{"id":115491,"date":"2025-11-03T11:11:11","date_gmt":"2025-11-03T11:11:11","guid":{"rendered":"https:\/\/www.newsbeep.com\/nz\/115491\/"},"modified":"2025-11-03T11:11:11","modified_gmt":"2025-11-03T11:11:11","slug":"wellington-city-councils-207m-jervois-quay-lease-deal-revealed-after-ombudsman-investigation","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/nz\/115491\/","title":{"rendered":"Wellington City Council\u2019s $207m Jervois Quay lease deal revealed after Ombudsman investigation"},"content":{"rendered":"<p class=\"DlhGGFuIDuZ\" style=\"display:none\">It did say the lease was a \u201ccost-effective long-term solution\u201d and favourable terms were negotiated.<\/p>\n<p class=\"DlhGGFuIDuZ\" style=\"display:none\">The Herald complained to the public sector watchdog, Ombudsman John Allen, citing the need for transparency for the use of ratepayer funds, and pointing to the <a href=\"https:\/\/www.nzherald.co.nz\/bay-of-plenty-times\/news\/tauranga-city-council-signs-919m-lease-deal-for-devonport-rd-offices\/LFKITDJTX5CMLIFBKSMLU4FYPI\/\" target=\"_self\" rel=\"nofollow noopener\" title=\"https:\/\/www.nzherald.co.nz\/bay-of-plenty-times\/news\/tauranga-city-council-signs-919m-lease-deal-for-devonport-rd-offices\/LFKITDJTX5CMLIFBKSMLU4FYPI\/\">publication of details of similar lease arrangements for other city councils\u2019 headquarters<\/a>.<\/p>\n<p class=\"DlhGGFuIDuZ\" style=\"display:none\">The Ombudsman  investigated and wrote to council CEO Matt Prosser.<\/p>\n<p class=\"DlhGGFuIDuZ\" style=\"display:none\">Now, the council has backtracked on its refusal, finally making public the 25-year deal totalling $207m, plus fit-out costs.<\/p>\n<p class=\"DlhGGFuIDuZ\" style=\"display:none\">The new Jervois Quay HQ will house the council\u2019s 1200 staff, as well as the council chambers, mayor\u2019s Office, hearing room, and a ground floor reception.<\/p>\n<p class=\"DlhGGFuIDuZ\" style=\"display:none\">Relocation to Jervois Quay was supposed to happen earlier this year, but will now not take place until early 2026 due to delays in preparing the building.<\/p>\n<p class=\"DlhGGFuIDuZ\" style=\"display:none\">The council\u2019s chief M\u0101ori officer, Karepa Wall, is leading the project and said in a statement the council has now begun its part of the fit-out after strengthening works and base renovations were recently completed by Cornerstone Partners.<\/p>\n<p class=\"DlhGGFuIDuZ\" style=\"display:none\">Wall said the council secured a \u201cfavourable rate of $488\/square metre in comparison to other CBD lease options, presented to elected members, which had square metre rates between $1000-$1102\u2033.<\/p>\n<p class=\"DlhGGFuIDuZ\" style=\"display:none\">The Greenstar rated building is 17,000 sq m, equalling an $8.29m annual lease cost to the council, and $207.4m over 25 years.<\/p>\n<p><img  alt=\"Andrew Little after being named Wellington Mayor, on election day, with the new council offices in the background. Photo \/ Mark Mitchell\" class=\"article-media__image responsively-lazy\" data-test-ui=\"article-media__image\"\/>Andrew Little after being named Wellington Mayor, on election day, with the new council offices in the background. Photo \/ Mark Mitchell<\/p>\n<p class=\"DlhGGFuIDuZ\" style=\"display:none\">The location was partly chosen due to its proximity to Te Ng\u0101kau Civic Square &#8211; the \u201ccreative and civic heart of the city\u201d, Wall said.<\/p>\n<p class=\"DlhGGFuIDuZ\" style=\"display:none\">The current council chambers, alongside most staff, are in the former PricewaterhouseCoopers tower at 113 The Terrace.<\/p>\n<p class=\"DlhGGFuIDuZ\" style=\"display:none\">The organisation was previously housed in Civic Square but had to move to the temporary Terrace site, as well as a Boulcott St lease, and the City Archives building on Barker St in 2018 after the Kaik\u014dura earthquakes.<\/p>\n<p><img  alt=\"Wellington\u2019s Civic Precinct, currently under construction, will not house the new council chambers and offices. Photo \/ Mark Mitchell\" class=\"article-media__image responsively-lazy\" data-test-ui=\"article-media__image\"\/>Wellington\u2019s Civic Precinct, currently under construction, will not house the new council chambers and offices. Photo \/ Mark Mitchell<\/p>\n<p class=\"DlhGGFuIDuZ\" style=\"display:none\">The council did consider moving back in to the old Civic Administration Building and Municipal Office Building, but decided with the Jervois Quay site in line with officer recommendations.<\/p>\n<p class=\"DlhGGFuIDuZ\" style=\"display:none\">The new HQ site is owned by Wellington City Council as a ground lease to Cornerstone Group.<\/p>\n<p class=\"DlhGGFuIDuZ\" style=\"display:none\">But the Herald understands the council is currently in negotiations to sell off the ground lease of the site, to help bolster its Disaster Resilience Fund and mitigate its insurance risk.<\/p>\n<p class=\"DlhGGFuIDuZ\" style=\"display:none\"><a href=\"https:\/\/www.nzherald.co.nz\/author\/ethan-manera\/\" target=\"_self\" rel=\"nofollow noopener\" title=\"https:\/\/www.nzherald.co.nz\/author\/ethan-manera\/\">Ethan Manera<\/a> is a Wellington-based journalist covering Wellington issues, local politics and business in the capital. He can be emailed at <a href=\"https:\/\/www.nzherald.co.nz\/nz\/wellington\/wellington-city-councils-207m-jervois-quay-lease-deal-revealed-after-ombudsman-investigation\/YUDN437AMZBNHHGA5GRI34DMWQ\/mailto:ethan.manera@nzme.co.nz\" target=\"_self\" rel=\"nofollow noopener\" title=\"https:\/\/www.nzherald.co.nz\/nz\/wellington\/wellington-city-councils-207m-jervois-quay-lease-deal-revealed-after-ombudsman-investigation\/YUDN437AMZBNHHGA5GRI34DMWQ\/mailto:ethan.manera@nzme.co.nz\">ethan.manera@nzme.co.nz<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"It did say the lease was a \u201ccost-effective long-term solution\u201d and favourable terms were negotiated. The Herald complained&hellip;\n","protected":false},"author":2,"featured_media":115492,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[82259,82255,74,2199,5205,7558,3468,9872,3158,12898,82256,82258,130,111,43,139,69,12792,82257,12860,14040,131,42580,52,1533],"class_list":{"0":"post-115491","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-new-zealand","8":"tag-200m","9":"tag-207m","10":"tag-after","11":"tag-city","12":"tag-council","13":"tag-councils","14":"tag-deal","15":"tag-finally","16":"tag-headquarters","17":"tag-investigation","18":"tag-jervois","19":"tag-lease","20":"tag-more","21":"tag-new-zealand","22":"tag-news","23":"tag-newzealand","24":"tag-nz","25":"tag-ombudsman","26":"tag-quay","27":"tag-revealed","28":"tag-spend","29":"tag-than","30":"tag-waterfront","31":"tag-wellington","32":"tag-will"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/115491","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/comments?post=115491"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/115491\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media\/115492"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media?parent=115491"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/categories?post=115491"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/tags?post=115491"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}