In what has been a long time coming - while projected costs have risen - Central Otago District Council (CODC) gave approval yesterday (Wednesday July 19) for the demolition of the Cromwell Memorial Hall, the next step necessary in the building of a modern multi-use replacement.

Council’s 2021/31 long-term plan allocated $31.5M for the Cromwell Memorial Hall project and the Cromwell Community Board was told at its May 8 meeting that the developed design estimate had risen to $42.849M. 

The board endorsed the developed design and the start of a detailed design phase, subject to additional reporting about how the centre would operate and any rating implications.

“It’s exciting that we’re moving cautiously forward,” board chairwoman Anna Harrison said at the time. “After all, at nearly $43M, this is by far and away the biggest proposed spend that the district has ever seen.”

The board’s decision came back to the CODC yesterday as the original building is a council-owned property so its agreement was required before any demolition.

Councillor Stu Duncan said the shortfall was “a lot of money” and he was concerned the cost would continue to creep upward.

“It always alarms me when I see budget blowouts and we are looking at $11.3M,” he said. 

“Our ratepayers will pay for this somewhere down the line.”

CODC property and facilities manager Garreth Robinson said some mitigating factors could be put in place to ensure the budget did not blow out further.

“The more comprehensively we do the design phase, the more guarantee we can have on the cost,” he said.

Demolition of the hall is necessary for a comprehensive design, as it will allow foundation and geotech assessments to take place.

Mayor Tim Cadogan pointed out that the Cromwell Community Board had been delegated the power to decide what was done with its finances. 

The board proposed funding the shortfall from $5M expected from external funders to be confirmed in November 2023 and the remaining $6.349M proposed from the sales of land from the Cemetery Road industrial development.

“Cromwell has the money,” Tim said. “We chose to allow Cromwell to have this money because it came from Cromwell.”

The then-Cromwell Borough Council had made smart decisions when they had the opportunity, he added.

Cr Tracy Paterson asked about the potential external funders.

“In the event that doesn’t come to fruition and there is a lesser amount, is there enough in the land sales additional to cover that shortfall?”

Cr Cheryl Laws, who also sits on the Cromwell board, said there was still a long way to go in the process.

“That is not to say there cannot be pare-backs if the budget continues to blow-out,” she said.

Cr Martin McPherson reminded his colleagues about the council’s delegations to the community board, and said they were only being asked whether they recommended the demolition of the council-owned building.

That being the case, the council voted unanimously to receive the report and accept its level of significance; approve the demolition of the existing hall building and appropriate salvaging of materials; and note that an upcoming district review of museum funding includes the Cromwell Memorial Hall project.