Fletcher gets nod as preferred partner in Chch development   2 Jul 2015

Fletcher gets nod as preferred partner in Chch development as govt eyes next stage of rebuild

By Paul McBeth

July 2 (BusinessDesk) - Fletcher Residential, a unit of the country's biggest construction company, has been named the preferred developer for an $800 million project in Christchurch's inner city as part of the government's plans for the next stage of the city's rebuild.

The Fletcher Building unit won the government tender for the East and North Frame residential precinct, which aims to build about 940 townhouses, Prime Minister John Key said in a speech to the Canterbury Employers' Chamber of Commerce. The government will sell seven hectares of land, which Fletcher will buy progressively as the units are built and sold, with the project spread over eight or nine years.

"Fletchers will be responsible for designing, building and selling the completed development, subject to minimum requirements agreed with the government," Key said. “When finished, the new precinct is expected to increase the inner city population by around 45 percent."

The contract is one of several measures Key announced as the government enters a new stage in the Christchurch rebuild.

The government will introduce legislation this year to replace the Canterbury Earthquake Recovery Act, with the most directive powers granted to Earthquake Minister Gerry Brownlee likely to expire or be amended to "provide explicit roles for councils, and in certain cases, Ngai Tahu," Key said.

The new legislation will apply to a smaller area with updated provisions and expire in five years.

The government has also moved to wind up the Canterbury Earthquake Recovery Authority, which was headed by Roger Sutton until his sudden departure last year, with functions transferred to other agencies including the Department of Prime Minister and Cabinet, the Ministry of Business, Innovation and Employment, the Ministry of Health and Land Information New Zealand.

Key said a new entity, called Regenerate Christchurch, will also be established to essentially operate as an urban development authority, to help ensure the city's anchor projects and precincts and completed in a timely and effective manner.

"Over the next few years, responsibility for regenerating the central city will transfer progressively to the city council," Key said.

The Canterbury Earthquake Recovery Authority also released the draft transition recovery plan for greater Christchurch, and is calling for submissions until July 30.

(BusinessDesk)

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