Nearly $500k in office rent paid after Auckland cycle crossing canned

October 5, 2022
Auckland Harbour Bridge.

The Government spent nearly $500,000 on office space for the now-abandoned $785 million Northern Pathway project that was never used on the planned Auckland Harbour Bridge crossing.

The controversial Northern Pathway was announced in June last year to add a full-height bridge to carry cyclists and pedestrians across the Waitematā Harbour.

Alternate options were explored, including a gondola, dedicated ferry or bus service, using existing lanes, and a separate multi-modal structure for walking, cycling and public transport but the recommended solution became a full-height separate bridge option.

The project was expected to take five years to consent and build.

But it was abandoned in October, three months after it was given the green light. Transport Minister Michael Wood said the decision came as a result of feedback against the Northern Pathway, with funds to be reallocated to other projects. Those projects have yet to be announced, according to Waka Kotahi, NZTA.

READ MORE: NZTA to update benefit-to-cost ratio of Auckland cycle bridge project

In June last year, National’s Christopher Luxon accepted a petition from the Taxpayers' Union calling for the cycle bridge to be canned, which at the time had roughly 30,000 signatures that soon grew to 50,000.

By the time the project was cancelled, $51 million had been spent on design, consultants and engineering plan fees, along with almost $500,000 in office space as part of the $785 million cost.

In response to Parliamentary written questions from National’s Transport spokesperson, Simeon Brown, Wood said “Waka Kotahi NZ Transport Agency held the lease of the Pier 21 office space from 1 November 2021 to 31 August 2022 with a total of $491,120 paid in rent for the property”.

READ MORE: 'Divorced from people doing daily life' – National's Christopher Luxon slams Govt's 'billion dollar' bridge

A spokesperson for Waka Kotahi said the lease was originally set for two years but had to be cut short.

“In April 2021, Waka Kotahi as owner-participants in the Northern Pathway Alliance agreed to the Joint Venture parties signing a lease for a minimum of two years to take effect from 1 May 2021."

When the project was canned, Waka Kotahi took over the lease from November 1.

"The space was then used for other project teams while Waka Kotahi engaged in negotiations with the landlord to agree to an early exit from the lease. A potential new sub-tenant for the space was found in July 2022, however the landlord exercised their option to break the lease upon giving 20 days notice, which ended the lease on 31 August 2022.”

The 1092 square-metre Pier 21 office space at Auckland’s Wynyard Quarter was transferred from the Northern Pathway Alliance to Waka Kotahi in November and has been used on an “as-needed basis” for workshops and the 13-member Waitematā Harbour Connections project team as needed, Waka Kotahi said.

“The rent figures were included as part of the overall costs/project budget for the Northern Pathway project which was part of the Crown-funded [tax-payer funded] New Zealand Upgrade Programme,” Waka Kotahi’s spokesperson said.

Brown said it was a waste of money.

Simeon Brown.

“This is an example of extraordinary waste by this Government as part of the $51m wasted on Labour’s Auckland Cycle Bridge which Labour cancelled last year.

“Not only was almost half-a-million dollars wasted on an empty office but it was barely used for the entire year that NZTA had the lease for the building.

“There are also serious questions around why NZTA had to hire some of the most expensive office real estate for a project office,” Brown said.

All hopes from lobbyists on a walk/cycle lane on the Harbour Bridge were dashed in August when the board of NZTA put its foot down on a proposed trial for opening lanes for walking and cycling.

“The most recent safety assessment, undertaken by Waka Kotahi this year, identified a number of safety risks which would be created by the permanent reallocation of lanes for walking and cycling on the bridge,” Waka Kotahi board chair Sir Brian Roche said at the time.

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