Marine industry precinct to provide significant economic benefits
01 September 2011
Media Release
The unique new Marine Industry Precinct (MIP) at Hobsonville Point is one-step closer following Auckland Council's sign off on an investment proposal.
The Hobsonville Marine Industry Development, Yard 37, is a 20-hectare space earmarked for super yacht and boat building with the potential to create 2000 jobs and a major boost to the Auckland region's economy.
Yard 37 - called that because it is at 37 degrees latitude south on Hobsonville Peninsula - is an integral part of one of the Council's five key strategic transformation projects - the $300 million development of Auckland's north west region.
The proposed site has a combination of flat land and deep-water access, the only one of its kind in Auckland, and was bought by the former Waitakere City Council in 2005 when the government announced the pending closure of the Hobsonville Air Base.
The investment proposal approved by the Council's Strategy and Finance Committee this morning puts the cost of the project at $40 million with revenue of $61 million. These figures do not include costs to date of $27 million for the land and some project costs. The cost to Council is now $6.6 million.
The proposal identified significant cost savings in the project's proposed infrastructure, namely a simpler and less expensive boat launching and retrieval facility.
Cost Benefit Analysis shows the Yard 37 project will have a return for the regional economy on each dollar invested of $3.22. In general, a minimum condition for consideration of public funding is that the ratio is above $1.00 signifying the economy will be better off from the investment than without it.
"This project is going to cost the Council however in exchange Auckland, and indeed New Zealand, is getting some serious and strategic economic benefits," says Strategy and Finance Committee Chair Penny Webster.
"Yard 37 will be a high end cluster development, a catalyst for industry growth in a globally competitive sector and it will provide employment opportunities in an expanding, export orientated market. It also links to our vision for Auckland, specifically the development of a productive, high-value economy."
Auckland Council Properties Limited Chief Executive David Rankin says Council's approval is a project milestone and that he is pleased the proposal, approved by his board in July, achieved significant cost savings and created a workable business case for a successful, world-class facility.
The next step in the project is to secure firm commitments from key marine industry companies to Yard 37 and gain final resource consent so work can start as soon as possible.