Basin Bridge project. Technical Report No 17.
Technical Report No 17
THE BASIN BRIDGE PROJECT
ASSESSMENT OF ECONOMIC EFFECTS
Prepared for
New Zealand Transport Agency
By
Brown, Copeland & Co Ltd
5 June, 2013
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CONTENTS
1. EXECUTIVE SUMMARY 3
2. INTRODUCTION 4
Qualifications and Experience 4
Purpose and Scope of Report 4
3. THE IMPORTANCE OF EFFICIENT INFRASTRUCTURE TO WELLINGTON CITY 4
4. PROJECT DESCRIPTION 5
Wellington Northern Corridor Road of National Significance 5
Existing and Future Environment 6
Project Objectives 7
The Project 8
5. ECONOMICS AND THE RESOURCE MANAGEMENT ACT 9
Community Economic Wellbeing 9
Economic Efficiency 9
Viewpoint for Economic Assessment 10
With and Without Analysis 11
Intangible or Non-monetarised Effects 11
6. CONVENTIONAL COST BENEFIT ANALYSIS 12
7. WIDER ECONOMIC BENEFITS 15
8. BUSINESS REDISTRIBUTION EFFECTS 16
9. INCREASED ECONOMIC ACTIVITY DURING PROJECT CONSTRUCTION AND OPERATION 18
Project Construction 18
Project Operation 19
10. PROPERTY VALUE EFFECTS 20
11. CONCLUSIONS 21
Appendix 17.A Detailed Project Description 22
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1. EXECUTIVE SUMMARY
(i) The purpose of this report is to assess the economic effects of the proposed Basin Bridge Project (the Project).
(ii) The Project will improve the efficiency of Wellington City’s road network around the Basin Reserve and to and from the Basin Reserve. These improvements relate to the movement of both people and freight and will contribute to the City’s productivity and competitiveness.
(iii) The economic wellbeing of people and communities and the efficient use of resources are relevant considerations under the RMA. The Project will enable people and communities to provide for their economic wellbeing and represents an efficient use of resources.
(iv) The New Zealand Transport Agency (NZTA) project evaluation procedures and database have been used to assess the efficiency of the Project. These procedures and database are based on international best practice and have been refined over many years on the basis of local and international research and investigation.
(v) Using the NZTA project evaluation procedures and database, the Project achieves a benefit cost ratio (BCR) of 1.2. In addition:
a. The Project is an integral part of the Wellington Northern Corridor Road of National Significance (RoNS) investment package which also has a BCR of 1.2, and for which the NZTA has ascribed ‘high’ ratings for strategic fit and effectiveness; and
b. The BCR for the Project has been calculated using a national rather than Wellington City or Wellington regional viewpoint. Adopting a Wellington City or Wellington regional viewpoint would yield a much higher BCR.
(vi) Most of the businesses on or near the roads affected by the Project are not so dependent on the passing motorized trade or on-street peak hour parking directly outside their businesses that they will be significantly affected by the Project. The Project will potentially have some negative business redistribution effects for a small number of businesses. However these business redistribution effects will not be of such significance that they will affect public amenity values in the vicinity of the Basin Reserve. The grade separation at the Basin Reserve is expected to facilitate improvement of the local traffic network and therefore have positive impacts for some businesses.
(vii) During the construction phase of the Project, there will be benefits for businesses and residents in Wellington City and region as a consequence of additional economic activity generated within the City and region.
(viii) During the operational phase of the Project, there will be significant traffic related benefits to businesses and residents in Wellington City and region as well as benefits from increased economic activity.
(ix) The Project will enable improved public transport services and facilitate increased intensity of residential and commercial development along parts of the Wellington City Council’s proposed growth spine.
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2. INTRODUCTION
Qualifications and Experience 2.1 This report has been prepared by Mr Michael Copeland, a consulting
economist and managing director of Brown, Copeland and Company Limited. He has undertaken a wide range of studies for public and private sector clients in New Zealand and overseas. Mr Copeland holds a Bachelor of Science degree in mathematics and a Master of Commerce degree in economics. He has over 35 years’ experience in the application of economics to various areas of business including transport economics and resource management matters.
Purpose and Scope of Report
2.2 The purpose of this report is to assess the economic effects of the proposed
Basin Bridge Project (the Project). The Project proposes to grade separate east-west traffic from north south traffic movements. The proposed works entail modification to the State highway and local roads around the Basin Reserve, and includes consequential modifications on roads leading to and from the Basin Reserve area.
2.3 The remainder of this report is in nine parts, which cover:
2.3.1 the importance of efficient infrastructure to Wellinton City;
2.3.2 the Project description;
2.3.3 economics and the Resource Management Act;
2.3.4 conventional cost benefit analysis;
2.3.5 wider economic benefits;
2.3.6 business redistribution effects;
2.3.7 increased economic activity during Project construction and operation;
2.3.8 property value effects; and
2.3.9 conclusions.
3. THE IMPORTANCE OF EFFICIENT INFRASTRUCTURE TO WELLINGTON CITY
3.1 Improving (or retaining) the efficiency of infrastructure, such as the roading network within Wellington City, contributes to the productivity and competitiveness of the City’s businesses. In turn this assists employment and income growth (or retention). The City’s residents benefit from increased (or retained) employment opportunities and income.
3.2 Also the City’s residents benefit from reductions in travel times, reductions in
vehicle operating costs, reductions in accident costs, improvements in trip time reliability and reductions in public transport costs. In the case of public
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transport cost savings, residents benefit from lower fares and/or reduced ratepayer subsidization of public transport.
3.3 Visitors to Wellington City also benefit from the efficiency of the City’s
transport network being improved. By making Wellington a more attractive place to visit, the City’s reputation as a tourism destination is enhanced with consequent benefits for those engaged in the local tourism industry. This is especially important for Wellington City, which has a growing reputation as a compact city, facilitating high levels of mobility for visitors and residents alike.
3.4 Wellington City currently faces a number of economic challenges, given its
reliance on the office sector and the drift north within New Zealand and overseas of head office functions. Maintaining and enhancing the attractiveness of the City in which to do business, reside and visit helps to counter this threat.
3.5 The Project has among its objectives “to support regional economic growth
and productivity by contributing to the enhanced movement of people and freight through Wellington City; and by in particular improving access to Wellington’s CBD, employment centres, airport and hospital”. The Project is therefore consistent with addressing the economic challenges faced by the City.
4. PROJECT DESCRIPTION
Wellington Northern Corridor Road of National Significance
4.1 The 2009 Government Policy Statement identified seven roads of national significance (RoNS) throughout New Zealand that the government has signalled will be the focus for investment in order to achieve economic growth over the next 10 years. One of these is the Wellington Northern Corridor RoNS from Wellington International Airport to Levin.
4.2 The NZ Transport Agency’s (NZTA’s) objectives for the Wellington Northern Corridor RoNS are:
a. to enhance inter-regional and national economic growth and productivity, by supporting a growing population and increasing freight volumes in the region;
b. to improve access to Wellington’s central business district, key industrial and employment centres, port, airport and hospital;
c. to provide relief from severe congestion on the State highway and local road networks;
d. to improve the journey time reliability of travel on the section of State Highway 1 between Levin and Wellington Airport; and
e. to improve safety of travel on State highways.
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4.3 The Project is one of eight sections of the Wellington Northern Corridor RoNS.1 It forms part of the Tunnel to Tunnel package of works that in combination will improve traffic and transportation between the Terrace Tunnel and Mount Victoria Tunnel. The Tunnel to Tunnel package also comprises undergrounding of Buckle Street as part of the Memorial Park project by the Ministry of Culture and Heritage. This project is currently under construction and expected to be completed by the end of 2014.
4.4 Other NZTA studies of SH1 sections that are also being considered or are being progressed concurrently within Wellington are:
a. duplication of Mount Victoria Tunnel (construction planned to commence in 2017/18);
b. duplication of the Terrace Tunnel (subject to feasibility investigation in 2013/14); and
c. roading improvements along Cobham Drive and Ruahine Street (construction planned to commence in 2017/18).
4.5 While there are linkages between these projects, each one is complex and involves the significant use of resources. I am advised that as a consequence, each project is being progressed separately while maintaining the appropriate design standard and specification in order to achieve the NZTA’s strategic objectives for the RoNS.
Existing and Future Environment
4.6 The Basin Reserve is located to the southeast of the Wellington CBD. The transport network around the Basin Reserve is required to accommodate east-west and west-east traffic flows, and also significant north-south and south-north traffic flows between the Wellington CBD and Wellington’s southern suburbs. This involves a combination and interaction of local road network users and SH1 national and regional road users.
4.7 The area around the Basin Reserve comprises a mix of land uses, including commercial, residential and institutional uses, with some significant community facilities. The Basin Reserve is used for national and international cricket fixtures and other recreational events, which can result in significant numbers of pedestrian movements in and around the Basin Reserve. In addition, approximately 3,000 students attend the three schools within close proximity to the Basin Reserve. While many students use public transport and private cars, they, together with ‘commuters’, generate a large number of pedestrian movements in and around the Basin Reserve. The Basin Reserve area is also home to several churches and Massey University’s Wellington Campus.
4.8 Features of national significance in or surrounding the Project area include Government House to the south east of the Basin and the National War
1 The Petone to Grenada project is not part of the Wellington Northern Corridor RoNS, but will also provide
relief on SH1 (and SH2) north of Wellington City if and when it is constructed. This project has not been included as part of the network in estimating the BCR for the Basin Bridge Project. However it has been included as part of the network when examining the 2031 traffic effects of the Project in Technical Report 4 – Assessment of Traffic and Transportation Effects.
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Memorial to the west of the Basin on Buckle Street. Overseas dignitaries visiting New Zealand use the road around the Basin Reserve to access Government House, and during formal processions between Government House and Parliament.
4.9 As part of the Wellington City Council’s (WCC’s) Urban Development Strategy2, the WCC, within its planning process, seeks to create a growth spine between Johnsonville, Newtown and Kilbirnie. This includes the Adelaide Road Framework, which aims to enable intensive residential development among other goals. The Framework proposes a more intensified urban form entailing some redevelopment along Adelaide Road (a key road that connects to the south of the Basin Reserve).
4.10 In conjunction with this intensification, WCC and the Greater Wellington Regional Council (GWRC) in partnership with the NZTA are undertaking a Public Transport Spine Study that is investigating development of a high quality passenger transport corridor between the Hospital at Newtown and the Railway Station.3 In the short term, the level of service for passenger transport is proposed to be improved through the provision of dedicated bus lanes by the Project. In the longer term, light rail or high quality buses using the latest electronically guided technology may be considered.
Project Objectives
4.11 The objectives of the Project are:
4.11.1 To improve the resilience, efficiency and reliability of the State highway network:
a. by providing relief from congestion on SH1 between Paterson Street and Tory Street;
b. by improving the safety for traffic and persons using this part of the SH1 corridor; and
c. by increasing the capacity of the State highway corridor between Paterson Street and Tory Street.
4.11.2 To support regional economic growth and productivity:
a. by contributing to the enhanced movement of people and freight through Wellington City; and
b. by in particular improving access to Wellington’s CBD, employment centres, airport and hospital.
4.11.3 To support mobility and modal choices within Wellington City:
a. by providing opportunities for improved public transport, cycling and walking; and
b. by not constraining opportunities for future transport developments.
2 Published in 2006. 3 NZTA has undertaken an exercise to ensure that the Basin Bridge Project is compatible with emerging
options from the Public Transport Spine Study.
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4.11.4 To facilitate improvements to the local road transport network in Wellington City in the vicinity of the Basin Reserve.
The Project 4
4.12 The Project proposes to construct, operate and maintain new transport infrastructure for State Highway 1 at the Basin Reserve. A key component of the proposal is a multi-modal bridge that connects Paterson Street with Buckle Street. The bridge will provide a two lane one-way carriageway for SH1 westbound road users and includes a shared walking and cycling path on its northern side.
4.13 Proposed at-grade road improvements include changes to Dufferin Street and sections of Paterson Street, Rugby Street (including the intersection with Adelaide Road), Sussex Street, Buckle Street (SH1), Taranaki Street, Vivian Street (SH1), Pirie Street, Cambridge Terrace, Kent Terrace (SH1), Ellice Street and Hania Street.
4.14 The Project also provides urban design and landscape treatments. These include new landscaped open space areas, a new building under the bridge on the corner of Kent Terrace and Ellice Street, a new entrance and Northern Gateway Building to the Basin Reserve, an improved streetscape entrance to Government House and adjacent schools, a modified car park for St Joseph’s Church, dedicated bus lanes and bus stops around the Basin Reserve, as well as new walking and cycling paths.
4.15 Proposed landscaping and urban design treatments include low level plantings, raingardens, trees, terracing, architectural bridge design including sculptured piers, furniture and paving. These measures aim to contribute to the overall integration of the proposed bridge structure into the surrounding urban environment.
Transport improvements
4.16 The Project proposes a grade-separated route (the bridge element) for SH1 westbound traffic on the northern side of the Basin Reserve. As a result, SH1 traffic will be removed from the local road network around the eastern, southern and western sides of the Basin Reserve.
4.17 The bridge soffit will be up to 7.3m above the ground surface and the top of the guard rail will be up to 10.5m high above the ground. The bridge is approximately 263m long or 320m long if both abutments are included. It will be supported by six sets of piers (2 are double piers) and six smaller piers to support the western end of the shared pedestrian and cycleway where it splits away from the main bridge structure. The bridge has a minimum width of approximately 11.3m and a maximum width of approximately 16.7m. There are two bridge joins, one at each end.
4.18 The Project proposes changes to the SH1 westbound route, the SH1 eastbound route, and other roads on the network where they connect with SH1, including clearways on the eastern part of SH1 Vivian Street (from Tory
4 Further details on the Project description are contained in Appendix 17.A of this report.
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Street to Cambridge Terrace). These propose to improve the efficient and safe movement of traffic (including buses), pedestrians and cyclists through intersections and provide entry and exit points for SH1. Supplementary works on the existing local road network are also proposed to be undertaken to take advantage of the additional capacity created by the SH1 improvements.
4.19 The Project proposes new pedestrian and cycling routes throughout the Project area as well as improvements to existing infrastructure. The majority of the works to improve the walking and cycling routes are located on the north side of the Basin Reserve and connect with Mount Victoria suburb, Mount Victoria Tunnel and schools on Dufferin Street. These improvements will connect with the National War Memorial Park which is currently under construction and also with potential future duplication of Mount Victoria Tunnel.
4.20 A reduction in State highway traffic on the roads around the Basin Reserve allows for more efficient northbound and southbound movements from Kent and Cambridge Terrace to Adelaide Road. Accordingly, new dedicated bus lanes are proposed to provide for better public transport movements around the Basin Reserve.
5. ECONOMICS AND THE RESOURCE MANAGEMENT ACT
Community Economic Wellbeing
5.1 Economic considerations are intertwined with the concept of the sustainable management of natural and physical resources, which is embodied in the Resource Management Act (RMA). In particular, section 5(2) refers to enabling “people and communities to provide for their … economic ... well being” as part of the meaning of “sustainable management”, the promotion of which is the purpose of the RMA.
5.2 As well as indicating the relevance of economic effects in considerations under the RMA, section 5 also refers to “people and communities” (emphasis added), which highlights that in assessing the impacts of a proposal it is the impacts on the community and not just the applicant or particular individuals or organisations, that must be taken into account. This is underpinned by the definition of “environment” which also extends to include people and communities.
Economic Efficiency
5.3 Section 7(b) of the RMA directs that in achieving the purpose of the Act, all persons “shall have particular regard to ... the efficient use and development of natural and physical resources” which includes the economic concept of efficiency.5 Economic efficiency can be defined as:
“the effectiveness of resource allocation in the economy as a whole such that outputs of goods and services fully reflect consumer preferences for these
5 See, for example, in Marlborough Ridge Ltd v Marlborough District Council [1998] NZRMA 73 at [86], the
Court noted that all aspects of efficiency are “economic” by definition because economics is about the use of resources generally.
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goods and services as well as individual goods and services being produced at minimum cost through appropriate mixes of factor inputs.” 6
5.4 More generally, economic efficiency can be considered in terms of:
5.4.1 maximising the value of outputs divided by the cost of inputs;
5.4.2 maximising the value of outputs for a given cost of inputs;
5.4.3 minimising the cost of inputs for a given value of outputs; and
5.4.4 minimising waste.
Viewpoint for Economic Assessment
5.5 An essential first step in carrying out an evaluation of the positive and negative economic effects of a project is to define the appropriate viewpoint that is to be adopted. This helps to define which economic effects are relevant to the analysis. Typically a city (district) or wider regional viewpoint is adopted and sometimes a nationwide viewpoint might be considered appropriate.
5.6 For the Basin Bridge Project, Wellington City is a relevant community of interest, because the economic effects of the Project will largely (but not solely) impact on the residents and businesses in the City. The wider Wellington region is also a relevant community of interest, particularly in the context of the Project forming part of the Wellington Northern Corridor RoNS. Because of its scale and the fact that it is funded by the NZTA (a central government agency), the national economic effects of the Project are also relevant. This is again under-scored by the Project being part of the Wellington Northern Corridor RoNS, which is included in the Government’s portfolio of RoNS.
5.7 Generally with projects considered under the RMA7, the financial or commercial ‘business case’ analysis undertaken from the viewpoint of the project proposer is considered to be irrelevant since this is an analysis of private costs and benefits rather than the cost and benefits for “people and communities.” Relevant in such cases are only the so called ‘externalities’ – i.e. those side effects of the project which affect third parties other than the buyer and seller.
5.8 In this respect the ‘business case’ analysis undertaken by the NZTA in relation to the Basin Bridge Project (and other road improvement or alternatives to roading projects) is unusual in that the analysis is undertaken not from its own narrow NZTA perspective but from a broader national perspective with the costs of the Project compared to road user and other benefits. Also as the
6 Pass, Christopher and Lowes, Bryan, 1993, Collins Dictionary of Economics (2nd edition), Harper Collins,
page 148. 7 For example new supermarkets for Foodstuffs, a new cement plant for Holcim (NZ) Limited, renewal of gold
mining resource consents for Oceana Gold (NZ) Ltd and a new power station for Meridian Energy Ltd.
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Board of Inquiry for the Transmission Gully Notices of Requirement and Consents8 concludes
“… while it is not for the Board to tell NZTA how to spend its money, the efficient use of natural and physical resources is a matter to which the Board is required to have particular regard pursuant to s7(b) RMA. That particular regard extends to issues of economic efficiency.”
5.9 However the NZTA’s quantified assessment of the Project’s efficiency only in part addresses “… people and communities … economic … wellbeing” and “... the efficient use and development of natural and physical resources” as required under the RMA in that:
5.9.1 not all costs and benefits are included in the NZTA’s quantified assessment; and
5.9.2 the NZTA’s quantified assessment is from the national viewpoint. It does not consider the efficiency of the Project from a Wellington City or Wellington regional viewpoint.
5.10 These factors are considered later in this report.
With and Without Analysis
5.11 In analysing the economic effects of the Project, it is necessary to compare two forward looking scenarios (‘with Project’ versus ‘without Project’), rather than a ‘before’ and ‘after’ comparison. This means the proper baseline for evaluating future economic (and non-economic) effects of the Project are the future volumes of traffic on the network without the Project, not current traffic volumes.
Intangible or Non-monetarised Effects
5.12 In economics, ‘intangible’ costs and benefits are defined as those which cannot be quantified in monetary terms. For any project such effects may include amenity effects, landscape effects, ecological effects, Māori cultural and relationship effects and recreational effects. Such effects may be positive or negative – i.e. a benefit or a cost for a particular community of interest.
5.13 Sometimes attempts can be made to estimate monetary values for so called ‘intangibles’ using techniques such as willingness to pay surveys or inferring values on the basis of differences in property values. However these techniques are frequently subject to uncertainty and criticism.
5.14 It is generally better not to attempt to estimate monetary values for these effects but to leave them to be part of the overall judgement under section 5 of the RMA. This also avoids the danger of ‘double-counting’ – i.e. including them within a quantified measure of efficiency and treating them as a separate
8 See paragraph 244 of Final Report and Decision of the Board of Inquiry into the Transmission Gully
Proposal; Volume 1; June 2012.
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consideration in the overall judgement under section 5.9 The ‘intangible’ effects of the Project are considered in a number of the other Technical Reports of the AEE.
6. CONVENTIONAL COST BENEFIT ANALYSIS
6.1 Conventional cost benefit analysis of road improvement projects involves comparison of project benefits (including vehicle operating cost savings, travel time cost savings, accident cost savings and trip travel time reliability improvements) with project costs (including capital costs and changes in operation and maintenance costs).
6.1 The methods used to estimate the benefits and the costs together with the procedures to adopt for their evaluation are set out in the NZTA’s Economic Evaluation Manual (EEM)10 and are based on considerable local and international research. The methods and data have been refined over a number of years. They are consistently applied over all road improvement project evaluations and alternatives11 to roading project evaluations seeking funding from the NZTA. This is done to assist with the ranking of alternative NZTA and certain12 local authority projects.13
6.2 In New Zealand (and overseas) a discount rate is used to cover the time value of money and the opportunity cost of funds (i.e. the returns available from alternative road improvement projects, other government projects or programmes and/or private sector use of funds). The discount rate used for many years for roading projects and other public sector investment projects was 10%14, but in recent years this has been reduced to 8%.
6.3 The benefits of a project are divided by the costs of the project (incorporating a cost of funds (the discount rate) of 8% in real terms – i.e. excluding the effects of inflation) to derive a benefit cost ratio (BCR). If the BCR is greater than 1, project benefits exceed project costs and generally this is interpreted as meaning that the use of funds for the project will be an efficient use of resources.
6.4 However, as noted earlier in this report, not all the costs and benefits of a project can be quantified in monetary terms. ‘Intangibles’ will need to be considered outside the quantitative BCR calculation and decision-makers will need to ‘trade off’ the BCR against any positive or negative ‘intangible’ effects.
6.5 NZTA’s BCR is calculated from the national perspective. It is a measure of national economic efficiency. It does not provide information about the distribution of costs and benefits. However, with respect to the Basin Bridge
9 This view appears to be consistent with that of the Board of Inquiry for the MacKays to Peka Peka
Expressway Project. See paragraph 1,137 of Final Report and Decision of the Board of Inquiry; April, 2013. 10 Previously this document was called the Project Evaluation Manual (PEM). When the procedures were first
developed they were contained in a document referred to as Technical Recommendation No. 9 (TR9). 11 For example, public transport projects. 12 I.e. those seeking NZTA funding. 13 The EEM procedures and databases are not used to determine the overall size of the budget for investment
in road improvement projects – in other words the analysis is not used to determine the relative priorities of transport and non-transport related projects.
14 Following a directive from Treasury in 1972.
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Project and the Wellington Northern Corridor RoNS, a BCR greater than 1 when calculated from a national perspective will be even larger from a Wellington regional perspective. This is because most of the benefits will accrue to Wellington businesses and residents, whereas the costs of the Project will be funded from a national pool of resources.
6.6 The latest BCR based on conventional cost benefit analysis for the Basin Bridge Project is estimated at 1.2. Details about the calculation of this estimate are set out in Basin Reserve SAR Economics Technical Note; Opus International Consultants Ltd; March 2012.15 16
6.7 Whereas in the past the BCR and a qualitative17 assessment of any ‘intangibles’ were the only criteria on which New Zealand road improvement projects were assessed and ranked, this assessment of a project’s efficiency is now only one of the relevant assessment and ranking criteria, with other criteria relating to ‘strategic fit’ and ‘effectiveness’.
6.8 The NZTA has scored the whole of the Wellington Northern Corridor RoNS Project (of which the Basin Bridge Project is a part) ‘high’ (H) for strategic fit, ‘high’ (H) for effectiveness and ‘low’ (L) for efficiency; and this ‘HHL’ combination gives the Project a ‘priority 3’ ranking out of 11 possible priority for funding rankings (see evidence in chief of Mr Craig Nicholson to Board of Inquiry for Transmission Gully Notices of Requirements and Consents, November 2011).
6.9 These other criteria are an attempt to cover costs and benefits which have been excluded from the BCR calculation. Whereas from the perspective of economists, an efficiency measure for a project should be all encompassing (even if some costs and benefits of the project are not quantified in monetary terms) non-economists do not necessarily use the same framework and hence seek additional criteria to efficiency to describe other effects of a project.
6.10 Therefore, from the point of view of having regard to “… the efficient use and development of natural and physical resources”, as set out in section 7(b) of the RMA, it is necessary to look beyond just the BCR estimated for the Project. In this respect:
6.10.1 The latest BCR for the whole of the Wellington Northern Corridor RoNS investment package is 1.2.18 This means that the benefits of the whole of the Wellington Northern Corridor RoNS investment package are sufficient to exceed the 8% real (i.e. net of inflation) opportunity cost of funds set by the NZTA – that is, the benefits exceed the costs, including an 8% real cost of capital. Another way of expressing this is that the Wellington Northern Corridor RoNS
15 This report was peer reviewed by John Bolland of John Bolland Consulting Ltd and the economic evaluation
work covered by the report was signed off as being “fit for purpose” in a letter dated 18th June, 2012. 16 The economic analysis underpinning this report extrapolates benefits between 2021 and 2031. Whereas in
2021 it is assumed that the widening of Ruahine St and Wellington Road and the duplication of the Terrace and Mount Victoria Tunnels have not been completed, by 2031 these projects are assumed to be completed.
17 Or at least not quantified in money terms. 18 See evidence in chief of Mr Craig Nicholson to Board of Inquiry for Transmission Gully Notices of
Requirements and Consents, November 2011.
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investment package has an economic internal rate of return (EIRR) greater than the NZTA’s hurdle rate of 8%.
6.10.2 Considering only the BCR for the Basin Bridge Project in isolation is artificial in that the Project is an integral part of the Wellington Northern Corridor RoNS investment package. Without the Project, the benefits of the Wellington Northern Corridor RoNS investment package will not be fully realized.
6.10.3 The economic analysis underpinning the estimated BCR for the Basin Bridge Project of 1.2 assumes the standard urban arterial traffic mix, which has 22% work purpose trips. With Wellington Airport being a major trip destination (and origin) there are likely to be a greater number of work related trips (e.g. those of taxi drivers and business persons) than this. A sensitivity test assuming a 10% increase in the proportion of work trips lifted the BCR for the Project from 1.2 to 1.3.
6.10.4 There are benefits from the Project which have been excluded from the quantitative analysis estimating the BCR for the Project (and the Wellington Northern Corridor RoNS investment package). In particular no account has been taken in the BCR’s estimation of the residual value of the Project at the end of the analysis period. Whilst the Project does not have a residual value in the sense that it cannot be sold or redeployed in other uses, it has a residual value in that at the end of the analysis period it is likely to continue providing a stream of net traffic operating benefits out into the future before major reinvestment is required.
6.11 The BCR has been estimated using a national economic viewpoint. However adopting a narrower Wellington City or Wellington regional viewpoint, will lead to a much higher BCR since residents and businesses of Wellington will receive most of the Project’s benefits but pay only a proportionate share of its costs. In fact there is no certainty that, if the Project does not proceed, the funds earmarked for it will be available for road improvement (or other) projects in Wellington. The funds may instead be used for road improvement (or other) projects in Auckland or elsewhere in New Zealand. Therefore, from a Wellington City or Wellington regional perspective, the Project has a very high BCR since the benefits are significant but the opportunity cost of the funds for Wellington is very low.
6.12 The Project has construction funding approval from the Board of the NZTA. It will be constructed by the Alliance, who are already involved in constructing the National War memorial Park and associated undergrounding of Buckle Street, and also the Inner City Bypass improvements. If consent for the Basin Bridge Project is timely, the Alliance will have no “down time”, leading to additional efficiencies in Project construction.
6.13 Having regard to these various factors, the Project is consistent with enabling “people and communities to provide for their … economic ... well being”, and having regard to “the efficient use and development of natural and physical resources”. This is reflected in the NZTA ascribing ‘high’ ratings to the Project for strategic fit and effectiveness. The Project being an integral part of the RoNS investment package, which had a BCR greater than 1.0, and the RoNS
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investment package having high ratings for strategic fit and effectiveness were two significant reasons why the Boards of Inquiry into the the Transmission Gully Proposal and the MacKays to Peka Peka Expressway Project concluded that each of those projects promotes the efficient use of resources.19
7. WIDER ECONOMIC BENEFITS
7.1 Conventional cost benefit analysis of transport projects is now being extended to cover increases in productivity (or efficiency) at the regional and national levels that are in addition to the conventionally measured benefits (e.g. savings in vehicle operating costs, travel time and accidents). Conceptually the inclusion of a number of additional benefits can be justified. For example, there are so called ‘agglomeration’ benefits. These arise when the productivity and the supply of labour and other resources are enhanced when travel times between points within a district, city or region are reduced and this leads to an effective increase in the density or concentration of business activity. Another wider economic benefit may occur as a result of road improvement projects increasing the level of economic activity in an area and economies of scale leading to increased productivity and economic efficiency.
7.2 The NZTA’s EEM now includes procedures and data for estimating agglomeration economies. Conceptually the inclusion of wider economic benefits is appropriate but the quantification of such benefits in New Zealand (and probably overseas) is not as well developed as conventional cost benefit analysis. Therefore any estimates of wider economic benefits need to be treated with some caution.
7.3 Wider economic benefits have not been included in the estimation of the BCR for the Basin Bridge Project, but have been included in the BCR estimated for the total Northern Corridor RoNS investment package.
7.4 In addition, from a Wellington City perspective the Project will help facilitate20 more intensive residential and commercial development along the urban growth spine, which includes the Adelaide Road precinct. In encouraging more intensive development along the urban growth spine, the Wellington City Council seeks “a growth management strategy that directs growth to where the benefits are greatest, where adverse effects are minimised and delivers on quality”.21 The benefits of such an approach are both economic and non-economic. Among the economic benefits are compactness (i.e. agglomeration benefits and saved transport costs) and lower infrastructure costs as compared to new greenfields development on the outskirts of the City.
7.5 No account of any benefits of the Council’s growth spine development proposals has been included in the estimated BCR for the Project. Nor has
19 See paragraphs 245 and 246 of Final Report and decision of the Board of Inquiry into the Transmission Gully
Proposal, June, 2012; and paragraphs 1,137 and 1,139 of Final Report and Decision of Board of Inquiry for the MacKays to Peka Peka Expressway Project; April, 2013.
20 Whilst the Adelaide Road precinct is earmarked for more intensive development, a document on the Wellington Council’s website (Adelaide Road Overview) is clear that improvements to traffic flow on the adjacent road network is required for this to occur. The document states; “Although the Adelaide Road area has the highest public transport patronage in the city and large numbers of people walk or cycle through the area, it is a poor environment from a safety and ‘amenity’ perspective due to congestion, traffic access management, intersection control and vehicle speeds”.
21 Urban Development Strategy – Directing Growth and Delivering Quality; Wellington City Council; July 2006.
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any account been taken of any such intensification of development within the Adelaide Road precinct in the traffic analysis or BCR estimation. However to the extent the Project helps facilitate more intensive development along parts of the growth spine, there are additional economic benefits which have been excluded from the quantitative BCR analysis.
8. BUSINESS REDISTRIBUTION EFFECTS
8.1 Generally under the RMA, retail or business redistribution effects are not relevant insofar as they impact on individual competitors. Such impacts are only relevant under the RMA to the extent they are of such significance that they threaten the public amenity values (e.g. critical mass, sustainability, vibrancy and vitality, etc.) of city, town or suburban centres.22
8.2 The Project, whilst not an investment by a competitor in retail or other businesses within Wellington City, may have a negative impact on the economic wellbeing of some Wellington City businesses in the vicinity of the Basin Reserve which are dependent on the passing motorized trade along the existing road network alignment. Those businesses potentially affected are the small number of businesses around the southern (Rugby Street) and western (Sussex Street) ends of the Basin Reserve and perhaps businesses in Cambridge Terrace to the extent that the Project may reduce some of the traffic travelling down Cambridge Terrace.23 Also there may be some businesses negatively affected by the loss of 5 parking spaces in Pirie Street and the loss of 21 parking spaces in Vivian Street (between Tory Street and Cambridge Terrace) during the hours of operation of the new clearways (weekdays 7-9 a.m. and 4-6 p.m.), although there will remain on-street parking alternatives in Tory Street, Cambridge Terrace and Kent Terrace during these times.
8.3 However it is unlikely that these negative effects will be significant, having regard to the limited number of such businesses. Few, if any, of these businesses are likely to be significantly reliant on the passing motorised trade or on-street peak hour parking directly outside their businesses. In addition, although the Project will result in the realignment of the SH1 network around the Basin Reserve, it will not significantly “bypass” businesses located on existing routes.
8.4 From a broad Wellington City or Wellington regional viewpoint, the Project will not reduce the overall level of business activity – indeed the improvements in accessibility to, from and within the City and region brought about by the Project will in my opinion increase the overall level of business activity within the City and region as a consequence of increased competitiveness for local businesses and an increase in the City’s attractiveness to live or visit. Therefore any losses in trade for individual businesses will be more than offset by increases in trade for other businesses.
22 See Eldamos Investments Limited v Gisborne District Council (EnvC W047/2005, 22 May 2005) at paras
217-235; General Distributors Limited v Waipa District Council (HC Auckland CIV-2008-404-4857, 19 December 2008) at para 93; and Discount Brands Limited v Westfield (New Zealand) Limited [2005] 2 NZLR 597 at paras 8-17.
23 The traffic analysis shows that with the Project there is a small reduction in traffic travelling along Cambridge Terrace but a large increase in the traffic travelling along Kent Terrace (see Technical Report 4).
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8.5 For some businesses in the vicinity of the Basin Reserve, the Project by grade separating east-west and north-south traffic will provide improved trading conditions as a consequence of the reduction in traffic volumes on the route – e.g. from reduced traffic noise and air pollution, reduced severance, and an easier turning and parking environment. In particular there will be lower volumes of traffic on the southern side (Rugby Street) and western side (Sussex Street) of the Basin Reserve.
8.6 Business transactions involve transactions between suppliers and consumers. Where consumers change their destination purchasing patterns there are likely to be benefits to them as well as to the suppliers who gain trade. Such benefits should not be ignored by focussing only on suppliers who lose trade.
8.7 Lost sales revenue greatly overstates the “bottom line impact” on business suppliers. It is really only lost profits that impact on suppliers who lose business. The loss in profits is however likely to be considerably less than lost sales revenue. Over time businesses will react to their new business environment to minimise such lost profits by downsizing, changing their offering or by relocating.
8.8 Mitigation measures such as appropriate signage can be put in place to minimize negative impacts on the limited number of businesses along the existing road network that may be adversely affected by the reduction of passing motorized trade. Over time growth in business sales (as a result of population and household growth and increases in real per capita and per household expenditure) will help to offset any reductions in sales for some individual businesses as a consequence of the Project.
8.9 Therefore the business redistribution effects of the Project are not assessed to be of such significance that they will affect public amenity values in the vicinity of the Basin Reserve and the grade separation of east-west from north-south traffic is likely to have positive impacts for some businesses.
8.10 Finally, in relation to business redistribution effects the Project will improve accessibility to and from Hataitai, Kilbirnie and Newtown shopping centres as well as to the airport, hospital and schools, especially those adjacent to the Basin Reserve. The three shopping centres largely have local catchments and are not “destination” shopping centres. However, to the extent the Project increases the attractiveness of residing in these local catchments, the shopping centres may benefit from increased demand for goods and services. However, this will in turn involve the diversion of trade from elsewhere in the City.
8.11 Improving travel times to and from the airport will have a positive effect on air travel in and out of Wellington City, although it is difficult to predict whether the Project by itself would lead to greater volumes of passengers and freight volumes through the airport.
8.12 Improved access to and from Wellington hospital is beneficial to all residents and visitors to the City and the wider Wellington region, especially for those requiring emergency care hospital services. In this respect the benefits of “potential travel” are important – i.e. all residents and visitors benefit through the knowledge that an emergency trip to the hospital can be completed in less
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time with the Project, even though they may never make such trips. These “potential travel” benefits are not included in the BCR analysis.
8.13 The pupils, parents and staff attending the three secondary schools and one primary school adjacent to the Basin Reserve will be significant beneficiaries of the Project. However the Project is not expected to result in any significant “redistribution” of pupils attending schools within the City.
9. INCREASED ECONOMIC ACTIVITY DURING PROJECT CONSTRUCTION AND OPERATION
Project Construction
9.1 During the Project’s anticipated four year construction period (2014/15-17/18 inclusive) there will be increased economic activity for Wellington City and the wider Wellington region, as a consequence of the additional expenditure, employment and incomes directly generated by the Project’s construction and the indirect (or multiplier) expenditure, employment and incomes generated as a consequence of impacts on suppliers of goods and services to the Project and those employed on it.
9.2 The NZTA takes no account of such impacts in its estimation of a project’s BCR because in taking a national viewpoint the level of economic activity (i.e. expenditure, employment and incomes) are likely to be the same with or without a project – if funds are not utilized on one project they are likely to be utilized on an alternative NZTA project, even if in a different region in New Zealand. However taking a Wellington City or Wellington regional perspective there are likely to be increased levels of economic activity as a consequence of the Project, since without it, the funds earmarked for it are likely to be used elsewhere in New Zealand and not on an alternative road construction project in Wellington City or the Wellington region. Local firms will be engaged to provide goods and services to the Project, local residents will be engaged to work on the Project and local firms will in turn provide goods and services to these employees.
9.3 Economic impacts such as increases in business turnover, employment and incomes are not in themselves measures of improvements in economic welfare or economic wellbeing. However, there are economic welfare enhancing benefits associated with increased levels of economic activity. These relate to one or more of the following:
9.3.1 Increased economies of scale: Businesses and public sector agencies are able to provide increased amounts of outputs with lower unit costs, hence increasing profitability or lowering prices.
9.3.2 Increased competition: Increases in the demand for goods and services allows a greater number of providers of goods and services to enter markets and there are efficiency benefits from increased levels of competition;
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9.3.3 Reduced unemployment and under-employment24 of resources: To the extent resources (including labour) would be otherwise unemployed or underemployed, increases in economic activity can bring efficiency benefits when there is a reduction in unemployment and underemployment. The extent of such gains is of course a function of the extent of underutilized resources within the local economy at the time, and the match of resource requirements of a project and those resources unemployed or underemployed within the local economy.
9.3.4 Increased quality of central government provided services: Sometimes the quality of services provided by central government (such as education and health care) are a function of population levels and the quality of such services in a community can be increased if increased economic activity maintains or enhances population levels.
9.4 It is reasonable to assume that any increases in economic activity as a consequence of increased road construction activity in Wellington City and the Wellington region from the Project will give rise to one or more of these four welfare enhancing economic benefits for the City and region.
9.5 Some individual businesses may be negatively affected during the construction phase of the Project. For example Regional Wines and Spirits in Ellice Street, iKids on Kent Terrace and the Basin Reserve Trust (in relation to the ability to host cricket matches during the Project’s construction) are in discussions with NZTA about potential construction effects. The net effects for these individual parties will depend upon the outcomes of these discussions. However from a wider City perspective, any negative net economic effects will be limited to the extent activity is transferred to other providers or venues within the City.
Project Operation
9.1 The Project will lead to reductions in vehicle operating costs, travel times and accident costs and improvements in trip time reliability for through traffic and local traffic – i.e. local residents and businesses. These traffic-related benefits of the Project, which relate to the movement of both people and freight, are detailed in Technical Report 4. It is interesting to note that whereas some major infrastructure projects give rise to national and regional economic benefits, but localised (or “community”) costs, the Project is anticipated to bring significant local economic benefits in addition to national and regional economic benefits. Because of Wellington City’s location at the southern end of the North Island, all of the traffic benefitting from the Project will have a trip destination and/or a trip origin within Wellington City.25
24 Underemployment differs from unemployment in that resources are employed but not at their maximum
worth; e.g. in the case of labour, it can be employed at a higher skill and/or productivity level, reflected in higher wage rates.
25 Even traffic from outside Wellington City, travelling to or from Wellington Airport will provide benefits to Wellington International Airport Limited and possibly other local businesses located within the airport terminal.
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9.2 For businesses, savings in vehicle operating costs, travel times and accident costs, and improvements in trip time reliability result in increased productivity and improvements in business competitiveness. For residents the traffic related benefits of the Project will provide expenditure savings and the freeing up of time for other productive or leisure activities.
9.3 Improving the accessibility within Wellington City and the region will increase the attractiveness of the City and region for business and residential development. Therefore the Project26 is likely to result in increased levels of economic activity within the City and region from greater employment and population growth. As discussed previously in relation to the Project’s construction, increases in levels of economic activity are not in themselves measures of improvements in economic welfare or economic wellbeing. However, there are economic welfare enhancing benefits associated with increased levels of economic activity to the extent that they lead to increased economies of scale, increased competition, reductions in unemployment and under-employment of resources and improvements to services provided by central government.
9.4 These types of economic benefits arise at the local level. However at the wider regional or national level, it is most likely such benefits will only be transfers – i.e. the faster growth in business and residential development within Wellington City and the Wellington region will be at the expense of slower growth elsewhere within the region or country. This is with the exception of so-called “agglomeration economies” which refer to the beneficial effects of road improvement projects improving the accessibility within a district, region or country and thereby effectively increasing the density and consequently the economic efficiency of urban centres. In the cost benefit analysis undertaken in accordance with NZTA’s EEM procedures, agglomeration economies have only been estimated for the calculation of the BCR for the whole Wellington Northern Corridor RoNS investment package and not for the individual sub-component projects.
10. PROPERTY VALUE EFFECTS
10.1 There will be both positive and negative property value effects for a number of properties within the vicinity of the Basin Reserve. Some properties on the northern and north-eastern edge of the Basin Reserve will be adversely affected by the Project as a consequence of visual, noise, severance and other so-called “intangible” effects. Other properties (on the southern, south-eastern and western edges of the Basin Reserve) will benefit from less traffic, narrower roads and less severance. Additional open space areas will also add to amenity values.
10.2 In economics, intangible effects are those which cannot easily be measured in monetary terms. While it may sometimes be possible to estimate property value changes as a consequence of a project, such property value changes are a reflection of, and not in addition to, the intangible effects. The change in property value effect does not materialize unless and until an owner sells the property. At this point there is a wealth loss or gain to the seller, but no
26 Especially in conjunction with the other improvements proposed as part of the Wellington Northern Corridor
RoNS investment package.
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ongoing environmental effects to be borne by the seller. The purchaser of the property gains or loses by having to pay a lesser or higher price for the property but experiences the costs or benefits of the ongoing intangible effects. From the perspective of Wellington City or the Wellington region as a whole, these are the costs or benefits of the intangible effects as reflected in the change in property values but not in addition to the change in property values.
10.3 For other property owners, the increase in attractiveness of the City for business and residential development is likely to mean increases in property values. However this is likely to be largely a transfer effect from a broader regional or national perspective. To the extent that the Project increases the demand (and price) of properties for development within the City, there will be lesser demand (and price) for properties elsewhere in the region.
10.4 Also, while the accessibility benefits for the occupiers of existing commercial and residential properties will exert upward pressure on these properties values, these are a reflection of, not in addition to, the traffic related benefits already discussed above in this report. In the cost benefit analysis undertaken in accordance with the NZTA’s EEM procedures the traffic related benefits are estimated in terms of savings in vehicle operating, travel time and accident costs, and improvements in trip time reliability. Property value gains are excluded from the cost benefit analysis to ensure no double counting of benefits occur.
11. CONCLUSIONS
11.1 The Basin Bridge Project will enable Wellington City residents and businesses “to provide for their … economic … well being” through:
11.1.1 increased economic activity during the Project’s construction and operation;
11.1.2 reductions in vehicle operating costs, travel time costs and accident costs, and improvements in trip time reliability for through traffic and local traffic;
11.1.3 enabling improved public transport services; and
11.1.4 facilitating increased intensity of residential and commercial development along parts of the Council’s growth spine.
11.2 The Project is consistent with “the efficient use and development of natural and physical resources”.
11.4 The Project will not give rise to any significant economic externality costs.
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Appendix 17.A Detailed Project Description
The package of transportation improvements proposed by the Project are summarised below and followed by a brief description of the works:
SH1 westbound (from Mount Victoria Tunnel to Buckle Street)
• The Bridge - new direct link from Paterson Street to Buckle Street via a bridge;
• Buckle Street three laning - provision of third lane along Buckle Street between Sussex Street (including minor modifications to Sussex Street) and Taranaki Street to improve capacity and accommodate the two lanes from the bridge; and
• Taranaki Street improvements – modifications to the layout of Taranaki Street and Buckle Street intersection to accommodate the three laning of Buckle Street and to increase capacity.
SH1 eastbound (from Vivian Street – Kent Terrace - Mount Victoria Tunnel)
• SH1 Eastbound re-alignment - realignment of SH1 eastbound between Hania Street and Brougham Street; and
• Vivian Street and Pirie Street Improvements – as part of the modifications to the intersection of Pirie Street and Kent / Cambridge Terraces and Vivian Street, clearways on Vivian Street are proposed. The combination of improvements increases the capacity of the intersection for all traffic movements including public transport.
Improvements to roads around the Basin Reserve
• Paterson Street / Dufferin Street intersection – layout modifications to change priority at the signals including provision of a significant increase in priority to Dufferin Street (south bound traffic from Kent Terrace/ Ellice Street);
• Adelaide Road / Rugby Street intersection – reducing through lanes along Rugby Street from 3 lanes to 1 and allowing Adelaide Road traffic and Rugby Street traffic to flow at the same time. Pedestrian and cycling crossings will be via on-demand signals. Two lanes for access into Adelaide Road would remain with one operating as a dedicated bus lane;
• Ellice Street link – new road link from Ellice Street to Dufferin Street/Paterson Street intersection (a similar vehicular movement can currently be made between Ellice Street and Dufferin Street). A new shared pathway for pedestrians and cyclists would be provided adjacent to this link to facilitate movements between the Mount Victoria suburb, the schools on Dufferin Street, and further south toward Adelaide Road;
• Dufferin Street improvements – works to modify the layout of the road space and bus drop off zones on Dufferin Street and Rugby Street on the south east corner of the Basin Reserve and to improve vehicular access to Government House; and
• Basin Reserve Gateway – treatment to Buckle Street where it meets Kent/Cambridge Terraces, and retains an entry point to the re-aligned SH1 eastbound.
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Walking, Cycling, Public Transport (throughout the Project Area)
• Walking and cycling path on bridge – new walking and cycling path on the bridge between Paterson Street and Buckle Street / NWM Park;
• Existing pedestrian and cycle routes – existing at-grade pathways are retained or enhanced and additional and alternative routes are provided. Additional and improved pedestrian and cycling access would be provided in the landscaped area on the corner of Cambridge Terrace and Buckle Street and between Brougham Street and Kent Terrace. These routes link to the proposed pedestrian and cyclist facilities proposed through NWM Park;
• Public Transport - new dedicated bus lanes are proposed on Ellice Street, Dufferin Street and Buckle Street, and the southbound bus stop is proposed to be relocated from Adelaide Road onto Rugby Street; and
• Public Transport - existing priority for buses from Kent Terrace onto Ellice Street is retained.
For further detail on the proposed transport improvements refer to Volume 3: Technical Report 4: Assessment of Traffic and Transportation Effects of these documents. Details of the road design layouts are shown in Volume 5: Plan and Drawing Set.
URBAN DESIGN AND LANDSCAPE
Proposed urban design and landscape treatments to areas outside of the road carriageway form part of the Project works. The development of the proposed Project design has been iterative, responsive and collaborative. As such, it has been developed through an Urban Landscape and Design Framework (refer to Volume 3: Technical Report 2) to address the specific urban design principles for the Project. The Project proposes treatments to areas adjacent to the road network that would assist with the integration of the proposed bridge into the surrounding urban context.
Six zones and elements (Zones) for the Project area have been identified within which character and zone specific principles for those areas have been developed to define the design intent and to provide a framework for post RMA consenting detailed design development.
These are briefly described for the urban and landscape zones below:
• Zone 1 Cambridge/Buckle Bridge Interface Zone - proposed landscape treatments to land between Cambridge Terrace and the NWM Park, which includes rain gardens and wetland plantings for stormwater treatment. This landscape area has been designed as a continuation of the NWM Park. The terracing in the NWM Park starts from Kent and Cambridge Terraces and are reflective of the cultural heritage of the area, as cultivation terraces. Wetland planting reflects the former Waitangi Lagoon which is now the Basin. The landscaping also provides an interface with the curtilage of the newly relocated Home of Compassion Crèche (former) .
• Zone 2 Kent/Cambridge Basin Gateway - proposed landscaping between Kent/Cambridge Terrace responds to tangata whenua values in relation to the proposed historical wetland ecology and provides a safe and enlarged public access and gathering area relative to the Basin Reserve entrance. The proposed landscape
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aims to facilitate gathering and includes reconfigured pedestrian crossings, bus stops and Basin Reserve entrance.
• Element 2.1 Entrance to the Basin Reserve – proposes a combination of planting (pohutukawa trees) and a new Northern Gateway Building on the northern boundary within the Basin Reserve. The combination of new Northern Gateway Building and pohutukawa trees screen the bridge from general views from within the Basin Reserve. The new Northern Gateway Building is designed to specifically remove potential views of traffic on the bridge from the views of batsmen (facing bowlers from the north). The new Northern Gateway Building would provide space for player facilities and includes a wider entrance for visitors to the Basin Reserve that is aligned with the new entrance plaza located between Kent and Cambridge Terrace.
The new structure will occupy the space between the RA Vance Stand and the existing toilet block at the edge of the northern embankment. It will be approximately 65m long and up to 11.2m high and includes a screen above the existing player’s pavilion between the new building and the RA Vance Stand. This option is preferred by the Basin Reserve Trust.
Alternative mitigation proposals entail a 45m long structure and a 55m long structure and consequent increases in proposed tree planting have also been considered.
• Zone 3 Kent/Ellice Street corner zone – proposes a new building under the proposed bridge at the corner of Kent Terrace and Ellice Street which would be made available for commercial use. It is intended to re-establish the historical built / street edge in this location and the building helps incorporate the bridge into the built urban environment. A green screen is proposed to be located above the new building to provide a level of screening for the adjacent apartment building and assist to visually integrate the bridge with the buildings at this corner.
• Zone 4 Paterson/ Ellice/Dufferin Interface zone – proposes to continue ground landscape linking from across Kent/Cambridge Terraces and additional tree planting around the Basin Reserve’s outer square.
The Project proposes works within St Joseph’s Church property using land that is currently used for car parking. Thus, the Project proposes to remove the existing building at 28 Ellice Street and to adjust the existing car park and provide landscape improvements for the Church within the remaining space. All of these works are located on land owned by the Church.
• Zone 5 Dufferin/Rugby Streets, Schools/Church/Government House Interface zone which serves as a vehicular and pedestrian access area serving key adjacent land uses of the schools and Government House. Proposed works include the re-allocation of space in the roading corridor, layout modification and urban design and landscape treatments.
• Zone 6 The Bridge Element – the horizontal alignment of the Bridge has retained a close reference to the historic street pattern (the Te Aro Grid) to strengthen and define the Basin square. The vertical alignment has utilised underlying landform to achieve grade separation between north-south and east west routes. The width of the bridge has been kept to a minimum that meets safe traffic design standards for a 50km/h road. Abutments are integrated and grounded in the form and material of the landscaping. Lighting on the bridge seeks to minimise glare and spill onto surrounding areas and integrates with the bridge form and with the adjacent NWM Park. Architectural lighting is provided underneath the bridge and across the
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landscape, highlighting forms, surfaces and textures of the superstructure, under croft, piers, abutments and landscape. The combination of treatments and design promote the perception of the bridge being an elevated street rather than motorway flyover.
The Project will result in a number of transport benefits for the State highway network and the local road network (including public transport and walking and cycling) as well as new buildings, structures and landscape treatments for the Basin Reserve area.
Construction of these transportation improvements is currently scheduled to start in 2014/15.
