Category Archives: Architecture

Commercial residential, 143-193 Moray Place : ODT bias, ignores arguments of opposing legal experts

THUS we gather that the owners/editorial team of the Otago Daily Times have deemed Anthony Tosswill’s proposal for a tall fat Moray Place apartment building (commercial residential) is worthy of being built. Ra Ra ODT.

If you (ODT) want to print half the story, presume away…. to Not be the independent courier of what is public information contrary to the arguments of the greying Mr Page, Counsel for Mr Tosswill’s NZ Horizons Hospitality Group Ltd (widely suspected as a vehicle for Asian finance, yet to bring even one of “12 hotels” on his South Island wish list out of the ground – funny that).

For your attention :
The legal submissions of Ms Semple, Counsel for Millennium and Copthorne Hotels New Zealand Ltd (owner of the 3 star Kingsgate), an affected party.

Ms Semple maintains that the application cannot be lawfully unbundled.

Legal Submissions on behalf of the Millennium and Copthorne Hotels
Casebook for the Millennium and Copthorne Hotels

The legal submissions of Mr Hardie, Counsel for Misbeary Holdings Ltd are not yet available online at the DCC website.

[click to enlarge]

LOLOL

At Facebook:

If the independent commissioners agree with Mr Page then it’s “See you in Court, Buster”.

Posted by Elizabeth Kerr

This post is offered in the public interest.

3 Comments

Filed under Architecture, Business, Construction, DCC, Democracy, Design, District Plan, Dunedin, Economics, Finance, Heritage, Housing, Infrastructure, Media, Name, People, Pet projects, Politics, Project management, Property, Proposed 2GP, Public interest, Resource management, Site, Tourism, Town planning, Transportation, Travesty, Urban design, What stadium

LEAVE the Statue Alone —gormless university can piss off

At Facebook:

FFS pull your head in, lady.

This is a public statue properly positioned in a public space (Queens Gardens).

—NOT a trifle to be STOLEN by ivy-league wankers to decorate their private vajayjay !!

There is Nothing wrong with city brothels fronting public spaces.
Or, city brothels fronting public works of sculpture.
What is more Human, Egalitarian and LEGAL than that.

At a public forum this week the Dunedin City Council was asked for its support to move the statue of Dr Donald Stuart from its place in Queens Gardens to an undecided location near the University of Otago clocktower. Dr Stuart was the minister of Knox Church for 33 years and led the congregation until he died in 1894. (ODT)

Related Post and Comments:
30.8.15 La Maison House of Pleasure, Queens Gardens —then and today

Posted by Elizabeth Kerr

This post is offered in the public interest.

9 Comments

Filed under Architecture, DCC, Democracy, Design, District Plan, Dunedin, Heritage, Hot air, Media, Name, New Zealand, People, Pet projects, Politics, Project management, Property, Proposed 2GP, Public interest, Resource management, Site, Tourism, Town planning, Travesty, Urban design

Apartment hotel proposal has FATAL Flaws : ODT offers Flimsy Poll

Updated post.
Tue, 7 Aug 2017 at 2:58 p.m.

We (Dunedin) are confronted by a poorly detailed, plonk-down apartment building proposal that we suspect is fronted by an agent for Asian developers –it would not be unusual for such a proposal to be offered on the strength of tainted money looking for safe haven in the South Pacific.

Our gullible country.
The gullible shiny pants Grow Dunedin partnership.
Our ever so gullible city council under the leadership of cull-cat Cull.

A massively over-height apartment building with a frilly hard-to-read podium base is proposed —a building that may never see a five star hotel as the anchor tenant (never believe unquantified/unqualified pitches from used car salesmen, if all they offer is a Price plucked from the air).

Not so long ago large tracts of New Zealand land were bought and sold for glass beads and muskets.

A lot can happen between resource consent being granted and a deathly, failing, improperly costed build.

Is Dunedin City Council about to find out.

Beware the gift horse.
It turned out Dunedin disliked the hocks of the last one (41 Wharf St), ridden by a little cardigan-wearer. The local suits were paid to make the waterfront tower seem generous, rousing and necessary. Ha-haaa.

At ALL times, the Dunedin City Council MUST stay acutely awake despite its needful dependence on independent commissioners and independent professional advisors – the latter advisors, along with some council staff, appear to have greatly missed the Fact that the minimal concept plans presented for 143-193 Moray Place DO NOT provide a workable building; or a building compliant with district plan objectives, policies, rules, and anticipated environmental results ….or prevailing traffic standards.

Oh dear. ‘So much’ [$$$] for the independent advice. Yes, expensive use of expert and staff time to massage the applicant dream – to no convincing or winning effect.

Further, Dunedin City Council MUST be prepared to APPEAL the outcome of the decision-making process should it wish to AVOID being left with another expensive DEBT VEHICLE in the form of one unfinished and or leaky building …..as the collapsed companies, and dusty heels of run-away developers and construction personnel disappear back to Asian shores, far away from Lake Tekapo ….. dangerously constructed, whole or in part, as a further burden on beleaguered Ratepayers of this fair city.

“What a stupid thing to assume!” you thunder.
“How? On what grounds?”, you chide.
“Dunedin NEEDS a five star hotel!”, imperiously.

You think it’s that simple ??
You’re about to be done over, Buds.

The inference being, oh great apartment hotel supporters, that all that glistens in green-tinted glass is gold, or might be a five star hotel. Yeah right.

It never was. The gold, I mean.
The five star hotel, I mean.
A hoover-up of NZ cash to offshore parties who remain anonymous throughout planning and consenting, and construction and building operation; all supported by the errant notion of immigrant labour and (imperfect) imported materials.

You might as well ask now, How MUCH will the Dunedin economy make ($$$) on this “slap in the face” to the community owned district plan (statutory), and the (strategic) spatial and the central city plans which are publicly consulted policy directions informing the city council’s annual and long term plans.

Not much.

****

During five days of evidence and submissions, one knowledgeable submitter, Mr Russell Lund – well up on construction management, hotel building costs, the visitor accommodation market and investment patterns, and the risk and liability to local authorities in consequence – carefully outlined the quandaries which for various councils around New Zealand have become money-losing Unalterable Fact.

In the original written submission for himself and Suzanne Lund (affected property owners), Mr Lund asserted:

The “assessment of effects” is hollow and of no substance. Under the Act, the assessment of effects is required to be just that, an assessment of effects on the affected properties and tenants. Incredibly, the assessment makes no attempt to examine the effects on all the affected parties.

This, of course, is echoed in independently written and voiced submissions by many opposing the application; and curiously, it is underlined in evidence given by Mr Don Anderson (planning consultant) and Mr David Compton-Moen (urban design, visual amenity consultant), for the applicant.

My own submission to hearing states:

We can’t take what is offered [from the applicant] on trust, because it is incomplete and imprecise; therefore the assessment of effects is difficult to pin down to anything concrete and remains unhelpfully superficial – this was “the work” the applicant was to table for us, we thought, to generously persuade us that moving beyond the ‘norms’ of height in this Dunedin location has measurable benefits against other sites or, through strong honest examination of design alternatives for this site.

I am open to being persuaded. It is expensive to do that persuading. However, it has to happen in other city centres in this country. For an expensive building, isn’t it worth doing the budgeting for preparation of your case – to get the result you want, which is consent to subdivide and build. These are open questions but they lie at the heart of A for architecture as the practical art and science of building economics and professional practice. Behind and in front of the commercial facades, that must have depth of delivery. […] And so I come to the white building model here [a 3D-printed solid plastic model of the proposed building, of hand-held size, put into evidence by Christchurch architect Thom Craig], and the drawings presented by the applicant. There appears to have been too much time spent on merely diagrammatic ‘entreaties’ to architectural form and texture without hacking into 3D investigation. There is not one clear drawing of the way the podium can work for the public or the ‘retailers’ or ‘exhibitors’ – or indeed the people staying at the hotel, servicing the building functions and or using vehicles on site. We get an idea ‘about it’, a not convincing one, there is too much guesswork to do. And so the commissioners’ questions have been rather intense.

****

Now, back to the points the Lunds are making. In their original submission on the application, Mr Lund says:

7. I have serious concerns about the expertise and amount of resource that has gone into assessing the feasibility of the project. In the last year, the Otago Daily Times advised the developer, Mr Tosswill of Horizon Hospitality, had indicated that the cost of the project, which was then 200 rooms and 52 apartments was $50-75M. The proposal now is for 210 rooms and 66 apartments, which is not substantially different. The car parking and front of house areas are similar to the original application. The application confirms the hotel has a gross floor area of 20,835 m2.
In my opinion this hotel will be not built for anything less than around $100M, and this casts serious doubts over the viability of the scheme.
Evidence of this is found for the building costs of the much simpler 200 room 4 star Novotel Hotel being built at Christchurch airport after a competitive tender process (and utilising an Asian fabricated structural steel structure). It is well known in the building industry that the tender costs received for that very regular and efficient 7 level hotel were $4,500-5,000 per m2. The Novotel is a filing cabinet design, that is, it is a completely regular rectangular structure which provides the most efficient floorplates and the best wall to floor ratio, ie the least amount of exterior wall enclosing the maximum possible amount of interior space. The Novotel has no balconies.
The applicant’s proposal is far less efficient, and therefore more costly per m2, as it is effectively three blocks grouped around a central core, but the blocks themselves are not rectangular, but have recesses, and there is a significant amount of extra cost with most rooms having screened “smokers” balconies, which entails effectively, 2 exterior systems, one for the rooms, and another enclosing the balconies.

8. The application confirms there are 16,136 m2 of above ground (habitable or hospitality space) and 4,687 m2 of below ground, back of house / car park space. At a cost of $2,200-2,500 per m2 for the below ground floors, and $5,500 per m2 for the above ground space, the proposal has a construction cost of over $100m, excluding land, furnishings, design marketing, et al. The total budget excluding GST will be around $130M. A feasibility study will typically have to include a development margin of at least 20 %, preferably 25 %, if any sort of lender is involved. This means the end value of the project will need to be at or over $160M. If the best case scenario is adopted and Mr Tosswill is able to convince Chinese or other overseas investors to pay the current market value in Queenstown for premium, new managed hotel rooms and apartments of $10,000 per m2 – for a hotel with an unproven demand in Dunedin, it is still not enough.
Selling all the apartments and hotel rooms will yield about $90M, which is a long, long way from the $160M end value needed. The parking and lower public floor spaces on a yield basis will have a value of around $10M, that might get the project to $100M. Mr Tosswill in earlier reports stated that the value was around $90M, so while there is broad agreement on the likely end value, the estimate of the cost is not close to reality. Mr Tosswill may be planning to bring in a Chinese construction company who will park a retired cruise ship at the waterfront for the duration of the project and have their workers stay there, but they will be subject to the same minimum wage laws, working conditions and health and safety requirements that local companies face, which will dramatically reduce any cost benefit from using overseas labour. (The idea of having a cruise ship accommodating Chinese workers is not fanciful – the Chinese government offered to repair the damaged sections of SH1 after last year’s Kaikoura earthquake using that same method, and did not require any New Zealand labour resources, but the Government decided that this was politically unacceptable). One hopes it would be also unacceptable to have a Council endorsed project built using essentially, forced labour.

9. There is sufficient doubt around the financial viability of the project that the applicant should provide some evidence that the entire scheme is not in fact fanciful, but makes economic sense, and provide details about the proposed ownership model, which is highly relevant to Council, in light of their liability which is discussed below.

10. Mr Tosswill may think he is able to make savings from current building costs by utilising Chinese products, but many Local Authorities around New Zealand are very wary of various untested products as there have been many failures for which Local Authorities ultimately end up bearing the cost of.
This raises another issue which is the massive liability that the building control division of the Dunedin City Council will be exposed to, in relation to its building consent approval and compliance monitoring. The experience of the QLDC in recent years is extremely relevant : A large number of hotel and apartments have been built in Queenstown and the individual hotel rooms and apartments are sold off individually. A body corporate is then responsible for repairs and maintenance. The developer has no long term or permanent stake in the completed structure, and therefore no incentive to specify materials and pay for quality standards with the long term in mind. As Warren Buffet has said, “show me the incentive and I will show you the result”, and the result for QLDC has been an ongoing series of legal actions brought by Body Corporates against Council, alleging that Council was at fault in some form, and as they are the “last man standing”, the Council have inevitably had to pay substantial figures. [I have] experience of several of these, having repaired one major complex in Queenstown at a cost of several million dollars, and provided cost evidence in regard to two others, also in Queenstown in the last year. It should be remembered that QLDC has a 7 metre height limit, but despite this, on complexes less than a quarter of the size of the proposed hotels, the cost to repair has run to millions. QLDC has advised this year in the Otago Daily Times that it has now completely drained its reserve fund for remedial building work, and any further costs will need to come directly from ratepayers. It has spent $3.6M just on legal fees for remedial building liability cases, which will rise to close to $4M by the end of this year.

11. At the Hearing, in submission, some proposals will be presented to show how the design liability and weathertightness risk to Council and ratepayers can be mitigated in the unlikely event that the proposal is given consent and such consent is upheld in the Environment Court.

Proposal 1 : A bond be posted with Council to cover sufficient funds to get the building to completed weathertight envelope and have the podium and all external works completed in the event the project is halted.

Proposal 2 : The applicant provide a Owners Protective Professional Indemnity, and have DCC named as an insured party on the policy. This is to protect indemnify the DCC against any claims brought against them in relation the building consent process, compliance monitoring or any matter for which they are liable for.

****

The applicant tabled NEW evidence at the hearing, from Infometrics. At its website, Infometrics (NZ) says it “provides industry, regional, and general economic analysis and forecasts that assist organisations in making their planning, policy, and strategic decisions”.

In the Lunds’ submission to hearing under the subheading ‘Dunedin Hotel Economic Impacts – Ongoing GDP Effects’, Mr Lund says:

….Infometrics assume that the 64 apartments will all be in the hotel pool, but acknowledge this is unclear. This significantly increases the GDP contribution as it raises the income of the hotel by around 40%, assuming conservative tariff rates of $250 per night and $350 per night per apartment. Infometrics also assume that there will be no “crowding out” of the existing activity, ie ALL guests would otherwise have not come to Dunedin had this hotel not been there. This is an unrealistic assumption.
In my opinion this report is an example of tailoring assumptions to achieve the desired outcome.
At Section 2, the “impact” of the construction phase is estimated at $45.6M in total, but based on the “key assumption” that there is capacity in the construction sector to build the hotel without crowding out other investment”. This appears to mean that if other projects are delayed, there is in fact no benefit at all because $63M of other projects will simply be displaced by the alleged $63M cost of this project. History shows that in Dunedin, Clients such as the DCC, University and some private clients keep a close eye on the state of the market. Many Ministry of Education projects have strict cost guidelines, and will not proceed if they are over budget. There have been examples of work deferred in Dunedin when the market is busy, and the Post Office Hotel is one of them. The Owner Mr Geoff Thompson, deferred the construction of the hotel for several years when he first owned the property citing the overheated construction market, due to the construction of the $220M Milton Prison project in 2005-2007.
At the present time, there is a high level of commercial construction activity at present, witnessed by the fact that there are main contractors from outside Dunedin performing the 2 largest projects in Dunedin (The Dental School and the University Science 3 project). There is every likelihood some projects will be delayed due to the high level of activity.
The report assumes that 21.1M of the $63M, or a third of the cost, will flow into the local Dunedin economy. This would be on the basis that local companies and suppliers are employed, but this is far from clear, given the estimated cost of $63M. The only way the cost could be anywhere near this level is if virtually all of the materials were low cost imports, and quite likely a proportion of the labour cost component.
The only significant material that will be made locally is concrete, and it is only the basement levels that will be predominantly a concrete structure. If out of region companies were employed for work to do such trades as painting and carpentry, as they were at the Forsyth Barr stadium, then that figure will not be accurate.
Infometrics then ascribe $16.1M to the “second round of economic effects” but acknowledge there is some “leakage of spending outside the city”. If an outside main contractor, or even an overseas contractor completes the work, they will very likely bring with them their out of town networks of subcontractors and suppliers and there will be much less than the $16.1M as the second round of effects. Having completed many projects out of Dunedin, I have first hand knowledge of the negligible economic effect of construction on the region concerned. Generally, goods and services are sourced from habitual suppliers with whom there is an ongoing relationship, and only the small consumables are sourced from local suppliers.
Mr Tosswill should clarify what the intention is regarding the construction of the hotel, and if that is not forthcoming, then he should at least confirm what type and form of construction contract will be used as that perhaps more than anything will determine whether there is the possibility of a meaningful local business component.

On ‘Construction Cost’, Mr Lund refers the commissioners to the Lunds’ original submission, continuing with:

Further facts about construction
Examples of risk from imported products
FCC (Fletcher) budgeted to use Chinese sourced bathrooms in the Novotel Christchurch projects. Did not work. Has cost FCC $2M extra (unbudgeted) to get prefab bathrooms built locally in Canterbury. The cost is $26,000 per bathroom.
Chinese steel : there are 2 major CBD projects underway in Christchurch that are steel structures using Chinese fabricated steel. On one project the steel is 12 weeks late and on the other it is 16 weeks late. The Chinese suppliers had committed to make the steel, then out-sourced it to another firm without advising the contractor, and the delays have resulted. On one of these projects there is now legal action between the Engineer and contractor because of the nature of the steel does not conform to the specification.
There is a further major dispute litigation on another major project now completed due to extreme delays with the steelwork and external cladding. The project was around 10 months late, and the Owner lost the anchor tenant (The Government) due to the delay. That project was tendered on the basis of using a large degree of imported materials from China in association with a large state run Chinese construction company, but the project was so disastrous (financially and in terms of market perception), involving a loss of 8-15M on a $50M project, it has caused the company to withdraw from large scale commercial construction and focus on project management.
External Cladding : There are only a very small number of NZ firms with the capability to design and build the curtain walling, and they have a huge backlog and extremely onerous business terms that will not be acceptable to any funder or main contractor, so the Owner will probably need to contract with them direct, and take on this risk.

These important matters aside, the legal submissions brought to hearing by Ms Lauren Semple (for Millenium & Copthorne Hotels) and Mr John Hardie (for Misbeary Holdings Ltd) blew the application out of the water; so did the transport evidence to hearing by Mr Andy Carr (for Millenium & Copthorne Hotels) to which Commissioner Mr Stephen Daysh responded by asking if the problems (such as summit points, swept paths, access to basement parking, onsite coach travel, and truck travel as well as loading access) pointed out by Mr Carr in his assessment of the proposed building’s perimeter road were “fatal flaws”? Yes, was the direct reply. Refer article: Traffic problems at hotel (ODT 3.8.17)

The hearing is adjourned until 17 August.

All ODT can do is offer a flimsy and inconsequential readers’ poll.
Not Based On Reality. Go ODT! LOL

█ All application documents, reports, evidence and submissions for 143-193 Moray Place – Non-complying activity – LUC-2017-48 & Sub-2017-26 at this link.

Related Posts and Comments:
● 11.7.17 “Fat” gawky Hotel and Apartment building : Questionable design even with 4 floors lopped off
● 14.5.17 RNZ reports July hearings for proposed hotel apartment building [comments by Mr Tosswill]
● 4.5.17 Submissions close 10 May : Proposed 17-storey, est. 62.5 metres-high Moray Place hotel/apartment building
● 7.4.17 Proposed hotel *height and design* —the very least of it #sellingoursouls
● 5.6.17 Application lodged for FIASCO Hotel by Tosswill #DunedinWrecks
● 18.12.16 DCC set to take away CBD car parks without Economic Impact research
● 15.10.16 Battle of the hotels : DCC meat in the sandwich (unedifying)
● 5.10.16 Dunedin bauble #votecatcher
● 4.10.16 The Demon Duck freak show of partial ‘Civic’ information! Before voting closes! #Dunedin
11.1.16 Un hôtel. Dunedin.
19.8.15 Hotels ? Business ? [DCC lost +++152 fleet vehicles] —Cull in charge of building chicken coops, why ?
1.4.14 HOTEL Town Hall… Another investment group, Daaave’s pals from the communist state?
25.3.14 Hotel We LIKE: Distinction Dunedin Hotel at former CPO

Posted by Elizabeth Kerr

This post is offered in the public interest.

█ The following images are taken from Appendix 6 – Consultant Urban Designer’s Report – Appendix plans (PDF, 1.5 MB).

They comprise
● 2 cross sections – originally provided as applicant evidence by Thom Craig Architects Ltd, and
● 7 photomontages of anticipated views – originally provided as applicant evidence by Paterson Pitts Group (surveying, planning, engineering)

– to which new height levels have been added in the evidence provided by independent Urban Design consultant Garth Falconer for Dunedin City Council.

[click to enlarge]








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Filed under Architecture, Business, Construction, DCC, Democracy, Design, District Plan, Dunedin, Economics, Education, Events, Finance, Heritage, Hot air, Hotel, Housing, Infrastructure, Media, Name, New Zealand, People, Pet projects, Politics, Project management, Property, Proposed 2GP, Public interest, Resource management, Site, Structural engineering, Technology, Town planning, Transportation, Travesty, Urban design, What stadium

Fletcher Building subject to investigation by NZX

### tvnz.co.nz 11:54am
1 News
Source: NZN
Fletcher Building to be investigated by NZX as company announces much-reduced earnings
The New Zealand stock exchange says it will be investigating Fletcher Building’s additional profit warning for the year ended June 30 and the departure of chief executive and managing director Mark Adamson.
“NZX will be making inquiries into today’s disclosures, given FBU’s continuous disclosure obligations under the listing rules,” the NZX Head of Market Supervision Joost van Amelsfort said in a release.
Separately – in accordance with NZX’s routine surveillance processes – trading ahead of today’s announcement would be assessed in detail, it said.
That would be on top of NZX’s ongoing investigation into the disclosure of FBU’s previous earnings downgrade in March 2017,” it said.
Read more

****

### interest.co.nz
Posted in Property July 20, 2017 – 09:13am
Fletcher Building has announced the immediate departure of chief executive Mark Adamson and says operating earings this year will be around $100 million less than previously indicated
By David Hargreaves
Construction giant Fletcher Building says chief executive Mark Adamson is leaving immediately, while the company’s now forecasting operating earnings of around $100 million less than its last forecast.
Additionally, the company says it’s writing down the value of two business units by about $220 million. This will not be a ‘cash’ loss per se, but will carve about 3% off the value of the company’s assets.
The share price fell – down about 8.5% to $7.40.
….The $220 million write-down relates to the Iplex Australia and Tradelink subsidiaries.
Fletcher indicated that most of the reduced earnings forecast would come through two major projects: “A major project subject to previous write-downs, which has required an increase in project resourcing and therefore cost as it nears completion,” and “a second major project where construction timelines and the likely completion date have been extended”.
This is the third major profit warning the company has issued this year. After the last one in March it was speculated – and never denied by the company – that the two projects causing the biggest problems were Government projects; namely the new Sky City International Convention Centre in Auckland and the new Justice and Emergency precinct in Christchurch.
Read more

****

Sky City International Convention Centre

Remember the National government waffle:

### ODT Online Wed, 28 Oct 2015
Fletcher signs with SkyCity
By Simon Hartley
SkyCity’s $700 million convention centre and hotel project in central Auckland has contracted Fletcher Building for $477 million of the work, expected to begin by December. […] Despite controversy over the project, there was negligible political response to yesterday’s announcement, other than Minister of Economic Development Steven Joyce talking up the importance of the “national facility”.
Read more

****

20 July 2017
STATEMENT FROM FLETCHER (via interest.co.nz)

– Fletcher Building announces expected earnings for the financial year ended 30 June 2017
– Operating earnings expected to be approximately $525 million, down from previous guidance of $610-$650 million
– Likely impairment up to $220 million relating to Iplex Australia and Tradelink business units
– Departure of Chief Executive Officer (CEO) and Managing Director Mark Adamson
– Appointment of Francisco Irazusta as interim CEO, effective Monday 24 July 2017

Fletcher Building has today announced it expects operating earnings before interest, tax and significant items (‘EBIT’) to be approximately $525 million for the year ended 30 June 2017.

Trading in the Building Products, International, Distribution and Residential and Land Development divisions, as well as three of the four business units in the Construction division (Infrastructure, Higgins and South Pacific), are in line with the Company’s expectations, previously provided at the time of the interim results on 22 February 2017.

However, as work on major projects in the Building + Interiors (‘B+I’) business unit has progressed, it has become apparent that losses in B+I will exceed those previously estimated. The deterioration is due to:
– A major project subject to previous write-downs, which has required an increase in project resourcing and therefore cost as it nears completion;
– A second major project where construction timelines and the likely completion date have been extended;
– Reduced profit expectations on a number of smaller projects in the remainder of the B+I portfolio.

Fletcher Building Chairman Sir Ralph Norris said: “It is very disappointing to see further losses being reported in our B+I business, particularly when the vast majority of the remaining Fletcher Building business units have performed so well during the year. I know our people in B+I are working incredibly hard to deliver a number of projects for our clients and I would like to acknowledge their efforts.”

In addition, consistent with standard practice at the end of each financial period, Fletcher Building has undertaken a review of the Balance Sheet carrying values of its business units. This review has indicated that the value of two business units, Iplex Australia and Tradelink, are likely to be subject to an impairment charge of approximately $220 million, when the company finalises its financial statements in August. An impairment of this nature would be reported below the EBIT line and have no impact on cash earnings.

An impairment charge of $220 million would represent approximately 3% of the group’s total assets as at 30 June 2017. The amount of asset impairment is indicative at this stage and is subject to finalisation of the year-end audit.

“With regards to the impairment of Iplex Australia and Tradelink, while we do see progress in these business units the Board felt it was prudent to recognise that the near to medium term estimates of profitability in each business are not aligned with current carrying values,” continued Sir Ralph.

The Board also announced the departure of Chief Executive Officer (CEO) and Managing Director, Mark Adamson.

Sir Ralph Norris said: “The Board believes it is the right time for Mark to leave the Company, to allow a new CEO to lead Fletcher Building through this period and into the next phase of its strategy. The Board would like to thank Mark for his work and we wish him the best in his future endeavours.”

Mark Adamson said: “I am disappointed to finish my tenure on the back of a challenging result in the Construction Division, however I am proud of what has been achieved over the last five years – most notably the turnaround of Formica, double-digit earnings growth in Distribution, our acquisition of Higgins and the significant progress in our residential development division.”

The Board has appointed Francisco Irazusta interim CEO effective Monday 24 July 2017.

“Francisco joined Fletcher Building in March 2015 and is currently Chief Executive of the International Division. Prior to joining the Company he held senior leadership positions with a number of building products companies in North America and Europe and will provide stable leadership for the business during this transition, with the support of myself and the Board,” finished Sir Ralph.

The Board will now commence a process to appoint a new CEO.

[ends]

Fletcher Building http://www.fletcherbuilding.com/

Christchurch Justice and Emergency Services Precinct

Other news:
NZH: Fletcher CEO sorry for inflammatory internal email: Chairman
Stuff: SkyCity confirms delay to international convention centre as Fletchers feels ‘pain’
NZH: CEO departs amid Fletcher’s $415m fortune turnaround, stock drops to 16-month low

Posted by Elizabeth Kerr

This post is offered in the public interest.

1 Comment

Filed under Architecture, Business, Construction, Design, Economics, Finance, Geography, Media, Name, New Zealand, Politics, Project management, Property, Public interest, Urban design

DCC makes no direct return from rugby or events held at Fubar Stadium

L A S T ● M O N T H ’S ● P R O N O U N C E M E N T ● F R O M ● A B O V E

ODT 20.6.17 (page 6)

ODT 26.6.17 (page 8)

Trevor Lloyd: Defeat of British rugby by the All Blacks in 1905 [pinimg.com]

Posted by Elizabeth Kerr

This post is offered in the public interest.

6 Comments

Filed under Architecture, Baloney, Business, Concerts, Construction, DCC, Design, Dunedin, DVL, DVML, Economics, Education, Events, Finance, Hot air, Infrastructure, Media, Name, New Zealand, OAG, Ombudsman, ORFU, People, Perversion, Pet projects, Politics, Project management, Public interest, Sport, Structural engineering, Technology, Tourism, Travesty, What stadium

Asbestos contamination at Dunedin Railway Station

[womentravelnz.com]

There’s a new tenancy at the Dunedin Railway Station.

People working on the project had been told the whole underfloor area was safe to enter; that there was plastic down.

Turns out the plastic cover ran short, and a number of site workers had crawled across bare dirt, kicking up a lot of dust as they went – it was found the area had been contaminated with asbestos.

We understand workmen from several companies have been affected.

The Dunedin Railway Station is a council owned property. Affected sitemen have since had their names added to the WorkSafe Asbestos Exposure Database; and Health and Safety meetings have been called to review safety drills and gear provision.

It appears a few people have slipped up along the ‘food chain’ of managerial responsibility for the workers, starting with DCC management (the building owner).

We hear DCC is now paying for workers to be educated on what protection gear they must wear on exposed asbestos worksites.

Related Post and Comments:
19.6.16 Thoughts on ODT Insight : Chris Morris investigates Asbestos plague

Posted by Elizabeth Kerr

This post is offered in the public interest.

9 Comments

Filed under Architecture, Business, Construction, DCC, Democracy, Design, Dunedin, Economics, Education, Events, Health & Safety, Heritage, New Zealand, People, Politics, Project management, Property, Public interest, Site, Tourism, What stadium

“Fat” gawky Hotel and Apartment building : Questionable design even with 4 floors lopped off

What environmental considerations, Mr Page?

More than minor.

[Everyone will remember the learned Mr Page from the Betterways hotel and apartment building application for 41 Wharf St at the waterfront, not so long ago.]

Mr Bryce (independent planner): …a “key concern” for submitters…the building would block sun from reaching the Regent Theatre and surrounds from 3pm at winter solstice. “At this time of year, the proposal will effectively remove all remaining access to sunlight received over [the] southern end of the western side of the Octagon.” (ODT)

Mr Page (the developer’s ‘Brief’): The “potential shading effect” was acknowledged, but Mr Page was confident the hotel’s benefits “will far outweigh” those concerns. (ODT)

Mr Page, again : The hotel’s “tall, slender built form” minimised the impact on those living closest to the hotel project site… (ODT)

Good heavens.

Source: Application documents

At Facebook:

### ODT Online Tue, 11 July 2017
Hotel developer still confident
By Chris Morris
Dunedin’s latest five-star hotel bid will “not be viable” if the developer is forced to reduce the building’s height, it has been claimed. But the man behind the project, Tekapo businessman Anthony Tosswill, remains confident the hearings panel set to decide the project’s fate can yet be swayed by the hotel’s benefits. The comments came from Phil Page, the lawyer acting for Mr Tosswill, days after the public release of an independent planner’s report running the ruler over the hotel proposal.
The report by Nigel Bryce concluded consent be declined unless Mr Tosswill agreed to a “substantial reduction” in the building’s height, by four storeys, to bring it down from 60m to 45.5m.
Read more

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Resource Consent Application LUC 2017-48 and SUB 2017-26, 143 – 193 Moray Place, Dunedin (Proposed Hotel)

The hearing will be held on Mon 31 Jul, Tue 1 Aug, Wed 2 Aug, Thu 3 Aug and Fri 4 Aug 2017 in the Edinburgh Room, Municipal Chambers (off the Octagon). The hearing will commence at 9.30 am each day.

Consultant Planner’s Section 42a Report (PDF, 4.3 MB)

[excerpt]

SUMMARY OF RECOMMENDATION
[5] For the reasons set out in paragraphs 72 to 334 below, I consider that the Proposal in its current form, will not promote the sustainable management of natural and physical resources in accordance with Part 2 of the Resource Management Act 1991 (RMA or the Act).
[6] The Development promotes a contemporary design, which is considered acceptable within this setting and articulates sufficient design interest and modulation through the facades and its pinwheel like form expressed in the tower component of the building. The building’s design incorporates a base building or podium, which allows the structure to have an active street frontage to Moray Place and Filleul Street, which is considered a positive design response.
[7] The Development will be ‘juxtaposed’ against a backdrop of the heritage buildings located to the east of Moray Place, including the Town Hall and St Paul’s Cathedral when viewed from the west and St Paul’s Cathedral and the Municipal Chambers when viewed from the south (including from the Octagon).
[8] The building’s overall height is considered to generate an over-dominance on properties to the north and west of the Site, and will have more than minor adverse effects on the amenity values of residential properties to the west of the Site. This is largely due to the significant change in scale introduced by the Development and the lower scale built environment that currently exists to the west and north of the development site, comprising predominantly two to three storeys in height.
[9] The Development will adversely impact upon the townscape values of the TH02 Octagon townscape precinct under the Operative Dunedin City District Plan (Operative Plan), including loss of sunlight penetration into the Octagon during the Winter Solstice and will adversely impact upon the setting and pre-eminence of existing heritage buildings such as the St Paul’s Cathedral and the Municipal Chambers building when viewed from the Octagon.
[10] The Development is considered to result in more than minor visual amenity and shading effects on Kingsgate Hotel to the south of the Site. The Kingsgate Hotel will experience prolonged and more sustained loss of light over a wider part of the property and associated buildings over the critical morning period during the Equinox and Winter Solstice periods (or collectively over ¾ of the year). This conclusion has been reached having regard to the potential for the Site to be developed up to a maximum height of 11 metres with a building erected against all boundaries (the ‘controlled activity building outline’).
[11] For the scale of the building to be mitigated to an acceptable level, and to maintain and enhance the amenity values of the City Centre and wider environs, Council’s urban design consultant, Mr [Garth] Falconer recommends reducing the proposed building height by four levels to bring the total height down to nine storeys (Level 13, +157,500 (datum level) on Drawing Section AA). This reduction would provide for a maximum height of 45.6 metres from existing ground level, or a maximum height breach of 34.4 metres (including the lift shaft). This mitigation response would not remove any of the 210 visitor accommodation rooms (hotel rooms), and would maintain supporting facilities including licensed premises, retail, conference, meeting facilities and on-site amenities, parking, and servicing areas. I note, for completeness, that the Applicant is not currently proposing to reduce the height of the Development.
[12] In its current form, it is my recommendation that the proposal should be declined.

More about Garth Falconer, DCC’s consulting urban designer:
LinkedIn profile: https://nz.linkedin.com/in/garth-falconer-a0699bb3
Owner and Director, Reset Urban Design Ltd: http://reseturban.co.nz/

Take a glimpse of the ‘urban form’ at Takapuna, North Shore Auckland (his home turf), to know Mr Falconer is likely missing any handle on building height for a heritage city like Dunedin.

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Agenda and all documents including Submissions at:

http://www.dunedin.govt.nz/council-online/notified-resource-consents/notified-applications-pending/luc-2017-48-and-sub-2017-26

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At Facebook [see comments]:

### ODT Online Sat, 8 Jul 2017
Reject hotel bid: planner
By Chris Morris
A planner has recommended rejecting Dunedin’s latest five-star hotel bid, unless the developer agrees to a “substantial reduction” in the building’s height. The recommendation to decline consent came in a report by independent consultant Nigel Bryce, made public yesterday, ahead of the public hearing beginning on July 31. In his report to the panel of independent commissioners, Mr Bryce said the hotel development would “visually dominate” its surroundings, including the town hall, St Paul’s Cathedral and the Municipal Chambers. It would be the tallest building in the central city and would cast a shadow over the Octagon, as well as the nearby Kingsgate Hotel, during winter. Together with other impacts, the development was considered to be “non-complying” under the city’s district plan rules. It would only be acceptable if the building was reduced by four storeys, lowering its overall height from 60m to 45.6m, which was still well above the existing 11m height limit for the site, his report said.
Read more

[initial coverage]
7.7.17 ODT: Decline hotel consent: report

### ODT Online Wed, 28 Jun 2017
Two from North Island on hotel hearings panel
By Chris Morris
The panel to decide the fate of Dunedin’s latest five-star hotel bid features one familiar face and two from the North Island. Tekapo businessman Anthony Tosswill’s bid to build a 17-storey hotel and apartment tower in Dunedin would be considered over five days, beginning on July 31, it was confirmed yesterday. […] The panel of three would be headed by chairman Andrew Noone, now an Otago regional councillor, acting in his role as an independent commissioner. […] Alongside him will be fellow independent commissioners Stephen Daysh, of Napier, and Gavin Lister, of Auckland.
Read more

Related Posts and Comments:
● 14.5.17 RNZ reports July hearings for proposed hotel apartment building [comments by Mr Tosswill]
● 4.5.17 Submissions close 10 May : Proposed 17-storey, est. 62.5 metres-high Moray Place hotel/apartment building
● 7.4.17 Proposed hotel *height and design* —the very least of it #sellingoursouls
● 5.6.17 Application lodged for FIASCO Hotel by Tosswill #DunedinWrecks
● 18.12.16 DCC set to take away CBD car parks without Economic Impact research
● 15.10.16 Battle of the hotels : DCC meat in the sandwich (unedifying)
● 5.10.16 Dunedin bauble #votecatcher
● 4.10.16 The Demon Duck freak show of partial ‘Civic’ information! Before voting closes! #Dunedin
11.1.16 Un hôtel. Dunedin.
19.8.15 Hotels ? Business ? [DCC lost +++152 fleet vehicles] —Cull in charge of building chicken coops, why ?
1.4.14 HOTEL Town Hall… Another investment group, Daaave’s pals from the communist state?
25.3.14 Hotel We LIKE: Distinction Dunedin Hotel at former CPO

Posted by Elizabeth Kerr

This post is offered in the public interest.

Source: Application documents

15 Comments

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