Media release

19 July 2012

Council to relocate CBD staff for long-term financial gains

Auckland Council has agreed to buy 135 Albert Street, known as the ASB headquarters, for $104 million with the aim of moving the majority of its central city staff into one location over the next year or two.

The council can purchase and operate the Albert Street site for, on average, $2.7 million per year for the next 10 years less than it currently costs to maintain its current mix of rented and owned CBD accommodation.

“This is a sound investment we are making on behalf of the people of Auckland, which will produce significant savings for ratepayers now and in the future,” said Auckland Council chief executive Doug McKay.

“At the moment our city staff are spread around seven central locations, some of which are rented. This purchase will enable council to house more staff in a single building, saving employees’ time and transportation between council offices, and allowing our people to work smarter for the long-term benefit of Aucklanders and the region.”

Mr McKay says that CBD staff had for 20 months worked out of an ad hoc combination of owned and leased buildings and this expensive arrangement must cease. The unique occurrence of ASB Bank’s relocation to the waterfront creates a rare opportunity in Auckland’s existing civic precinct, which meets the council’s needs both now, and for years to come.

Auckland Council examined a range of options for its new premises including the building of offices on council land, and the lease of offices on privately owned land, which included the redevelopment of the existing Civic building site. The purchase of 135 Albert Street proved to be the most cost-effective option, while giving the council greater control over its building service costs, guaranteeing security of tenure and removing the uncertainty of periodic lease negotiations.

The current council headquarters, the 46-year-old Civic building, would require expensive and significant improvements to extend its use, said Mr McKay. The Civic building currently accommodates 560 staff, whereas the Albert Street site will be able to house an estimated 2,400, as well as providing 1,200m2 of dedicated civic space for public meetings and functions.

Council’s CBD staff are currently scattered throughout the Civic building, 360 Queen Street, 8 Hereford Street, Bledisloe House, the Town Hall, along with locations in Graham and Pitt streets.

“We see moves to co-locate our central city staff as an important part of achieving productivity gains and lowering our cost base, while transforming our level of service to ratepayers and the wider community. Auckland Council inherited a diversity of accommodation arrangements, and there will be real gains to be made as we have more staff under one roof,” he said.

The council will start moving employees into the building in late 2013, as current lease agreements expire.

Ends

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