Inside new offices council is paying $91m to lease

The new Tauranga City Council offices at 90 Devonport Rd are ready for staff. Photo / David Hall.

The Tauranga City Council’s chief executive has defended the $91.9 million, 15-year cost to lease its new building, saying this enables the council to adapt to a changing workforce.

The council’s 1000 or so administration staff have started moving into the eight-storey eco-building at 90 Devonport Rd in Tauranga‘s CBD.

It is the first time the staff would be under the same roof since 2014, when black mould was discovered in the now-demolished Willow St civic administration building.

The lease has an annual rent of $6,129,511 plus $313,352 for 65 carparks.

The council is leasing the building from Willis Bond, having sold the property developers the land in 2021 for $8.5 million.

Council chief executive Marty Grenfell said he was looking forward to having all the staff together and the collective culture it would bring.

Tauranga City Council chief executive Marty Grenfell in the new chambers at 90 Devonport Rd. Photo / Tauranga City Council
Tauranga City Council chief executive Marty Grenfell in the new chambers at 90 Devonport Rd. Photo / Tauranga City Council

He was asked if the council had considered owning and constructing the building itself at potentially a lower cost than the lease.

Grenfell said: “Owning and managing a building of this nature is not necessarily our [the council’s] core business.”

The lease of 15 years, plus three five-year extensions, would enable the council to cater to the needs of staff in 20 to 30 years’ time, he said.

“Over that time, it’s likely that the needs of office space changes.

“Otherwise, we’re stuck with bricks and mortar.”

Grenfell said the fit-out cost of $33.5m over 30 years for the building was a “very modest spend and complete value for money”.

The council had calculated the cost of staff time walking between the old leased staff buildings at $1m a year, Grenfell said.

“Arguably, over the period of time, the fit-out cost would be paid for by productivity.”

Stepping inside

Local Democracy Reporting toured the building ahead of staff moving in.

The full glass façade is softened as you step inside, with huge pine structural beams bringing nature indoors.

The $45m building is the country‘s largest mass timber office, with more than 2000 tonnes of New Zealand timber.

Built by LT McGuinness, it has a 6 Green Star Design rating and features rainwater harvesting, electric vehicle charging and facilities that encourage active commuting.

LT McGuinness project director Craig Body. Photo / Tauranga City Council
LT McGuinness project director Craig Body. Photo / Tauranga City Council

LT McGuinness project director Craig Body said not damaging the timber elements during construction was challenging at times.

“This was a finished product right from day one, so everybody had to treat it like a piece of skirting or a piece of scotia [moulding].”

Body said the use of timber cut down noise – screws in wood rather than drilling into concrete.

Prefabricated timber sped up construction and six people put in the structural elements, he said.

Steel frames seismically connected the timber structure to the ground, making it a hybrid building, Body said.

The first floor has council meeting chambers and a councillors’ lounge. A cafe would lease ground floor space and be open to the public, with outdoor dining.

Warren and Mahoney principal architect Asha Page designed the interior fit-out. Photo / Tauranga City Council
Warren and Mahoney principal architect Asha Page designed the interior fit-out. Photo / Tauranga City Council

Natural inspiration

Warren and Mahoney principal architect Asha Page designed the $33.5m interior fit-out, which included meeting rooms, offices, flooring finishes, electrical, digital and IT.

She said level two was her favourite floor because it felt like you were in the pōhutukawa tree growing on the harbour side of the building.

The tree inspired the interior colour palette, earth tones mirroring the trunk on lower floors, then blue to represent the harbour, green like the leaves, with the top floors red like pōhutukawa in bloom, said Page.

The pōhutukawa was also a sacred symbol of the past, present and future for mana whenua, she said.

The Lockwood-esque wooden interior features are broken up with soft furnishings, carpets and greenery.

Page said they had reused as much furniture and fittings as possible from the other buildings.

The internal staircase at 90 Devonport Rd was designed to encourage connection between people. Photo / Tauranga City Council
The internal staircase at 90 Devonport Rd was designed to encourage connection between people. Photo / Tauranga City Council

An internal wood staircase aimed to encourage connection between people, getting them out of their seats rather than using the elevator, Page said.

“Humans will easily walk up or down one or two flights of stairs, so you really start to see the workplace as a whole building, not just as where you sit on one floor, siloed with your team.

“It’s a tried-and-true method of creating a really vibrant or connected workforce.”

Page said staff had been spread across three buildings, so they wanted to maximise the ability for people to come together.

It also tied into one of the building’s design principles – taura here – binding people so they’re stronger together, she said.

Between 600 and 700 people would work in the building on any given day.

Level five was the “anchor floor” with the kitchen, seating and an events area.

Council Te Pou Ahurea cultural adviser Josh Te Kani  and Warren and Mahoney principal architect Asha Page. Photo / Tauranga City Council
Council Te Pou Ahurea cultural adviser Josh Te Kani and Warren and Mahoney principal architect Asha Page. Photo / Tauranga City Council

The top floor houses the mayor’s office, which has views of Mauao and the Kaimai range.

The smaller deputy mayor’s office next door shared the Mauao view.

Māori design principles

The values used to design the building were developed with mana whenua, Ngāti Tapu and Ngāi Tamarāwaho hapu, said council te pou ahurea cultural adviser Josh Te Kani.

Te Papa houkura and Te Papa manawa whenua, referencing the fertile land and springs of the Te Papa peninsula, were about keeping the environment healthy.

The mayor's office on the top floor of 90 Devonport Rd. Photo / Tauranga City Council
The mayor's office on the top floor of 90 Devonport Rd. Photo / Tauranga City Council

The other two were Te Papa o ngā waka, meaning people could find safe anchorage, and Te Papa kāinga o te iwi – the home of the people.

“It’s not just creating a building but creating a living environment where those values can be living alongside of us and grow with us.”

Council staff are to be fully moved into the building by Monday

The first council meeting is to be held in the new chambers on Tuesday.

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

17 comments

Looks nice

Posted on 09-05-2025 07:21 | By Futurefocus

Really nice interior fitout. Natural, sleek and modest. That’s the kind of environment I’d like to work in and reflects our city well.


Noted

Posted on 09-05-2025 08:28 | By FRANKS

that the CEO spoke of Councils core business. Where is this seen with all their spending ????


Wave

Posted on 09-05-2025 11:16 | By Kancho

Talk about waving a red flag to a bull.
This is the result of Labour installing the gang of four commissioners who spent up large signed contracts for all this , the marina etc etc and then ran with a healthy payments. The huge hike of rates set to continue already to double figures every year. Yet no sign of cutting back or savings nor restructuring of bloated bureaucracy.
Nor the message from the government about concentrating on core business not nice to have projects. Council Still completely out of touch and relentlessly recklessly carrying on heaping it on. REALLY outrageous


Unjustifiable

Posted on 09-05-2025 12:09 | By anotherone2

Weak excuse to say owing and managing a building is not part of the council's core business when it holds over $118 million in property.
Likewise team and culture when council are sacking staff and the modern workforce prefers flexible working arrangements.


Classic

Posted on 09-05-2025 13:01 | By Local Cam

"The council had calculated the cost of staff time walking between the old leased staff buildings at $1m a year, Grenfell said."

This is how the council fabricates figures to justify overspending and bridge the debt gap.

In these modern times, there is no need to walk between buildings. Unless you were stopping in town for a coffee. Oh wait, thats right.


The Master

Posted on 09-05-2025 16:23 | By Ian Stevenson

The Palace... is a huge understatement...

For just a few million the Willow Street office would easily have been cleaned up.

That is why it was a massive rush job to demolish it, to get rid of the evidence and so create a situation of forcing EM's to approve something else.

Lets add to the issues... The 3rd Ave/Cameron Road building was easily bigger enough to house them all, but as usual TCC rampant excess staffing levels rapidly exceeded even TCC's exorbitant dreams of staff number...

The rebuild intended at Willow street was for around 780 staff, not 1299 that was reported recently.


The Master

Posted on 09-05-2025 16:28 | By Ian Stevenson

The Cameron Road/3rd Ave building is half the rent.

Add to that... it was a fraction of the cost, all TCC has done is at a huge cost that vastly exceeds being wasteful, extravagant and massively self indulgent...

The obvious reason that TCC did not own it is because it could not own it, reason: -
1 Any building TCC is in charge of it a disaster (new palace is not exception)
2 Although TCC is the local BCA, the best level that have been able to aspire to is to be "negligent" (Colgan report July-2019)
3 TCC has billions in debt, they cant borrow any more with hiking TCC rates even more than 267% by 2034...

Three strikes and you are out!!!


The Master

Posted on 09-05-2025 16:33 | By Ian Stevenson

Lets not forget that the cost here are a lot more that TCC would willingly admit: -

1 Sold the land for $8.5m when worth perhaps $20m
2 Demolished buildings at Willow Street for no real reason $100+m destroyed
3 Now paying rent $91.5m over 15 years... plus rent increases.
4 Pay for the fit out, partitions, furniture, IT etc, likely $50-70m?
5 Own nothing at the end
6 With the exponential staff number growth, more buildings will be rented in time.
7 Cant see how this path is remotely affordable to TCC ratepayers.

At the end of it, now all staff can fit in, if TCC was half efficient and organized (obviously not so)


Is that it?

Posted on 09-05-2025 16:37 | By Jules L

For all the truckloads of money, it's pretty ugly inside. It looks like a few mates have knocked it up using a few old pallets and some leftover sheets of plywood.


Great Spin

Posted on 09-05-2025 16:50 | By Fernhill22

This is great spin from TCC, who seem hell bent on punishing ratepayers yet manage to spend extravagant amounts of money on vanity projects (New Ivory Towers & Civic Precinct) on nice to have projects benefitting their own agenda. If you want to impress your ratepayers, you can start by cutting back on costs from the top down. That means reducing senior management salaries, start cutting back & reducing the bloated work force of 1,000+ employees, getting employees to pay for their own coffees like everyone else does, start getting better value from TCC's contractors, and being honest & transparent, no more dubious deals like the sale of the Marine precinct. There's allot of work to be done Marty to justify your extravagant salary, it's time you, Mahe & the gang started rolling up your sleeves and getting on with the job in hand-cutting back costs.


Hmmm

Posted on 09-05-2025 17:19 | By Let's get real

My initial thoughts on seeing the pictures of the inside of this level 6 eco building... It looks like the inside of a woolshed, rather than a multi million dollar hotel for the great and the good.
I can't understand the drivel from the CEO... If they're bringing the mowing contract in-house at a cost of millions in new equipment, why can't they employ their own maintenance team of two or three tradesmen, to maintain THE EMPIRE.
Sure, they'll have their toadies telling them how great they are and what a magnificent job they're doing, but at the end of the day, where is the cupboard where they leave their commonsense when entering council spaces..?
The only positive spin I can put on this is that at least they'll never run out of hot air to recycle in their new empire...


Not too many years ago...

Posted on 09-05-2025 18:28 | By Watchdog

Not long ago the administration staff was only 250 in number. How come it is now 1,000? Surely there is some trimming that could be done, say down to 500. What do they all do I wonder!!! And what is the staff salaries bill every year?


ownership

Posted on 09-05-2025 19:21 | By BJWD

For 91 million dollars, why don't we own the bloody thing? Doesn't take an Einstein to work that one out!


Magnificent

Posted on 09-05-2025 20:29 | By Duegatti

This is a stunning building, a brilliant design. Something that may inspire other developers to raise their game and make Tauranga a real city.
It also centralises TCC rather than being spread around the CBD.
Not to mention 600 more consumers buying lunches, having after work drinks, meals, etc in a very tired CBD.
I wondered about the wisdom of being in a prime central location, but this seems to have more pluses than minuses.
Well done TCC.
Now, stop wasting our rates on all the other nonsense.


Gloat, why don't you

Posted on 09-05-2025 21:20 | By nerak

Rubbing the ratepayers noses in your greatly inflated selves does nothing for any of us.
You are exceedingly greedy, and looking out for ways to grow that greed. Shame on the lot of you, from the top down.


Disgraceful

Posted on 10-05-2025 16:11 | By Trixie39

This is discussing rate payers pensioners fitting the bill SHAME On You


I agree with ...

Posted on 11-05-2025 12:44 | By morepork

... with Kancho and nerak. Having just posted about 2 year old Remi, unable to get treatment because we "can't afford it" (we most certainly CAN afford it...), this kind of leaves a very bad taste in the mouth.
I don't object to Council being well accommodated, I don't even mind them drinking coffee on my tab, but I most certainly object to the development of a sense of their own over-importance and the apparent complete disregard for their primary function being SERVICE. As long as kids like Remi are not being funded, as long as Rates are still going up, then any and all signs of ostentatious self-indulgence by Council are completely inappropriate.


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