Old council HQ in line for a multi-million dollar conversion

Private investors are lining up to make over Auckland’s old CBD council headquarters – one of the most disliked buildings in the city.

About 20 investors and developers have expressed interest in the 100-metre tall former civic administration building on a 5000m² Greys Ave site for offices, apartments or a hotel.

The building has been empty since last year when staff shifted to the former ASB Centre on Albert Street, which cost the council  $150.7 million to buy and refurbish.

The council can’t afford to do anything with its old headquarters because it is unsuitable for long-term use without significant refurbishment and removal of asbestos, installed as a fire retardant when it was built. The council has gone out to the private sector for help.  

Most of the interest is in conversion of the civic building into 126 apartments – seven per floor from levels one to 18, costing about $79 million. There is no interest in turning the property into a 180-room hotel at about $92 million and little appetite for an office makeover costing $95 million, as there is limited commercial demand in the Aotea Quarter.

Reports show the high cost of restoring the building into offices for potential council and Regional Facilities Auckland uses are disproportionately high when compared to private sector rental options near Aotea Sq.

Investors’ and developers’ proposals must contain plans for restoring the building’s heritage features, intensifying the site and making a frontage to Mayoral Drive and for the property to be complementary to and enhancing the Aotea Centre as the key performing arts centre for the region. Regional Facilities Auckland is working on a refurbishment plan for Aotea Sq.

Although there is strong interest in using the building for apartments, there are concerns it would potentially limit civic uses of Aotea Sq, particularly activities that people think are noisy.

The council says it is assumed any residential uses will be designed to minimise noise disturbance and covenants will be arranged to stop people objecting to events in the square and its surrounds.  

A short-list of contenders will be drawn up based on track record, capability, capacity and alignment with the agreed conditions. They will be reduced to two or three candidates who will draw up detailed design plans before the final “development partner” is selected.

As a carrot, the council says it will sell the freehold to the property or offer a long-term leasehold.

If investors or developers can’t make a refurbishment stack up financially, the council has said in the past it will be torn down.

Councillor Chris Darby says it would be a shame to have it torn down as Auckland has lost many of its historic buildings to the demolition ball.  The property was at the leading edge of building technology when designed in the 1950s and opened in 1966.

Mr Darby wants it to be given a heritage designation and two reports suggest it could be worthy of a category A or B scheduling.