The Christchurch City Council’s decision to pause its project to restore the Christchurch Town Hall until its financial position is clearer is plainly a wise one. The council had intended to begin seeking expressions of interest from companies who wanted to be involved in the project in May. But that has not gone ahead while the council awaits the outcome of negotiations with is insurers. That makes sense. There would be little point in committing a lot of time and money to the project if in the end there would be no rational way for the council to complete it.
The Council is already struggling with debt.
The Town Hall was insured for $69.1 million, but not all of that is necessarily recoverable. In any case, repairs have been estimated to cost $127.5m, more than it cost, in inflation-adjusted terms, to build.
So the net cost to ratepayers is at least $58 million.But it sounds like they won’t get the full insurance and we all know government construction projects tend to cost more than originally estimated. I would not be surprised if ratepayers end up having to pay over $100 million. That is almost $800 per household. If you asked households if they would rather have the $800 themselves or spend it on the Town Hall, I know what the answer would be.