The Invercargill City Council has put its hand up for $83 million in government support for the inner-city redevelopment in response to the government’s call for “shovel-ready” projects it can invest in to reboot the economy.

The inner-city redevelopment is the highest priority of five ‘shovel-ready’ projects being pitched by the ICC in a wishlist that totals $33 million in grants and just over $50 million as a commercial loan.

On April 1, Infrastructure Minister Shane Jones asked the public and private sector for 'shovel ready' infrastructure project applications. These projects should be ready to start construction within six months, or as soon as the construction industry returns to normal, to stimulate the economy and reduce the economic impact of the COVID-19 pandemic.

The Infrastructure Industry Reference Group will then put forward private and public sector projects for consideration. These new projects will be in addition to the Government’s $12 billion New Zealand Upgrade Programme and existing Provincial Growth Fund infrastructure investments.

ICC staff were asked to prioritise eligible projects, which were then endorsed at a Committee of Council meeting this week.

For its top priority shovel-ready project, the ICC is seeking $83 million for the transformational redevelopment of the Invercargill City Centre, which is expected to cost $242.6 million. This comprises a $33 million in grant money and just over $50 million as a commercial loan from Crown Infrastructure Partners. 

Council Executive Officer Andrew Cameron said this would effectively replace a bank loan in the short term. 

"There might be reasons why the market is failing, which means you can't draw down that bank loan for some reason, so it just removes the risk," he said.  

The ICC's second priority are the Invercargill Flood Protection and Stopbank Improvements. This programme is aimed at managing the effects of climate change and protecting key assets, including the airport and the Otatara suburb. 

Engineering Services Group Manage Jeremy Rees said this programme included projects from both ICC and Environment Southland, such as the Waihopai and Otepuni stop banks, and was expected to cost $22.7 million, with the ICC contributing $15.5 million and ES contributing $7.2 million. 

ICC was initially seeking $8.8 million in grant money, but this was later revised to $11.35 million during Monday’s Committee of Council meeting, to match Environment Southland's request to receive 50% funding for its share of $7.2 million. 

$4.15 million is being requested for phase one of the Bluff Masterplan, which is expected to cost $11.7 million. This aims at making improvements to tourism and community facilities for the strategic redevelopment of Bluff, and includes key projects such as the Invercargill to Bluff cycleway and the Bluff boat ramp, as well as several other minor projects that already exist as part of the Bluff Masterplan. Invercargill City Council interim Parks Manager Michele Frey said the council had already secured just over $4 million for the project.

Next on the list is the Security of Invercargill and Bluff Water Supply project.

Water Manager Alister Murray said a grant of $3.75 million was being sought towards the Branxholme pipeline renewal project, which is part of the programme to secure the Invercargill and Bluff water supply and guarantee safe and reliable drinking water. This project is expected to cost $15.8 million. 

Finally, council building assets manager Paul Horner said $5 million was being requested as a grant for the Invercargill Civic Building Renewal Programme. This project is expected to cost $15.6 million.

Cr Toni Biddle said the projects identified by the council would hopefully secure "a lot more jobs for our people in our community that are facing some pretty tough times".

The Infrastructure Reference Group, supported by the Crown Infrastructure Programme, is now reviewing all submitted 'shovel ready' projects to determine which are suitable for inclusion in a report to be considered by the Government.

It is not guaranteed that any projects provided to the Reference Group will be accelerated or receive support.