Auckland Tourism, Events and Economic Development (ATEED) will move to a new location in Victoria St West at the end of this year.
ATEED’s head office has been in the ANZ building in Quay St for most of the organisation’s seven years in operation, but it’s lease runs out in December this year with no automatic right of renewal.
After a detailed assessment and short-list selection process involving Auckland Council’s property unit, the ATEED Board approved the move for the organisation’s head office to the Spark Building – with a nine-year lease signed this week.
ATEED Chief Executive Nick Hill says the move will enable ATEED to better deliver its refreshed economic growth programme in collaboration with its many private and public sector partners.
“Securing greater value for money for ratepayers in our new home was a crucial factor, and the move will mean we pay about $6.2 million less across the lease term than we would have had to pay to stay in our current offices,” says Nick Hill.
He says ATEED’s ability to deliver on the Mayor’s and Council’s economic growth priorities was equally as important in the decision.
“The Spark Building is close to many of ATEED’s major innovation, business and investment attraction, and industry partners – including commercial accommodation providers and the tech industry. Businesses are our most important customers, so being near key ones makes absolute sense.
“The corridor from SKYCITY and the new international convention centre down to the thriving innovation precinct and hotel zone at Wynyard Quarter is the epicentre of our work, and we will be in the middle of it,” says Nick Hill.
ATEED is striving to increase its efficiency and effectiveness. The preferred new site will allow ATEED to better meet its business customers’ needs with more shared space for more flexible working practises. That has reduced the amount of floor space the organisation requires.
It is also closer to Auckland Transport, and Panuku Development Auckland – the main Council group agencies ATEED works with to drive Auckland’s growth.
“We will be able to work more efficiently and dynamically. Another big factor in the move is the Spark Building’s five-star energy rating, which matches Council’s sustainability priorities and also reduces operational costs,” says Nick Hill.
Council’s Finance & Performance Committee has approved $3.2 million in capital expenditure for the fit-out of ATEED’s new premises. That is an estimated $600,000 less than it would have cost ATEED to re-fit the current Quay St building which is overdue for a scheduled upgrade after six years.
“The figure we requested includes significant sums for margins and contingencies, and we will strive to make the final fit-out cost substantially lower than the expenditure approved,” says Nick Hill.
The fit-out cost will be depreciated across the new lease term.
Signing the new deal now provides ATEED with certainty and the time to plan for the transition to the new site at the end of 2018.
Q&As ABOUT ATEED’S OFFICE MOVE:
Why hasn’t ATEED moved to another Auckland Council property?
That possibility was one of the four options short listed at the start of the process. It was discussed with Auckland Council’s property team and advice received was that there were no Council buildings in the central city with vacant capacity to house ATEED’s staff from December 2018. There is no certainty that 135 Albert St would have any availability for ATEED’s 200 staff in the foreseeable future. ATEED has to move forward with its lease process given its current lease expires at the end of this year with no right of renewal.
It is important to note that while ATEED is a Council Controlled Organisation, it must be independent in terms of governance, and be seen to remain at arms’ length of its Council parent – while making use of shared services and efficiencies where appropriate. Working in the same main building would require careful management of independence aspects, even if capacity was available.
Will ATEED main office and its hubs relocate to the new site?
Only the head office staff will relocate. ATEED will maintain its north, west and south hubs, which are mainly in Council offices under a shared services agreement.
What other costs are involved?
The physical move will cost an estimated $30,000, and there is an $800,000 ‘make good’ cost for the Quay St office – that is a common lease clause which involves ATEED as tenant returning the two floors it leases to the condition they were in when it moved in, in 2011.