Agenda of Economic Development & Urban Affairs Committee Meeting

Economic Development & Urban Affairs Committee – Terms of Reference

Fields of Activity

The development of policy and the oversight of operations in the area of the social, economic, cultural and environmental wellbeing and development of the District, including (but not limited to) the following activities:

· Development of the Council’s overarching strategies for Environmental Management, Economic Development, Growth Management and Urban Development;

· District development and land use planning (high level strategy)

· Urban design and development (including CBD planning)

· Hastings City Centre Development

· Landmarks Activities

· Parks and Reserves

· Economic & Business Development programmes

· Regional development

Other roles of a strategic overview nature including:

· Oversight of sustainability and climate change projects and partnerships for the delivery of and measuring sustainability performance (including the State of the Environment Reporting jointly with the Planning and Regulatory Committee)

· Other policy development not otherwise provided for

Membership

Chairman appointed by Council

Deputy Chairman appointed by Council

The Mayor

All Councillors

Quorum – 8 members

DELEGATED POWERS

General Delegations

1. Authority to exercise all of Council powers, functions and authorities (except where prohibited by law or otherwise delegated to another committee) in relation to all matters detailed in the Fields of Activity.

2. Authority to re-allocate funding already approved by the Council as part of the Long Term Plan/Annual Plan process, for matters within the Fields of Activity provided that the re-allocation of funds does not increase the overall amount of money committed to the Fields of Activity in the Long Term Plan/Annual Plan.

3. Authority to develop and adopt goals, strategies and policies on behalf of the Council for matters within the Fields of Activity.

4. Responsibility to monitor Long Term Plan/Annual Plan implementation within the Fields of Activity set out above.

Parks, Reserves and Walkways

5. Authority to exercise all of the Council’s powers and functions under the Reserves Act 1977 in respect of parks and reserves other than the review of bylaws.

6. Authority to hear submissions under s120 (1)(c) of the Reserves Act 1977 in relation to all reserves or to appoint a commissioner or commissioners to hear submissions and to make a recommendation in respect of those objections or submissions to the Committee.

7. Authority to determine names for or to change the name of, parks and reserves owned or administered by the Council.

8. Where the Council is appointed as the controlling authority of a walkway under the New Zealand Walkways Act 1990, authority to exercise the powers of the controlling authority.

Bylaws

9. Authority to monitor any Council bylaws relating to matters within the Fields of Activity and to recommend any amendments or additions to those bylaws to the Planning and Regulatory Committee for review and consideration.

File Ref: 17/67

REPORT TO: Economic Development & Urban Affairs Committee

MEETING DATE: Tuesday 14 February 2017

FROM: Projects and Public Space Manager

Russell Engelke

Parks and Property Services Manager

Colin Hosford

SUBJECT: Hastings and Havelock North 10 year CBD upgrade programme

1.0 SUMMARY

1.1 The purpose of this report is to seek the Committee’s adoption of the proposed CBD Upgrade Programme for 2016/26 for the Hastings City Centre and Havelock North Village following final consultation and feedback from the community.

1.2 This request arises from a Council resolution on 5 April 2016 instructing officers to carry out final targeted consultation with the Hastings and Havelock North business associations prior to returning for final adoption of the programme.

1.3 The Council is required to give effect to the purpose of local government as prescribed by Section 10 of the Local Government Act 2002. That purpose is to meet the current and future needs of communities for good quality local infrastructure, local public services, and performance of regulatory functions in a way that is most cost–effective for households and businesses. Good quality means infrastructure, services and performance that are efficient and effective and appropriate to present and anticipated future circumstances.

1.4 The objective of this decision relevant to the purpose of Local Government is the provision of good quality local and public infrastructure which meets the needs of our community by contributing towards establishing vibrant, functional and high amenity urban centres.

1.5 This report concludes by recommending the endorsement of the Hastings CBD and Havelock North CBD Upgrade Programme for 2016/26 (Attachments 1 and 2).

2.0 BACKGROUND

2.1 While both the Hastings and Havelock North CBD’s have gone through extensive street improvement programmes over the last 20 years, both Council and the business community recognise the need to maintain investment in the CBD areas for them to remain a vibrant and attractive place to do business.

2.2 In 2016, officers presented Draft CBD Programmes for Hastings and Havelock North to Council for consideration. The programmes contained recommended street upgrade projects to be undertaken over the next 10 odd years.

2.3 The draft programme for the Hastings CBD was guided by the intent of the original Hastings CBD Strategy (adopted 1999), the Hastings City Centre Strategy (adopted in September 2013) and the 2015/16 Hastings City Vibrancy Plan. The Vibrancy Plan, (adopted in October 2015) contains specific actions focused upon developing a Hastings CBD street improvement programme that builds on and complements that intent of the original strategy.

2.4 Similarly, the original urban design for Havelock North CBD included a landscape master plan that included an urban design template which recommended a distinct design palette that reflected local Havelock North elements.

2.5 After considering the draft programmes, Council requested officers to return to the two respective business associations for final consultation and report back on their inputs, prior to final consideration and ratification of the draft work programmes.

3.0 CURRENT SITUATION

3.1 Officers, have now met with representatives of the Hastings and Havelock North business associations, and sought to integrate their feedback into the Draft Programmes.

3.2 This reports updates the Committee on the feedback, assesses them in relation to other identified priorities and offers an amended programme for the Committee’s consideration.

3.3 The revised CBD Upgrade Programme’s for Hastings and Havelock North are attached to this report as Attachments 1 and 2 respectively.

4.0 OPTIONS

4.1 There are three options for the Committee to consider;

· Option 1- To adopt the CBD Upgrade Programmes for Hastings and Havelock North with or without amendments.

· Option 2 - To not endorse the CBD Upgrade Programme for Hastings and Havelock North.

5.0 SIGNIFICANCE AND ENGAGEMENT

5.1 While the quantum of expenditure is sizeable, it is not of a level that breaches any of Council’s significance thresholds as it is in alignment with the adopted 2015/25 LTP funding provisions for CBD upgrades in both Hastings and Havelock North.

5.2 The funding provisions for CBD upgrades in the 2015/25 LTP equates to $300,000.00 per annum for Hastings and $100,000.00 per annum for Havelock North. The attached Upgrade Programmes for 2016/26 have been sequenced to remain largely within these funding provisions

5.3 As per Council’s instructions, officers have returned to respective business associations to undertake targeted consultation and seek their final feedback. In Havelock North, officers took the opportunity to present the programme at their “Last of the Summer Wine” meeting. The programme was well received and supported.

5.4 Officers presented to the Hastings Business Association (HBA) executive, where the programme was robustly debated. While all the actions included were supported, the key concern raised was over priorities actions and when they should occur. The HBA’s feedback is discussed in more detail later in the report.

6.0 ASSESSMENT OF OPTIONS (INCLUDING FINANCIAL IMPLICATIONS)

6.1 The Draft and now Revised CBD Upgrade Programmes have been shaped in accordance with past and present strategic directions, recognising that previous and present strategic directions remain of relevance, have merit and bring benefits to CBD business, patrons and visitors. This strategic intent was informed by numerous planning sessions and consultations exercises involving a range of business association managers and representatives spanning several years. Final targeted consultation has now occurred and the Revised CBD Upgrade Programmes document is now ready for final discussion and adoption.

6.2 Havelock North CBD Upgrade Programme – The final consultation raised no issues and as such officers recommend the document remain unchanged.

6.3 Hastings City CBD Upgrade Programme – The final consultation was largely supportive of the programme but the group made some suggestions or recommendations in terms of priorities actions.

· Karamu Road (100 South to 300 North) - they contend that with LFR and K Mart operating so well, work on enhancing the streetscape connection back to the central CBD should be advanced – officers have amended the programme to start this work a year earlier, commencing in 2017/18

· Central water feature – they seek to advance the upgrade of the central water feature to add more vibrancy to the central heart. – while officers have recommended advancing this work from 2020/21 to 2018/19, it is noted that the most pressing and very real project that is most demanding on funds will be the upgrade of the streets adjoining the proposed new Police Station. The funds for this work remain the highest priority and as such, impact on Council’s ability to diverge from the programme without going into deficit and needing to borrow funds ahead of time. Officers have avoided suggesting this move, but it is of course Council’s prerogative to do so if desired.

· Eastbourne street east brought – HCBA raised concern that the streets adjoining Civic Square area were pushed out too far. – Officers recommend bringing the work forward by one year. While this project is conservatively set to commence for 2020-23, any new decisions on revitalising Civic Square may drive the need to review this timing. Council can of course relook at its programme should priorities change and necessitate early action.

· Miscellaneous Street works – HCBA raised concern that some funds should be available for some reactive enhancements that could make a difference but not be too expensive. – Officers support that such a fund would be useful and have made space for a new priority listing allocating $100,000 between 2020/23. To keep within the $300,000 annual allocation, it was not possible to advance this money any earlier.

6.4 Officers have carried out the required final consultation and amended the Hastings CBD programme to best accommodate the HCBA’s aspirations while keeping within the annual funding allocation.

6.5 While the Havelock North CBD programme has gone into deficit already (in order to complete the Village Exchange street upgrade) the programme was fully endorsed and need not be amended at this stage.

6.6 By adopting Option 1, the Committee is endorsing the delivery of a programme that has been carefully considered, strategically planned and extensively consulted upon.

6.7 Should the Committee wish to amend or change the attached programmes, it could still adopt Option 1 and instruct officers to amend the programme accordingly. While this is a legitimate action, officers do advise that these programmes have been formulated after robust consultation with the relevant business associations. The actions respond to real challenges and opportunities here and now in our town centres. It is also noted that these programmes are flexible and Council can amend priorities as and when necessary, at its own discretion as needs change.

6.8 The programme of works has been balanced to fit within the available funding envelope, and has been signed off by the respective business associations in Hastings and Havelock North. The CBD upgrade programme is funded substantially (80%) via a targeted rate on properties within both the Hastings and Havelock North inner city areas. Therefore, should Council seek to amend the programme (and/or increase the cost of works) further liaison with the business associations would be recommended.

6.9 Conversely, by adopting Option 2, the Committee would oppose the strategic direction of development as identified by the representatives of both business associations and reinforced through shared widespread consultation.

6.10 Adopting Option 2 would mean the actions identified in the strategic urban planning documents for Hastings and Havelock North CBDs would not be supported nor realised. For this reason, Option 2 is not the preferred option.

7.0 PREFERRED OPTION/S AND REASONS

7.1 Option 1 is the preferred option.

7.2 By adopting Option 1 the Committee is endorsing past and present strategies to help create city centres that are vibrant, identifiable, easy to move around in, attractive and pleasant, while complementing the built environment in which they are surrounded.

7.3 The programme is also most importantly, listening to its town centre partners and supporting them with a balanced and affordable inner city work programme that is responsive, yet flexible enough to shift as priorities change.

8.0 RECOMMENDATIONS AND REASONS

A) That the report of the Projects and Public Space Manager and Parks and Property Services Manager titled “Hastings and Havelock North 10 year CBD upgrade programme” dated 14/02/2017 be received.

B) That the Hastings CBD and Havelock North CBD Upgrade Programme for 2016/26 (Attachments 1 and 2) be adopted.

C) That the 2018-2028 Long Term Plan provides for the ongoing funding of the programme of CBD works (20% general rate, 80% targeted rate) as outlined in the attached tables of Attachments 1 and 2 for Hastings and Havelock North.

With the reasons for this decision being that the objective of the decision will contribute to meeting the current and future needs of communities for good quality local infrastructure in a way that is most cost-effective for households and business by:

i) Contributing toward establishing a vibrant, functional and high amenity urban centres.

Attachments:

1	Revised Hastings CBD Upgrade Programme	CG-14-3-00001
2	Draft Havelock North CBD Upgrade Programme	STR-22-8-16-599

File Ref: 16/839

REPORT TO: Economic Development & Urban Affairs Committee

MEETING DATE: Tuesday 14 February 2017

FROM: Strategic Planner: Community

Cherie Flintoff

SUBJECT: Hastings Central City Vibrancy Plan (2016/17)

1.0 SUMMARY

1.1 The purpose of this report is to present to the Committee the updated Hastings City Centre Vibrancy Plan (2016/17) (the Vibrancy Plan 2016/17). This plan has been developed with partners and is provided on an information basis.

1.2 This report arises from earlier Council decisions on the Hastings City Centre Strategy (the Strategy). Implementation of the Strategy led to the Hastings City Centre Vibrancy Plan (2015/16) presented to Council in October 2015 and the expectation that Council will continue to work with key strategic partners to promote the achievement of action areas identified in the Strategy.

1.3 The Vibrancy Plan 2016/17 is the second annual implementation plan to support the Strategy, and follows the successful completion of ninety percent of the actions and initiatives contained within the Hastings City Centre Vibrancy Plan 2015/16. Key coordinating partners helped develop the Vibrancy Plan 2016/17 and are progressing the actions identified to build on the achievements to date.

1.4 The Council is required to give effect to the purpose of local government as prescribed by Section 10 of the Local Government Act 2002. That purpose is to meet the current and future needs of communities for good quality local infrastructure, local public services, and performance of regulatory functions in a way that is most cost–effective for households and businesses. Good quality means infrastructure, services and performance that are efficient and effective and appropriate to present and anticipated future circumstances.

1.5 The objective of this decision relevant to the purpose of Local Government is to ensure Council is working collaboratively with partners to support and coordinate the provision of good quality infrastructure and local public services, contributing toward a vibrant Hastings city centre that provides for the current and future needs of retailers and the local community in a cost-effective way.

1.6 This report concludes by recommending that the Committee receive the report titled Hastings City Centre Vibrancy Plan (2016/17), including the Hastings City Centre Vibrancy Plan (2016/17) (Attachment One).

2.0 BACKGROUND

2.1 In 2015 Council held a CBD Symposium. One of the key outcomes was the development of a Hastings City Centre Strategy.

2.2 The Vibrancy Plan 2016/17 is an annual joint operational plan of action between stakeholders and Council focused on Hastings’ city centre that gives effect to and supports the Hastings City Centre Strategy. It is premised on the principles of strategic collaboration and coordination to ensure the successful delivery of outcomes. It contributes to civic pride and is one component of the work being undertaken in the Hastings city centre.

2.3 There are number of longer-term projects like the Opera House and a ten year Hastings CBD upgrade plan that, where applicable, the Vibrancy Plan 2016/17 references for completeness. These significant initiatives are typically reported on separately.

2.4 The Hastings City Centre Vibrancy Plan 2015/16 was received by Council at its 29 October 2015 meeting. Ninety per cent of actions from that plan have either been completed, are in progress or are ongoing. Examples of the key initiatives (supporting images in Attachment Two) undertaken by the key partners under the 2015/16 Vibrancy Plan are:

2.4.1 The e-newsletter Your Hastings which is sent quarterly to over 400 Hastings city centre businesses and stakeholders and includes relevant news and updates.

2.4.2 A B2B (business to business) “Connect” networking event sponsored by a city centre business was held in April 2016, attended by approximately 120 city centre businesses, and another is planned for late February.

2.4.3 The installation of the Imagination Playground Blue Blocks and Chess Set at Albert Square.

2.4.4 Music events in the Mall and at Albert Square (including in partnership with ZEAL).

2.4.5 An international level Lego Exhibition at Hastings City Art Gallery with more than double the expected number of visitors.

2.4.6 Ongoing delivery of the Night Market, with themed nights.

2.4.7 Christmas 2015 promotions which included 70 Hastings central city retailers erecting Christmas trees outside their businesses, which local school children helped decorate.

2.4.8 The Fringe Festival in October 2016, driven by local businesses with strong support from Hastings City Business Association.

2.4.9 The Hawke’s Bay Arts Festival installation of The Cube in central Hastings in 2016 (free to visit, with a higher turnout than anywhere internationally to date).

2.4.10 The Icons Portrait history and art project which depicts a range of noted people with strong links to Hastings.

2.5 Benefits of jointly planning actions include:

2.5.1 Coordinating the actions Council and other partners are undertaking with vibrancy plan initiatives to ensure best value for the community.

2.5.2 Leveraging funds from other organisations and deliver better value from the investments made.

2.5.3 Ensuring that the central city can contribute to and gain value from events happening around the district / region.

2.5.4 Increasing the value and widening the community reach of activities and other work by jointly planning, delivering and promoting actions.

2.5.5 Providing more opportunities for community members to participate in the central city, enhancing civic pride.

2.5.6 Invigorating and supporting central city retailers, particularly those who take an active role in vibrancy initiatives.

3.0 CURRENT SITUATION

3.1 The Vibrancy Plan 2016/17 continues the good work put in so far by the partners and stakeholders and supports further coordinated work to invigorate the area.

3.2 Hastings’ city centre has seen consistently positive retail growth over the last 12 months. In the three months to September 2016 the 6.6 per cent growth rate of spending in Hastings, compared to the same period the previous year, has been nearly double the growth rate of 3.6% in spending for New Zealand overall.

3.3 Paymark figures for December 2016 again show Hawke’s Bay with the highest regional annual underlying growth, +10.9%, significantly higher than the national average underlying growth rate of +6.7%. Tourism spend in Hawke's Bay for the month of November 2016 was up 17 per cent compared with the month of November 2015.

3.4 The seed fund of $50,000 for ongoing activations in the city centre over 2016/17 was approved and included in the Annual Plan. This seed fund is used through the Vibrancy Plan 2016/17 as a lever to initiate activation initiatives, “co-funding” projects, where Council funds are matched or exceeded by non-council funds or in-kind contributions.

3.5 In addition, the Vibrancy Plan 2016/17, like its predecessor, contains an array of actions and activities that are fully-funded by Council or its partners via existing work programmes, such as ongoing city centre streetscape upgrade work and the Night Market. While the vibrancy seed money does not fund these actions they are included in the Vibrancy Plan 2016/17 as they contribute toward the vibrancy objectives of “more people”, “more business” and “more support”.

3.6 Officers have worked with coordinating partners: Hastings City Business Association, Arts Inc., Heretaunga (Creative Hastings) and Hastings District Council staff (including Landmarks support staff, HCAG and Libraries) and Ngati Kahungunu Iwi Inc. (a new partner in this year’s plan) to develop the attached Hastings City Centre Vibrancy Plan (2016/17). Many of the actions have already been progressed.

3.7 This is an annual vibrancy plan. If new ideas arise the plan allows partners to look at how they can accommodate them, or to plan new actions for the 2017/18 or later vibrancy plans.

3.8 The plan will be monitored by Council officers on a continual basis, with formal reporting to Council and/or committee at least six-monthly.

4.0 SIGNIFICANCE AND ENGAGEMENT

4.1 The work outlined in the Vibrancy Plan 2016/17 fits with Council’s outcomes related to:

· “Local Infrastructure” – supports growth, connects and activates communities;

· “Local Public Services” – helps meet the needs of young and old, visitors and locals, businesses.

4.2 This plan does not trigger Council’s Significance and Engagement Policy.

4.3 Key coordinating partners have been closely involved in developing the Vibrancy Plan 2016/17.

4.4 The Vibrancy Plan 2016/17 will be made available via Council’s website. Printed copies will also be available on request.

4.5 All property owners and Hastings City Business Association members will be informed that the Vibrancy Plan 2016/17 is available.

4.6 The plan provides a level of certainty as to the city centre initiatives that will take place annually. It is intended that actions will be updated each year and that the community will be engaged in this process.

4.7 The Vibrancy Plan 2016/17 has been developed in close consultation with other key coordinating partners and actions are underway. Revisiting the document at this point could cause delays and uncertainties for partners and the community. This is not recommended.

4.8 No new funding is required for this plan. HDC has a seed fund of $50,000 for ongoing activations in the city centre.

4.9 If Council wished to amend the Vibrancy Plan (2016/17), that would require further consultation with the key coordinating partners and decisions on funding for any additional budget required.

4.10 Councillors are able to separately provide new ideas for future vibrancy plans to officers, who would discuss the ideas with key coordinating partners.

4.11 The coordinating partners for the Vibrancy Plan 2016/17 are key local partners, and this work is also an effective way to strengthen these valuable relationships.

5.0 RECOMMENDATIONS AND REASONS

A) That the report of the Strategic Planner: Community titled “Hastings Central City Vibrancy Plan (2016/17)” dated 14/02/2017 be received, including the Hastings City Centre Vibrancy Plan (2016/17) (Attachment One).

With the reasons for this decision being that the objective of the decision will contribute to meeting the current and future needs of communities in a cost-effective way by:

i) Working with partners to support and coordinate the provision of good quality infrastructure and local public services, contributing toward a vibrant Hastings city centre that provides for the current and future needs of retailers and the local community.

Attachments:

1	Hastings City Vibrancy Plan	STR-22-8-17-663	Separate Doc
2	Hastings City Centre Vibrancy Plan Report Images November 2016	STR-22-8-16-634

File Ref: 17/70

REPORT TO: Economic Development & Urban Affairs Committee

MEETING DATE: Tuesday 14 February 2017

FROM: Economic Development Manager

Lee Neville

SUBJECT: Economic Development Activities for the Quarter ending 14 February 2017

1.0 SUMMARY

1.1 This report arises from a request by Councillors to receive a regular update on Economic Development activities.

1.2 The Council is required to give effect to the purpose of local government as prescribed by Section 10 of the Local Government Act 2002. That purpose is to meet the current and future needs of communities for good quality local infrastructure, local public services, and performance of regulatory functions in a way that is most cost–effective for households and businesses. Good quality means infrastructure, services and performance that are efficient and effective and appropriate to present and anticipated future circumstances.

1.3 The objective of Economic Development activity relevant to the purpose of Local Government is the provision of quality public services which are efficient and cost effective for households and businesses.

1.4 This report concludes by recommending that the report of the Economic Development Manager titled ‘Economic Development Activities for the quarter ending 14th February 2017’ be received.

2.0 BACKGROUND

2.1 The purpose of this report is to provide an update on economic activity for the quarter ending February 2017.

2.2 Council Economic Development activity areas focus on:

· Marketing the Hastings District Economy.

· Connect with Education

· Investment in the Hastings District

· Export Opportunities

· Improve Business Performance

2.3 Council Urban Affairs activity focus on:

· Residential Development

· Industrial Development

· Strategic Project Delivery

3.0 CURRENT SITUATION

3.1 Marketing the Hastings District Economy

3.2 Great Things Grow Here (GTGH)

Social Media Platforms

· Since April 2016 855,164 people have come into contact with GTGH.

· Over the Christmas / New Year period the GTGH Facebook page increased from 1024 followers to 2035.

Web Site

· Sections added to the site in December 2016:

- Homes for Business

- China Connection Programme

- Professional Services

- Community Engagement and Events

· GTGH site visitor “Time on Page”:

- Returning Visitors 51minutes.

- New Visitors 37 minutes.

· Two stories & videos are posted to the site daily.

Brand Champions

· GTGH has 175 businesses and organisations registered as Brand Champions.

· Larger, international organisations are joining the programme e.g. Turners & Growers Global.

· Seventy people attended the November Brand Champions event and feedback comments included:

“It was a good function with good speakers. Well done. Tony Gray”

“Great function, looking forward to the next one” Business Hawkes Bay

“It has been a long time since I left a function similar to last night’s feeling as enthused about what the message was. Thank you”. David Todd, Toddytalks.com

3.3 Connect with Education

3.3.1 Education Hawke’s Bay

· The Governance Group of Learning Hawke’s Bay has finalised the Strategic Framework and this was presented to the full membership group at the final meeting for the year in November. Work commenced with the regions of Taranaki, Manawatu and Whanganui to partner and work more closely with Massey University and to explore a combined regional delegation to the target market of China. Short Term Stay packages continued to be expanded with discussions taking place between the Hawke’s Bay Rugby Union, EIT, New Horizon College of English, Lindisfarne and Napier Boys High School to provide an English Language plus Rugby proficiency programme to the Japanese market.

· The latest visa data available Year to date (Jan – Sept 16):

First time student visas (FSV) up 14% (total of 52).

Total student visas (TSV) up 9% (total of 58).

· First Time Student Visas by major country – year to date:

China, up 82% (change of 23).

Japan, up 62% (change of 16).

India, down 28% (change of 41).

· The reduction in India student visas is due to an increase in the number of visas being declined by Immigration New Zealand across New Zealand.

3.4 Investment in the Hastings District

3.4.1 Attraction of Business Processing Centres

PLP Group are an overseas based Call Centre and Business Processing business that has located a branch in Hastings. The number of businesses contracting services to PLP Group has increased. The PLP Group processing centre staff numbers have increased from 12 in September 2015 to 30 currently. PLP Group are training 6 more staff currently.

3.4.2 Future Labour Demand

Identifying the future labour needs of the horticulture industry and barriers to the unemployed and school leavers entering horticultural workforce and associated manufacturing industry are part of the Matariki Regional Economic Development Strategy Action Plan with project partners Ministry of Social Development, IWI and Pip Fruit New Zealand (Action Plan 1.2).

The objective is to identify policy areas where change can be made to remove barriers to employment and support the transition of people to employment.

Officers have engaged in meetings with Ministry of Business Innovation and Employment, New Zealand Institute of Economic Research, Ministry of Social Development and Local Government New Zealand.

The next stage is to write a project plan followed by a Request for Proposal to identify the barriers to persons who are not in employment, education or a training scheme (NEETS) and the unemployed gaining employment.

A proposal will be sent to the Ministry of Social Development and the Ministry of Business Innovation and Employment for funding support to undertake consultation to inform the development of a business case.

3.5 Export Opportunity

3.5.1 China Connect Programme (CCP)

The Hawke’s Bay China Connection Programme is co-funded by businesses and is aimed at raising the awareness of Exporters and Importers to the opportunities in Greater China. The CCP is located on the Great Things Grow Here Website.

3.5.2 Hawke’s Bay Product Portfolio

To enable professional presentation of Hawke’s Bay brands and products that are likely to appeal to Chinese buyers or potential China market partners, both locally and in China. To date 7 businesses have provided branding and images for the Product portfolio which is being finalised.

3.5.3 E-Commerce Workshop

The workshop was held on 18^th October with 17 businesses attending. The guest speaker from NZTA-China Jerry Hong provided an overview of E-Commerce channels and Greg Driscoll, Director of GO Healthy NZ discussed actual examples of E-Commerce in the China market.

3.5.4 New Zealand Chinese-language Media Workshop

The Workshop was held on 9^th December with 15 businesses attending. The New Zealand Chinese media is a cost-effective first step to entering China markets. Paul Doyle from Niche Media presented research and provided recommended channels. Jim Poppelwell presented on social media platforms. A group exercise to design a media campaign was undertaken.

3.6 Improve Business Performance

3.6.1 Business Hawke’s Bay

Business Hawke’s Bay has three key result areas to deliver.

3.6.2 Key result Area 1:

Regional Collaboration-Hawkes Bay Business Hub

The number of visitors to the Hawke’s Bay Business Hub averaged 571 per month over 2016.

Hawke’s Bay Business Hub was chosen by Xero as the venue to hold candidate interviews, meetings and training events during December and extending into 2017 as they ramp up for their 2017 opening in Hawke’s Bay.

3.6.3 Key result Area 2:

Business Growth-Callaghan High Performance Work Initiative.

Seven Hawke’s Bay businesses are participating in the High Performance Work Initiative co-funded by Callaghan Innovation and the businesses participating. Three businesses are located in the Hastings District.

Results for two businesses that have completed the HPWI programme:

· Improved annual and quarterly planning.

· Over $40,000 cost savings

· 30% reduction in production lead times

· 3 New FTE’s employed

· Sales improved 140% in first quarter HPWI implemented

3.6.4 Key result Area 3:

Business Development

· A food labelling workshop including software to automate nutritional content labels was held and 10 food and beverage companies participated in the workshop and were able to sample the software.

· Business Hawke’s Bay has a contract to deliver improved and more cost efficient travel options between Hawke’s Bay and other New Zealand provincial centres and main cities with a focus on air travel. Funded jointly by NCC & HDC.A survey and analysis of 162 business traveller experiences was conducted and the findings from the survey has been presented to Jetstar Australia, Air New Zealand and the Hawke’s Bay Airport. Hawke’s Bay Airport now have free wi-fi as an outcome of the survey raising awareness of how important this was to travellers.

3.6.5 Hastings District Productivity Project

Hastings District Council are co funding four businesses in the Hastings District Productivity Project. The businesses employ 118 FTES currently.

Project Activities:

· Governance and Board structure

· Dashboard reporting, Costing systems and scheduling

· Identify resource capacity and systems to utilise the capacity

· Succession and recruitment planning (Potentially 5 Graduate positions)

· Management coaching and staff performance

4.0 Regional Economic Development Strategy

4.1 On 19 December 2016 the Regional Economic Development Strategy (REDS) Governance Group appointed Dr Alister King to be the Matariki REDS Programme Manager based at the Business Hub in Ahuriri.

4.2 The REDS Governance Group has engaged Martin Jenkins Consultancy to meet with REDS participants to discuss the review of the REDS delivery model.

4.3 This is action 1.1 in REDS.

4.4 Martin Jenkins Consultancy made a presentation on the draft proposal for a REDS delivery model to the REDS Governance Group on 26^th January 2017.

4.5 Feedback on the proposal was to be made to Martin Jenkins Consultancy by 7 February 2017.

4.6 The next REDS Governance Group meeting is on 16 February 2017.

5.0 Strategic Projects Programme

Industrial Development

5.1 The primary objective of this project is to facilitate the development of the Irongate and Omahu Road Industrial zones.

5.2 Programme of works encompassing both the Irongate and Omahu Road Industrial Zones have been established and are actively being delivered. The primary focus of these programs focuses upon the acquisition of land, and installation of services necessary to enable both these zones to be operationalised in a timely manner that coincides with market demand drivers.

5.3 Commissioner decisions regarding variations for both Omahu Road and Irongate are due March 2017, and pending Council resolution a 30 day appeal period will commence thereafter.

5.4 Irongate main trunk water and waste-water services installation is scheduled for completion by July 2017, and Omahu Road water, waste-water are targeted to be installed and operative by the end of December 2017.

5.5 Developer interest in both zones remains high with a number of new consents being granted in recent times, with more emerging.

5.6 Two project managers now oversee the delivery of this overall programme and all associated internal and external activities via a one program model. Working closely with the Economic Development Team, these Project Manager’s act as the key account point of contact for all Irongate and Omahu Road matters and continue to focus on building positive relationships with key external developers, landowners and stakeholders and deliver outcomes.

5.7 Further work is also taking place to strengthen and formalise the relationship between HDC and national pip fruit industry agencies and organisations. This will help to ensure HDC is best able to capture industry growth anticipated in the short to medium term.

City Centre /Commercial

5.8 A coordinated strategic project approach to developments in the Hastings City Centre, Havelock North and Flaxmere is being implemented.

Project activities:

· Opera House/ Civic Square Redevelopment

· City Centre Parks and recreation spaces

· Business Associations

· Resource, Building Consents

· Customer Relationship Management

· Accountability Register of Officer’s leading communications

· Potential Retail and Professional Developments

· Data and Web Maps of City Centre:

- Empty/Vacant buildings

- Buildings for Lease

- Buildings for Sale

- Buildings under Restoration

· Vibrancy Plan:

5.9 The 2017 Hastings City Centre Vibrancy Plan (VP) has been developed and is actively being delivered. The three primary objectives are focussed on more business, more people and more support.

5.10 The VP is being tabled at the February Economic Development and Urban Affairs Committee Meeting under a separate report for endorsement.

6.0 Key Economic Development Figures Hastings District

6.1 Progress on 1000 new Jobs in 5 years

YEAR	FILLED JOBS	CHANGE
2013	39,124
2014	39,908	+784
2015	39,999	+91
Total		875

6.2 Economic growth in the Hastings District is continuing to be positive. An example of this is illustrated by the following retail spending:

· Retail spending in the Hastings City Centre for the December 2016 quarter increased 3.8% over the same period last year.

· Retail spending in Havelock North for the December 2016 quarter increased 12.2% over the same period last year.

· Further information and infographics on the Hastings District is available on the GTGH website https://greatthingsgrowhere.co.nz/brand-champions/brand-champions-marketing-material/ . The infographics are updated quarterly and were not available at the time of writing.

7.0 RECOMMENDATIONS AND REASONS

A) That the report of the Economic Development Manager titled “Economic Development Activities for the Quarter ending 14 February 2017” dated 14/02/2017 be received. With the reasons for this decision being that the objective of the decision will contribute to meeting the cost-effective for households and business.

Attachments:

There are no attachments for this report.

File Ref: 17/78

REPORT TO: Economic Development & Urban Affairs Committee

MEETING DATE: Tuesday 14 February 2017

FROM: Project Manager - Strategic

Sam Faulknor

SUBJECT: Residential Growth Areas Update

1.0 SUMMARY

1.1 The purpose of this report is to update the Council on progress made to help enable new residential growth area land to be brought to the market for development.

1.2 This report seeks to highlight current growth areas, the number of potential housing units within these identified growth areas, the estimated timeframes to bring each area to the market, and the importance of applying a strategic managed approach.

1.4 This report concludes by recommending that the report be received.

2.0 BACKGROUND

2.1 The Heretaunga Plains Urban Development Strategy (HPUDS) 2010 was established to plan and allow for residential growth in Hawkes Bay. This strategy is a collaborative approach by the Hastings District Council, Napier City Council and Hawke's Bay Regional Council towards managing urban growth on the Plains from 2015 to 2045. The first review of the Strategy is close to being reported back to the three partner Councils.

2.2 In July 2016 the Hastings District Council held a Building Industries Forum on Residential Land Supply in response to concerns that difficulties in bringing the Arataki Extension and Lyndhurst areas to the market, as intended by HPUDS, were creating a “pinch point” in land supply in the face of an increasingly active property market nationally and locally.

2.3 Over 50 industry representatives attended the forum which was focused upon discussing residential development area planning demand and supply and how Council was responding to these parameters through growth planning activities. The primary objective of this forum was to better communicate with the private sector regarding current and future land supply and growth planning.

2.4 Greenfield site development within the Hastings District over the last ten years have largely been concentrated in Arataki, Northwood, and Lyndhurst Stage 1. The majority of the land in these areas now have residential dwellings built on them, however there remains some unbuilt lot capacity.

2.5 The HPUDS Review proposed adding Brookvale as a short to medium term replacement for the Arataki Extension, which has been deferred due to reverse sensitivity with the nearby mushroom farm, and the introduction of part of the Romanes Drive (amongst others) as a reserve area option for Havelock North.

3.0 CURRENT SITUATION

3.1 As at 31 December 2016 the number of existing vacant lots within the existing growth areas of Arataki, Lyndhurst Stage 1 and Northwood is 47, with a further 44 retirement unit lots at Lyndhurst.

Table 1. Arataki, Lyndhurst Stage 1, and Northwood Remaining Capacity

As of 31.12.17	Unbuilt Lot Capacity	New Lots Created	Building Starts	Balance lots Unbuilt	BC Issued/In Process	Short Term Lot Capacity Remaining	Lots yet to be Created	Total Remaining Capacity
Arataki	32	0	10	22	4	18	28	46
Lyndhurst Stage 1	14	0	17*	7	2**	6	71	77
Northwood	25	0	7	18	2	16	77***	93
Total	71	0	24	47	8**	40	176	216

* 10 of these are retirement unit on unit title basis so are not included as reducing lot supply in the rest of the table

** 1 of these is another retirement village and therefore not included for the purpose of lot supply reduction calculations

*** 41 of these are retirement village units are yet to be built

3.2 The future residential areas identified for future growth are; Lyndhurst Stage 2, Iona, Howard Street, Brookvale and Kaiapo. The estimated potential residential yield from these subdivisions is 1560.

3.3 All of these areas are in different stages of progress. Lyndhurst Stage 2, Iona and Howard Street are in the planning stages where either structure plans are being developed or in the case of Iona there is a Notification of Variation to the Proposed District Plan which is being progressed.

3.4 There is also emerging interest in the release of the wider Brookvale area, which if adopted as part of the 2016 HPUDS review, and provided it proves to be feasible, would substitute the originally planned Arakaki extension.

3.5 Kaiapo Road by comparison has potential for future growth however is still being assessed for feasibility.

Growth Planning

Table 2. Future Greenfield Areas and Estimated Yield

Area	Estimated Unbuilt Lot Capacity @	Estimated Subdivision Commencement
Lyndhurst Stage 2 Lyndhurst Stage 2	44 226	May 2017 November 2017
Howard	230	December 2017*
Iona	360	September 2018*
Brookvale	350	tbc
Kaiapo	350	tbc
Total	1560

* Timing is dependent on appeals process

Lyndhurst Stage 2

3.6 Lyndhurst Stage 2 is in northern Hastings. Apart from the 44 retirement sites currently under development, the majority of the land within Stage 1 has been subdivided and developed, and therefore the need to release the Stage 2 Area to accommodate future growth is now paramount.

3.7 The Stage 2 area of 30ha has a potential yield of 270 houses.

3.8 Discussions are currently being held with land owners to determine the location of a service corridor within the overall area and to finalise this agreement. The estimated cost for the services upgrade is $5.7m (as of July 2016). Additionally, the land owner of one block of land has lodged a consent to subdivide which indicates that subdivision (in the first of three stages) may occur around May 2017 and would provide an approximate housing yield of 44.

3.9 The Lyndhurst Stage 2 dates are subject to landowner negotiations and appeals process.

Iona / Havelock Hills

3.10 The Iona area, located in the Havelock Hills, is an identified HPUDS growth area which has been brought forward for development to offset the removal of the Arataki extension.

3.11 The Iona area occupies 72ha and has an estimated yield of 360 houses.

3.12 A Structure Plan is currently being determined by Council in partnership with a working group and adjoining landowners. Appeals to the Environment Court regarding this growth area has also been lodged. The servicing costs for the Iona area are estimated at $5.7m (as of July 2016). Due to ongoing Appeals to the Environment Court the estimated subdivision date is September 2018.

Howard Street

3.13 Howard Street is located next to Parkvale School with a total development area of 21ha. The potential housing yield for this area is 230.

3.14 The structure plan for this area is complete, hearings have been held and recommendations from Commissioners to Council are expected by the end of February 2017.

3.15 The estimated cost of services for Howard Street is $3.3m (as of July 2016). The estimated subdivision date for this area, subject to landowner negotiations and appeals process, is anticipated to be December 2017. Indications from land owners is that they are eager to develop as soon as the necessary regulatory processes have been completed.

Brookvale Area

3.16 The Brookvale Area is a space with potential for development in the short to medium term. The Brookvale Area has been identified as part of the 2016 HPUDS review as a growth area to substitute the loss of the Arataki extension area originally proposed in HPUDS.

3.17 The total area of Brookvale is 26ha with an estimated housing yield of 350.

3.18 The HPUDS Hearing Committee will formally makes recommendations, including whether the Brookvale Area will be formally included, to Council by the end of March 2017.

3.19 Developer interest in the Brookvale area is building, and officers are in active dialogue with potential developers.

3.20 Service costs have not been estimated as yet, nor are there indicative dates for subdivision.

Kaiapo Road

3.21 The Kaiapo area is a location to the north of Hastings. This area is still being scoped for feasibility and timing and an updated consultant’s report is expected in February 2017.

3.22 The initial estimate of housing yield for this site is 350.

3.23 The 2011 Priorities and Sequencing Report tentatively had Kaiapo commencing in the 2021-26 period.

Market Drivers

3.24 A Market Demand Report was completed by Telfer Young Hawkes Bay Ltd in March 2016. This report states that while Hastings has housing supply from the existing Northwood and Lyndhurst Stage 2 areas, additional areas will need to become available due to the Arataki extension now being on hold. Future supply areas have been identified in Brookvale and Kaiapo.

3.25 Key findings of this report are noted below:

3.26 The majority of new residential development is occurring in the upper medium price bracket from $325,000 (for smaller infill developments) to $650,000 for good quality four bedroom homes in new greenfield subdivisions, house and land packages.

3.27 These levels compare to the current median home price for Hawkes Bay of approximately $310,000.

3.28 There is a transition of people from lower priced existing stock to new housing with first home buyers moving into the lower price existing stock. This acts to reduce the impact that the lack of affordability of new housing has on the market.

3.29 Developer responses indicate a strong preference for land in upper medium price brackets. While there is likely to be demand for lower priced residential sites, the associated lower profit margins, higher relative development levies and higher risk factors are likely to dissuade potential developers from working in this sector.

While there is likely to be demand for lower priced residential sites, the associated lower profit margins, higher relative development levies and higher risk factors are likely to dissuade potential developers from working in this sector.

Communication and Engagement

3.30 A communication and engagement plan has been established to ensure clear, consistent and regular communication and engagement with stakeholders. Communication will make use of sector data and trends to keep parties fully informed. Target audiences include but are not limited to real estate agents, builders, developers, land owners and stakeholders.

3.31 Officers will provide the Committee with a verbal update on the rollout of communication initiatives at the meeting.

Programme Management

3.32 Council has implemented a strategic project managed approach to oversee the residential growth area work program. This process has involved the appointment of a dedicated council project manager to coordinate all council residential processes.

Strategic Approach to Residential Uptake

3.33 Building relationships, integrity, and providing accurate information forms part of the strategic approach to residential uptake. A focus will be placed on improving stakeholder satisfaction, timely analysis of market data, and ensuring the long-term success of projects. A key objective is to enable growth while adhering to Council policies and meeting community needs.

3.34 In addition, the recent National Policy Statement on Urban Development Capacity will likely increase the requirement for and availability of market data for planning purposes. A separate report on this will be presented to Council as the government guidance on it implementation becomes clearer.

4.0 SIGNIFICANCE AND ENGAGEMENT

4.1 This report does not trigger Council’s Significance and Engagement Policy and no consultation is required.

5.0 RECOMMENDATIONS AND REASONS

A) That the report of the Project Manager - Strategic titled “Residential Growth Areas Update” dated 14/02/2017 be received.

With the reasons for this decision being that enabling the supply of greenfield residential sections to meeting the current and future market demand and contributes to meeting the current and future needs of communities for good quality local infrastructure and local public services by:

i) Applying robust project and program management process.

Attachments:

1	Lyndhurst Stage2 Area map	CG-14-3-00005
2	Howard Street Area map	CG-14-3-00007
3	Iona Area map	CG-14-3-00003
4	Brookvale Area map	CG-14-3-00006
5	Kaiapo Area map	CG-14-3-00004

Hastings District Council

Lyndon Road East, Hastings