 13 13 14 03 Urban design Character Zones Housing density 15 15 15 AN EMPOWERED URBAN DESIGN PANEL 16 CBD BOARD: AN OPPORTUNITY FOR PRIVATE AND PUBLIC PARTNERSHIP 17 Business Improvement District 17 CREATING AN EFFECTIVE HAMILTON ECONOMIC DEVELOPMENT ORGANISATION 18 RELEVANT RESEARCH AND DATA TO MAKE INFORMED DECISIONS 19 CONCLUSION20 04 LET’S ACT NOW Hamilton is at the cusp of change. We have an opportunity to act now and plan for growth in a way that balances urban sprawl with a thriving urban heart. Making bold moves now will future-proof Hamilton to attract residents, businesses, retailers, families and visitors, each with changing 21st century needs. The alternative – inaction or ill-thought planning – will see other cities take its place, capitalising on those looking for investment opportunities outside Auckland. Property Council is hugely vested in Hamilton’s success. Rejuvenating the CBD will not only reap rewards for developers, businesses and CBD residents, it will have flow-on effects to the wider city and regional economies. Globally, people are becoming more engaged with their cities and the issues facing them. People want information about what is happening and how, and they want a say on how to make their city a better place to be. Let’s get the discussion going in Hamilton. We have created this CBD Manifesto to spark debate, bold thinking and most importantly, action. We’re taking the lead and asking others to join us, working together for a better urban environment. Rob Dol Waikato Branch President 05 TOGETHER, WE’RE CREATING BETTER CITIES As a membership organisation representing the commercial property industry across New Zealand, we’re insisting on a more pro-development culture in Government and Local Government – one that insists on greater leadership and courageous decision-making. By recognising the benefit and spin-offs of rejuvenation in areas like Hamilton’s CBD, Hamilton City Council must also understand development – the levers, incentives, timing, and scale. It must also understand how planning roadblocks work to deter, delay and add cost to development. We’re calling for better, closer relationships, bold, innovative thinking and a fresh approach to funding methods so that together, Hamilton’s public and private sectors can attract and leverage off investment to make a better city. Over the years, our Waikato Branch has shown great leadership, dedication and a desire to work with local government officials to improve not only Hamilton’s, but the wider Waikato economy. This manifesto is another proactive, solutions-based call to action. Join us and take part in shaping the future of Hamilton. Connal Townsend Chief Executive Property Council New Zealand 06 INTRODUCTION Cities exist in a natural state of flux. How they respond to this determines whether they evolve and grow, or decline. Both internationally and nationally, the future of fast-growing cities is being determined by a number of factors. Some New Zealand cities, like Auckland, Hamilton and Tauranga, have experienced structural changes to the economy; a move from a primary industry to a service industry based economy, with resulting changes in employment, better amenity, and education and housing opportunities. Despite these success stories, a number of regional New Zealand cities, whose heyday are now behind them, are now struggling for investment and relevancy in the ever-changing economic, political and social environment we live in. Hamilton is experiencing significant change and growth in its northern and eastern suburbs - a reflection of both the private and public sectors’ confidence in the city’s economy. The Central Business District (CBD), is languishing. Issues like alternative retail development, ageing building stock, changing consumer behaviour, and poor transport options have led to Hamilton’s CBD hollowing out. It is no longer the primary place for residents and tourists to visit, work, shop and socialise in. Stakeholders have previously failed to either understand or respond to these issues in time. The negative flow-on effects are obvious; dispersed employment activities, antisocial behaviour, decreased investment, and fewer people in the CBD, leading to less support for retail and hospitality. The CBD also faces a number of barriers that make it less desirable than other areas of Hamilton. These include small and fragmented landholdings as well as multiple land ownership that can deter amalgamation, high land costs and a sustained lack of investment by many CBD property owners over the last 10 to 15 years. Despite these issues and barriers, Hamilton and the Waikato are on the cusp of significant change, an exciting period of transformation and unprecedented economic opportunity. Waikato, Auckland, and the Bay of Plenty, make up the “Golden Triangle”, which will be the economic powerhouse of New Zealand over the coming decades. We can no longer wait for the CBD to regress completely and then allow the market to control its renewal. Now is the time to action bold and innovative ideas. 07 Property Council New Zealand’s Waikato Branch, Hamilton City Council (HCC), and a number of other stakeholder groups want a revitalised and thriving CBD, which: • enhances the positive perceptions of Hamilton • provides a strong economic centre for the Waikato • offers a dynamic cultural, social and tourist hub for Hamilton HCC, together with the private sector, can achieve and implement our proposed ideas. HCC’s previous strategies and plans relating to the CBD, whether through a lack of funding or political will, were poorly implemented or in some cases, not implemented at all. HCC needs to work and consult with the private sector on development and business. Working in partnership creates an opportunity for the best people from local government and the private sector to create and implement bold and innovative policies. Four areas of Hamilton’s CBD need focus: • commercial (how to stimulate development and the economy of the CBD) • physical (developing enabling policies to rejuvenate buildings and the streetscape) • political (developing the right mix of strategies and regulations to enable rejuvenation) • social (providing a safe CBD, while at the same time developing an identity that draws from Hamilton’s heritage and future). Various stakeholders need to come together on these areas, which reflect the acute need for HCC and the private sector to work in greater collaboration than they have previously. Action is needed! 08 RECOMMENDATIONS This Manifesto addresses six key recommendations critical to the growth and rejuvenation of the CBD. The Property Council is calling on Hamilton’s political leaders and policy makers, and the private sector and wider community to coordinate action for the future of the CBD. We want the CBD to be the heart of Hamilton, and the Waikato. 1. 2. HCC: A Bold and Innovative Enabler HCC enables the rejuvenation of the CBD through bold and innovative policies, regulations, and strategies; for example, enabling greater mixed-use development and medium-high density housing in the CBD and on its fringe. A CBD Masterplan HCC, in conjunction with the private sector, develops a CBD masterplan. This will deliver the vision, strategy, and policies for the rejuvenation of the CBD. 3. An Empowered Urban Design Panel The Urban Design Panel is empowered to provide independent and quality design review for all developments, allowing outstanding outcomes to prevail. 09 4. 5. CBD Board: An Opportunity for Private and Public Partnership Establish an empowered CBD Board, made up of local government and private sector members, to shape and champion the CBD. Creating an Effective Hamilton Economic Development Organisation HCC and the private sector establishes a joint economic development organisation that will promote investment, business, and development initiatives in Hamilton. 6. Relevant Research and Data to Make Informed Decisions HCC undertakes more objective research to make informed decisions. 10 HCC: A BOLD AND INNOVATIVE ENABLER Cities across the world today are grappling with the challenge of how to upgrade their CBDs and make them relevant again. Over the last decade, significant development in Hamilton has taken place outside the CBD, hollowing out the city to create a doughnut effect. Where there were once tenants, there are now a substantial number of empty commercial buildings in key locations. This is not new for New Zealand’s urban centres. Tauranga, Invercargill, and pre-earthquakes Christchurch are examples of this phenomenon. Former Council plans are also to blame, as they contributed to commercial development outside the CBD. Hamilton’s CBD has stagnated and commercial property owners are struggling to attract long-term and viable tenants, especially those with large staff numbers. This stagnation has been a catalyst for a range of negative economic and social flow-on effects in the CBD. Despite this negativity, Auckland’s “growing pains” are an opportunity for Hamilton to seize upon. We cannot be passive or indecisive while investors seek alternative opportunities outside of Auckland in Tauranga, Wellington, or Christchurch instead of choosing Hamilton. We believe that action is essential to activate and rejuvenate the CBD and to attract investment to Hamilton. HCC AS AN ENABLER If the CBD is to achieve its potential, HCC needs to put strategies, policies and rules in place that enable investment and development. It needs balanced rules and trust in the private sector. If Hamilton is to attract businesses into the CBD and grow its economic and social prosperity then a serious conversation needs to take place about its building stock. The CBD is in a chicken versus egg situation. Tenants prefer high quality office space, but commercial property owners are unwilling to invest in their aged low-grade buildings because of the current CBD environment. HCC must develop targeted incentives and enablers to allow property owners to upgrade their buildings to attract tenants. While we support incentives like the Hamilton City Historic Heritage Fund in principle, we believe HCC needs to do more. In particular, we advocate for a rates rebate 11 scheme while building owners are undertaking upgrades or earthquake strengthening. Other incentives can be explored. In some cases the sheer cost of upgrading or strengthening outweighs all else. Owners should be able to demolish their buildings, particularly as demolition is the first step in a redevelopment process. New developments offer the opportunity for bold, innovative new design-particularly if an empowered Urban Design Panel is effectively used. HCC must enable building owners to make the necessary decisions around demolition. We need outcome focused planning and consents for projects that will contribute to the good of the CBD. BEING BOLD Hamilton’s CBD needs boldness and innovation to arrest its stagnation. Property Council supports HCC thinking outside the square and looking at the following short-term options (1-5 years) to kick-start the rejuvenation of the CBD: • Consolidate the CBD and enable mixed use development, like apartments or townhouses on its fringe. A higher residential population closer to the CBD will create demand for central city amenities. • Sell under-utilised HCC land for private development. Under-utilised land is not providing benefit for HCC or for the wider community. • Enlarge Victoria Street South and Hood Street nto the Waikato’s prominent entertainment and lifestyle precinct. • Advocate for greater connectivity with tertiary providers in the Waikato. This will draw more students into the central city from the isolated existing campuses, who will increase diversity and population in the CBD. • Encourage a family-friendly CBD for tourists and residents. This is an inexpensive way to draw people into the CBD. • Further the opportunities for public private partnership and joint ventures. • Provide active edges around Civic Square including Garden Place to encourage vitality and invite public participation in the space. 12 Hamilton is a city of entrepreneurship: a city with a history of people who challenge glass ceilings and think outside the square. A CBD MASTERPLAN Hamilton needs a masterplan for its CBD that provides a robust vision for the future and certainty for stakeholders. The vision needs to build on what makes Hamilton great and have an inter-generational timeframe with key deliverables per decade. A CBD Masterplan will need to be closely aligned with HCC’s other strategic priorities, policies and rules. Clear milestones, direction and accountability will give the private sector and the wider community long-term confidence and certainty. Property Council believes that a CBD Masterplan needs to focus on the following strategies and outcomes: • Economic development opportunities • The public realm • Built form • Urban design • Character zones Underpinning this focus is the need for: • Providing a strong long-term vision that provides brand identity for the CBD • Developing and providing the means to implement key urban rejuvenation projects • Having robust synergies with other HCC planning, policy and strategy documents • Providing means to improve the liveability and sustainability of the CBD • Using robust and objective research and data in its development and the projects, policies and strategies 13 ECONOMIC DEVELOPMENT OPPORTUNITIES Hamilton is a city of entrepreneurship: a city with a history of people who challenge glass ceilings and think outside the square. Whether it is in dairy farming advancements, politics, culture, or sports, Hamilton punches above its weight. We need to continue this tradition by offering a CBD that attracts international and innovative business, creates opportunities for the talent trained at our tertiary education facilities, and provides employment for our retail, cultural and tourist sectors. These industries provide the building blocks for developing the wealth of Hamilton’s CBD, Hamilton, and the entire Waikato. What will enable these industries to grow is a robust and stimulated property market. The CBD needs to be open for development. HCC needs to enable development and planning rules that will foster a market that is attractive for investment. Property Council recommends that HCC explores ways to streamline processes that will enable innovative and significant developments in the CBD to ensure Hamilton is competitive both regionally and nationally. THE PUBLIC REALM With the Waikato River, lake, world-renowned gardens and a range of parks and cycle trails at the CBD’s doorstep, Hamilton is a city designed for the open-air lifestyle. Yet it fails to utilise these attractions through poor connectivity. Hamilton prides itself on the Waikato River, but the CBD does not enable easy access to it. We acknowledge the work that HCC has undertaken with its River Plan and welcome its focus on improving access from the CBD to the Waikato River. The River Plan is not a silver bullet for the CBD; it needs to be treated as a separate plan that supports and is aligned to the CBD Masterplan The CBD Masterplan should provide more detail than the River Plan, which focuses on the interaction between the Waikato River and all of Hamilton. In particular, the masterplan needs to encourage and incentivise laneways for development or rejuvenation that connect the CBD and the Waikato River. Laneways offer opportunities to leverage economic growth. It is crucial that redevelopment occurs at the river’s edge, parks and HCC owned access ways, to improve connectivity. We also support the development of additional shared spaces throughout the CBD. Over the last few years, shared spaces have provided the impetus for rejuvenation and economic 14 growth in key precincts of Auckland’s CBD. HCC must allow for and enable bold and innovative urban design. The CBD needs a dynamic civic space. Whether it is for special events, informal activities, celebrations or as an open space to walk through, civic spaces must be dynamic, flexible, and resilient, with active, open edges. In its current form, Garden Pace, adjacent to Civic Square, fails to provide this. For the CBD to rejuvenate, it is crucial that these civic spaces undergo significant change to reflect Hamilton, its heritage and future. While we welcome HCC’s focus on improving connections along the Waikato River, we believe they should focus on those directly near the CBD first, for example Ferry Bank. There is a risk that spreading funding over too many projects along a geographical distance will reduce the benefits of these investments. By concentrating funding in or close to the CBD, HCC will maximise the return on investment and deliver an efficient, and quality outcome. BUILT FORM HCC must implement a clear and concise District Plan that enables CDB development and investment. We acknowledge and support policies and protocols for quality urban design. However, there is a fine line between enabling and overly restricting. Property Council believes that HCC is giving the development community mixed messages. For example, there are no development contributions for CBD projects, but there are a range of planning rules and consenting practices deterring CBD investment. HCC needs to focus on how it can encourage development that aligns with the overall vision of the CBD. Property Council supports the upkeep, protection and refurbishing of quality heritage buildings to celebrate the past and contribute to the future. In Hamilton however, low-grade office buildings dominate the CBD streetscape, many of which are empty, attracting low rents and have limited heritage value. We should not see building demolition or repurposing as a problem, but as a solution. Cities evolve, and property owners should be able to demolish buildings with limited heritage value that are illsuited to the changing needs of the CBD and its tenants (many of whom are seeking A or B grade office space). An empowered Urban Design Panel should provide a mechanism to make sure that quality development does take place. 15 URBAN DESIGN Property Council believes quality urban design is more than an aspirational outcome for the CBD - it must be a necessity. To achieve this, urban design can also support the development and redevelopment of new and existing buildings. This will enable property owners and tenants to maximise the efficiency of space, and improve the liveability of places. HCC must develop incentives to encourage building owners, developers, and investors to meet or exceed quality urban design outcomes that will provide a bold and innovative urban environment for Hamilton. One of the ways that HCC can do this is through empowering the Urban Design Panel. CHARACTER ZONES In Property Council’s Initiatives for Hamilton publication, we called for the CBD to be divided into specific zones for employment, education, commercial, cultural, and social activities. We repeat this call to action. These zones would become focal points in a flourishing CBD, and provide opportunities for people to combine activities like visiting the Waikato Museum, shopping, or having dinner. People will visit a flourishing CBD that has a mix of cultural and entertainment focal points, is clean and safe and has a dynamic aesthetic. HOUSING DENSITY To complement these zones, we also support mixed-use development, like apartments or townhouses, in underutilised buildings or land, which will increase the demand for better CBD amenities. The way urban New Zealanders choose to live is changing. The idea of a quarter acre paradise of fifty years ago is evolving and a culture change is occurring. The market for dense living (whether townhouses or apartments) is growing and includes younger generations of New Zealanders, immigrants and older people downsizing. Residential development is riskier than commercial development. Therefore HCC needs to incentivise residential development to mitigate those risks, for example remove minimum car parking requirements and reduce the financial contributions. These actions would help to stimulate residential living in the CBD enormously, and in turn the economic and social vibrancy of the CBD. 16 AN EMPOWERED URBAN DESIGN PANEL Property Council believes that HCC must empower its Urban Design Panel to offer more guidance and services for developers to rejuvenate or build new buildings. Currently, we do not believe that HCC allows the Urban Design Panel to achieve its full potential. We would like to see the Urban Design Panel able to: • Provide additional urban design experience during the development proposal process • Allow rule exceptions where the outcome is positive for the city • Assist in developing a successful and attractive CBD for the community • Potentially minimise time delays for lodged resource consent applications by assisting to resolve complex issues early on in the design process, prior to lodgement • Independently peer review projects To achieve its full potential, the Urban Design Panel must work under robust guidelines to make sure its decisionmaking processes are consistent. The Urban Design Panel should be unable to say “no” to a project but instead would find a way to say “yes”, including offering alternative design suggestions. A positive relationship between the development community and an empowered Urban Design Panel will benefit the wider community. One of the national issues facing the property industry is a lack of consistency and in some cases the relevant planning and consenting Local Government officers providing contradicting advice. An empowered Urban Design Panel can provide consistent advice and co-ordination between different Local Government departments during the consenting process. The Urban Design Panel will be able to provide guidance on how the development proposal fits within HCC’s statutory and non-statutory plans and strategies, like the District Plan and the CBD Masterplan. For the Property Council, urban design must be at the forefront of all projects. Quality urban design does not necessary follow a rulebook; therefore an empowered Urban Design Panel must encourage and reward innovative projects enhance the CBD. 17 CBD BOARD: AN OPPORTUNITY FOR PRIVATE AND PUBLIC PARTNERSHIP Business differential rating is unfair for commercial property ratepayers as it is not transparent and can be a disincentive for investment. Property Council advocates for business differentials to be abolished and replaced with a targeted CBD rate, to get more value from the rates spend. In order to achieve greater transparency and accountability of the CBD rate expenditure, we support the establishment of a CBD Board, with a mixture of Local Government, commercial and residential property and other private sector and community ratepayer representation. The CBD Board should be the key advisor to HCC on: • Assisting to plan, develop, shape, implement and monitor the delivery of relevant policies and strategies of HCC • Acting as think tank and sounding board on CBD transformation projects • Providing leadership on CBD projects that are funded by the CBD targeted rate • Ensuring quality and value for money in all urban rejuvenation projects, from inception to completion • Acting as the CBD Champion for Hamilton and the Waikato region For the CBD Board to work effectively, it is crucial that there is an effective and strong relationship between the Board and HCC. Furthermore, HCC must have a dedicated team of officers who support the functioning of the Board and the decisions that it makes. These officers must also provide the connection to the relevant HCC strategies, policies, and rules to avoid issues that may arise. BUSINESS IMPROVEMENT DISTRICT The newly empowered Urban Design Panel will act as one arm of the CBD Board. The existing Business Improvement District (BID), with a focus on improving the retail business environment, will be the other. As a vehicle for retailers to co-ordinate activities and strategies, the BID will help to make the CBD more attractive to shoppers and increase visitor numbers. The BID will help provide Hamiltonians with a reason to come to the CBD and explore it, as well as helping to turn around the perception and reality that the CBD has stagnated. 18 CREATING AN EFFECTIVE HAMILTON ECONOMIC DEVELOPMENT ORGANISATION Over the next 30 years, forecasts show Hamilton undergoing profound economic and social change alongside population growth. These changes will place significant pressure on existing infrastructure as well as requiring new capital infrastructure investment and the subsequent ongoing operating expenditure. Added to this, are funding issues. In particular, how do we make sure that crucial issues like value for money, project choice, equity, revenue sources are critically assessed? Hamilton also competes with other major centres like Auckland and Tauranga for investment. If potential businesses receive better service delivery, cost-effectiveness and a positive inviting environment, they are more likely to invest in Hamilton. With Auckland forecasted to experience “growing pains” as the city grapples with an everincreasing population and pressures on underdeveloped infrastructure, Hamilton, and its CBD, has an opportunity to sell itself as a better investment option than Auckland. Property Council supports a Hamilton Economic and Development Organisation, a partnership between HCC and the private sector. We believe that the aim of this organisation should be to: • stimulate economic growth and development in Hamilton • enable efficient, effective and affordable infrastructure • develop a thoroughly efficient and integrated planning process that is flexible and robust enough to manage the future growth of the city • enhance the lifestyles of all Hamiltonians By working in partnership, HCC and the private sector can assess the infrastructure and development needs of a growing Hamilton to future proof wherever possible. This partnership must enable the mechanisms for economic growth by providing appropriate, affordable, and flexible commercial and industrial zonings and planning provisions. Property Council supports a quality working relationship based on mutual trust between HCC and the private sector to make sure that the organisation reaches its potential. Positive collaboration is the key, between not only HCC and the private sector but also the organisation and the community. It is crucial that the organisation develops on-going engagement with the community to create awareness, support, and understanding of what it is trying to achieve. 19 RELEVANT RESEARCH AND DATA TO MAKE INFORMED DECISIONS In an increasingly competitive economic and social environment, people require information to make informed business and personal decisions. Crucially, there is a lack of available economic data and modelling about Hamilton for potential investors. Without this information, Hamilton could miss investment opportunities. Property Council would like to see HCC obtain the following data on a regular basis: • How much shoppers spend and where • Regular and up to date pedestrian counts throughout the CBD • What do office workers do in their lunch breaks • Work place demographics • What are the employee absenteeism rates for Grade A & B buildings compared to lower grades • Up to date CBD valuations to analyse historical and future trends • The ownership demographics on CBD properties Partnership with local tertiary education providers and researchers could help source some of the data mentioned above. This information would provide insight into the economic and social trends in the CBD and help to assist decision-makers. The information would also benefit retailers, business owners, real estate agents, developers, investors, planners in ascertaining the right business approaches and decisions to take, which ultimately will benefit the ratepayer as a consumer in the CBD. 20 Positive collaboration is the key between HCC, the private sector and the community. CONCLUSION Hamilton is on the cusp of exciting period of growth and development, but it is crucial that its CBD is not left behind. The opportunity for bold and innovative visions, plans, projects, and strategies to rejuvenate the CBD exists today. HCC and the private sector must work together to release the full potential of this opportunity. Time for less talk and more action and bold decisions! Bold initiatives will pay off in the long term and Property Council recommends: • HCC takes an enabling perspective in allowing CBD rejuvenation with a focus on desired outcomes in the medium to long term and offering a supportive regulatory environment • An economic development organisation is established, that works with the market and attracts and promotes investment in the whole city • A CBD Board • HCC works with the private sector more on any initiatives involving business and development • An empowered Urban Design Panel • Retail co-ordination and assistance • More research and data to make informed decisions • Mixed-use development and medium-high density housing in the CBD and on its fringe • The creation of a CBD Masterplan for the city that will create key milestones and priorities that can be measured and monitored • The creation of a strong vision, which includes a view to the long-term, and brand identity • Improved connectivity • A keen understanding of what Hamilton and the Waikato want and aspire to for its CBD and regional capital 21 We all need to think about micro and macro solutions, for example: • How can we take more advantage of the road infrastructure investment in the Waikato • How can we develop more student living options into the city • What can the city do to assist and encourage educational tourism • There is significant overseas funding coming into the country at present, what are we doing to attract this funding into the Waikato • There needs to be better balance between urban sprawl and density. For too long the focus is on urban sprawl. There needs to be greater encouragement of mixed-use developments and density in the city. 22