Tauranga City Council is looking to sell off ‘surplus’ properties to help fund the $306m civic precinct redevelopment, which aims to revitalise the city's heart.

Thirteen properties owned by the council could be classified as surplus under the council’s Asset Realisation Reserve.

The thirteen properties are a mix of residential, commercial, and vacant land, some of which were bought for stormwater purposes.

The reserve was established in July 2023 for managing the disposal of assets the council no longer needed.

The properties were classified as surplus at a council meeting on Monday, subject to legal obligations and consultation with mana whenua.

Their estimated values were kept confidential as it could "disadvantage negotiations”.

Commissioner Bill Walsey questioned why a public carpark at 134 Greerton Road was being considered as surplus.

“It's a pretty popular car park and I'm not sure why as council we would be intending to sell that.”

The free carpark supported the Greerton Shopping area and he wasn’t convinced the council should “pull the trigger” on selling that property, he said.

Council commercial property manager Simon Collet said the classification was just a step in the process and there would be further requirements to go through before the council considered it for sale.

At Wasley’s request the property was removed from the surplus category and classified as “strategic”, so it would be subject to further investigation before any sale occurred.

Collet said the potential sale of the surplus assets could happen over the next two years.

Mana whenua would have the right of first refusal if the properties were suitable for sale on the open market.

If mana whenua declined the offer the properties could be sold on the open market.

“This is just a step to working towards that support for Te Manawataki o Te Papa that these properties are really critical for,” said Collet.

Te Manawataki o Te Papa, meaning the heartbeat of Te Papa, will include a library and community hub, civic whare (public meeting house), exhibition gallery and museum.

The council initially proposed selling its two CBD parking buildings as part of the asset realisation reserve and consulted on it through the 2024-34 long term plan process.

Instead of selling the buildings the council decided to use surplus revenue to fund a loan to go towards the civic precinct.

An artist's impression of Te Manawataki o Te Papa's museum and exhibition centre. Photo: Tauranga City Council.

Ratepayers would fund $151.5m of the $306m precinct Te Manawataki o Te Papa, while the rest would come from government funding and grants, local and community grants, development contributions and the asset realisation reserve.

The council must first obtain external funding then use the asset realisation reserve to top up the balance if needed as a ‘second priority’, said the Te Manawataki o Te Papa Financial Strategy report.

The council had an estimated $25.1m in government funding, $21m for a partnership with TECT, $4.6m from local grants and $700,000 in development contributions, as of May 2024.

This left a balance of $103m. The report showed the estimated value of the asset realisation reserve at $108m.

The ratepayer funding would come from an Infrastructure Funding and Financing (IFF) levy.

The levy would be paid via the rates bill over 30 years and start from July 2025.

For the 2025/2026 rates year the median residential ratepayer will pay up to $128 for the levy. The median commercial ratepayer will pay up to $464 for the levy.

Construction on the precinct has begun and is expected to be completed in 2028.

Council properties that could be sold

• 59C Esmeralda Street, Welcome Bay
• 53D Esmeralda Street, Welcome Bay
• 2014L Kairua Road, Welcome Bay
• 15 Herald Way, Welcome Bay
• 32 Keilor Road, Otūmoetai
• 140 Grange Road, Otūmoetai
• 96B Sherwood, Bellevue
• 31,33,35 Glasgow Street, Tauranga
• 49 Second Avenue, Tauranga
• 34-136 Greerton Road, Tauranga
• 35A and 35B Third Avenue
• 1-3 43 Third Avenue, Tauranga
• 65-73 Cross Road, Tauranga
• 85 Cross Road, Tauranga.

LDR is local body journalism co-funded by RNZ and NZ On Air.