AGENDA

Economic Development Committee

 


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adrian Broad (Chairperson)

Leonie Hapeta (Deputy Chairperson)

Grant Smith (The Mayor)

Brent Barrett

Lew Findlay QSM

Rachel Bowen

Duncan McCann

Gabrielle Bundy-Cooke

Aleisha Rutherford

Vaughan Dennison

Tangi Utikere

 

 

 

 

 

 

 


 

 

 


PALMERSTON NORTH CITY COUNCIL

 

 

 

 

Economic Development Committee MEETING

 

8 April 2019

 

 

 

Order of Business

 

NOTE: The Economic Development Committee meeting coincides with the ordinary meeting of the Sport and Recreation Committee meeting.   The Committees will conduct business in the following order:

 

-           Economic Development Committee

-           Sport and Recreation Committee

1.         Apologies

2.         Notification of Additional Items

Pursuant to Sections 46A(7) and 46A(7A) of the Local Government Official Information and Meetings Act 1987, to receive the Chairperson’s explanation that specified item(s), which do not appear on the Agenda of this meeting and/or the meeting to be held with the public excluded, will be discussed.

Any additions in accordance with Section 46A(7) must be approved by resolution with an explanation as to why they cannot be delayed until a future meeting.

Any additions in accordance with Section 46A(7A) may be received or referred to a subsequent meeting for further discussion.  No resolution, decision or recommendation can be made in respect of a minor item.

 

 

3.         Declarations of Interest (if any)

Members are reminded of their duty to give a general notice of any interest of items to be considered on this agenda and the need to declare these interests.

 

4.         Public Comment

To receive comments from members of the public on matters specified on this Agenda or, if time permits, on other Committee matters.

(NOTE:     If the Committee wishes to consider or discuss any issue raised that is not specified on the Agenda, other than to receive the comment made or refer it to the Chief Executive, then a resolution will need to be made in accordance with clause 2 above.)

5.         Presentation - The Factory                                                                                  Page 7

6.         Presentation - RACE Group                                                                                  Page 9

7.         Confirmation of Minutes                                                                                   Page 11

“That the minutes of the Economic Development Committee meeting of 11 February 2019 Part I Public be confirmed as a true and correct record.”  

8.         Summary report on the December 2018 Manawatū Quarterly Economic Monitor, Major Developments, and the Quarterly Retail Report for January 2019                 Page 15

Memorandum, dated 21 March 2019 presented by the Economic Policy Advisor, Peter Crawford and the Chief Executive, CEDA, Linda Stewart.

9.         Committee Work Schedule                                                                                Page 53

 

 

  

 10.      Exclusion of Public

 

 

To be moved:

“That the public be excluded from the following parts of the proceedings of this meeting listed in the table below.

The general subject of each matter to be considered while the public is excluded, the reason for passing this resolution in relation to each matter, and the specific grounds under Section 48(1) of the Local Government Official Information and Meetings Act 1987 for the passing of this resolution are as follows:

 

General subject of each matter to be considered

Reason for passing this resolution in relation to each matter

Ground(s) under Section 48(1) for passing this resolution

 

 

 

 

 

This resolution is made in reliance on Section 48(1)(a) of the Local Government Official Information and Meetings Act 1987 and the particular interest or interests protected by Section 6 or Section 7 of that Act which would be prejudiced by the holding of the whole or the relevant part of the proceedings of the meeting in public as stated in the above table.

Also that the persons listed below be permitted to remain after the public has been excluded for the reasons stated.

Chief Executive (Heather Shotter), Chief Financial Officer (Grant Elliott), Chief Infrastructure Officer (Tom Williams), General Manager – Strategy and Planning (Sheryl Bryant), General Manager - Community (Debbie Duncan), Chief Customer and Operating Officer (Chris Dyhrberg), General Manager - Marketing and Communications (Sacha Haskell), Sandra King (Executive Officer) because of their knowledge and ability to provide the meeting with advice on matters both from an organisation-wide context (being members of the Council’s Executive Leadership Team) and also from their specific role within the Council.

Legal Counsel (John Annabell), because of his knowledge and ability to provide the meeting with legal and procedural advice.

Committee Administrators (Penny Odell, Rachel Corser and Courtney Kibby), because of their knowledge and ability to provide the meeting with procedural advice and record the proceedings of the meeting.

[Add Council Officers], because of their knowledge and ability to assist the meeting in speaking to their report and answering questions, noting that such officer will be present at the meeting only for the item that relate to their respective report.

[Add Third Parties], because of their knowledge and ability to assist the meeting in speaking to their report/s [or other matters as specified] and answering questions, noting that such person/s will be present at the meeting only for the items that relate to their respective report/s [or matters as specified].

 

 

  


 

 

 


PALMERSTON NORTH CITY COUNCIL

 

Presentation

TO:                                Economic Development Committee

MEETING DATE:           8 April 2019

TITLE:                            Presentation - The Factory

FROM:                           Dave Craig – Community Programmes Manager

 

 

RECOMMENDATION(S) TO Economic Development Committee

1.   That the Economic Development Committee receive the presentation for information.

 

 

Summary

Dave Craig, Community programmes Manager, The Factory will provide an overview of the Innovate 2018 Awards and speak about the contribution they make annually to the local economy.

 

 

Attachments

Nil   



 

 

 


PALMERSTON NORTH CITY COUNCIL

 

Presentation

TO:                                Economic Development Committee

MEETING DATE:           8 April 2019

TITLE:                            Presentation - RACE Group

FROM:                           Al Robertson – CEO RACE Group

 

 

RECOMMENDATION(S) TO Economic Development Committee

1.   That the Economic Development Committee receive the presentation for information.

 

 

Summary

Al Robertson, CEO, RACE Group will speak on the success of this year’s Festival of Racing and other initiatives at the Awapuni Racing Centre.

 

 

Attachments

Nil     


 

Palmerston North City Council

 

Minutes of the Economic Development Committee Meeting Part I Public, held in the Council Chamber, First Floor, Civic Administration Building, 32 The Square, Palmerston North on 11 February 2019, commencing at 9.04am

Members

Present:

Councillor Adrian Broad (in the Chair), The Mayor (Grant Smith) and Councillors Brent Barrett, Rachel Bowen, Gabrielle Bundy-Cooke, Vaughan Dennison, Lew Findlay QSM, Leonie Hapeta, Duncan McCann, Aleisha Rutherford and Tangi Utikere.

Non Members:

Councillors Susan Baty, Jim Jefferies, Lorna Johnson, Karen Naylor and Bruno Petrenas.

 

1-19

Presentation - Enable New Zealand

Presentation from Mr Scott Ambridge, General Manager Enable New Zealand and Living Centre.

 

Mr Ambridge talked about the benefits his organisations had brought to the Palmerston North economy and wider region with over 40 years’ of providing disability support services to over 70,000 people per year.

Enable New Zealand had enjoyed 10% year-on-year growth over the last three years and created 17 new jobs in the past two years.

The Easie Living Centre had launched in 2016 and was the first in New Zealand of its kind. The centre had over 11,000 visitors in the past year. Combining a demonstration centre, retail shop and smart home in one made it an informative one stop shop for people with a disability or the aging community who want to stay in their homes.

Funding that had been received from Central Government was effectively money going back into the economy and providing jobs which had also encompassed the disabled.

who want to stay in their homes.

The potential for collaboration between developers and investors around accessible housing and partnering with others had been seen as a significant bonus for the organisation and a regional initiative to implement the success of Mana Whaikaha, which included approximately $6 million per annum of additional funding from Central Government.

 

 

Moved Leonie Hapeta, seconded Vaughan Dennison.

The COMMITTEE RESOLVED

1.   That the Economic Development Committee receive the presentation for information.

 

Clause 1-19 above was carried 16 votes to 0, the voting being as follows:

For:

The Mayor (Grant Smith) and Councillors Brent Barrett, Susan Baty, Rachel Bowen, Adrian Broad, Gabrielle Bundy-Cooke, Vaughan Dennison, Lew Findlay QSM, Leonie Hapeta, Jim Jefferies, Lorna Johnson, Duncan McCann, Karen Naylor, Bruno Petrenas, Aleisha Rutherford and Tangi Utikere.

 

2-19

Presentation - International Pacific United

Presentation from Hiroyasu Tsumakura, Assistant to the International Pacific United board.

 

Mr Tsumakura spoke about the various ways that International Pacific United (IPU) is contributing to the economic benefits for Palmerston North and the cultural diversity and support to tourism this brought to the region.

IPU had a big contribution to the region’s economic success. Over the last 20 years it had brought revenue of $214m into the city. Most students lived on campus and found jobs in the city, included internships with local businesses, providers and charities. Many that had graduated decided to make Palmerston North their home. IPU’s presence in the region had attracted tourists, friends and families of students and also a range of events that had brought visitors to Palmerston North.

 

 

Moved Aleisha Rutherford, seconded Vaughan Dennison.

The COMMITTEE RESOLVED

1.   That the Economic Development Committee receive the presentation for information.

 

Clause 2-19 above was carried 16 votes to 0, the voting being as follows:

For:

The Mayor (Grant Smith) and Councillors Brent Barrett, Susan Baty, Rachel Bowen, Adrian Broad, Gabrielle Bundy-Cooke, Vaughan Dennison, Lew Findlay QSM, Leonie Hapeta, Jim Jefferies, Lorna Johnson, Duncan McCann, Karen Naylor, Bruno Petrenas, Aleisha Rutherford and Tangi Utikere.

 

3-19

Confirmation of Minutes

 

Moved Adrian Broad, seconded Lew Findlay QSM.

The COMMITTEE RESOLVED

1.   That the minutes of the Economic Development Committee meeting of 10 December 2018 Part I Public be confirmed as a true and correct record.

 

Clause 3-19 above was carried 15 votes to 0, with 1 abstention, the voting being as follows:

For:

The Mayor (Grant Smith) and Councillors Brent Barrett, Susan Baty, Rachel Bowen, Adrian Broad, Gabrielle Bundy-Cooke, Vaughan Dennison, Lew Findlay QSM, Leonie Hapeta, Jim Jefferies, Lorna Johnson, Karen Naylor, Bruno Petrenas, Aleisha Rutherford and Tangi Utikere.

Abstained:

Councillor Duncan McCann.

 

4-19

International Relations 6-monthly update

Memorandum, dated 24 January 2019 presented by the International Relations Manager, Toni Grace.

 

Moved Adrian Broad, seconded Duncan McCann.

The COMMITTEE RESOLVED

1.   That the Committee note the progress of International Relations activity over the past six months, contributing to the International Relations Plan and Economic Development Strategy

 

Clause 4-19 above was carried 16 votes to 0, the voting being as follows:

For:

The Mayor (Grant Smith) and Councillors Brent Barrett, Susan Baty, Rachel Bowen, Adrian Broad, Gabrielle Bundy-Cooke, Vaughan Dennison, Lew Findlay QSM, Leonie Hapeta, Jim Jefferies, Lorna Johnson, Duncan McCann, Karen Naylor, Bruno Petrenas, Aleisha Rutherford and Tangi Utikere.

 

5-19

Committee Work Schedule

 

Moved Adrian Broad, seconded Lorna Johnson.

The COMMITTEE RESOLVED

1.   That the Economic Development Committee receive its Work Schedule dated February 2019.

 

Clause 5-19 above was carried 16 votes to 0, the voting being as follows:

For:

The Mayor (Grant Smith) and Councillors Brent Barrett, Susan Baty, Rachel Bowen, Adrian Broad, Gabrielle Bundy-Cooke, Vaughan Dennison, Lew Findlay QSM, Leonie Hapeta, Jim Jefferies, Lorna Johnson, Duncan McCann, Karen Naylor, Bruno Petrenas, Aleisha Rutherford and Tangi Utikere.

    

 

The meeting finished at 10.25am

 

Confirmed 8 April 2019

 

 

 

Chairperson


 


 

 

 


PALMERSTON NORTH CITY COUNCIL

 

Memorandum

TO:                                Economic Development Committee

MEETING DATE:           8 April 2019

TITLE:                            Summary report on the December 2018 Manawatū Quarterly Economic Monitor, Major Developments, and the Quarterly Retail Report for January 2019

DATE:                            21 March 2019

Presented By:            Peter Crawford, Economic Policy Advisor, Strategy and Planning

Linda Stewart, Chief Executive, CEDA

APPROVED BY:             Sheryl Bryant, General Manager - Strategy & Planning  

 

 

RECOMMENDATION(S) TO Economic Development Committee

1.   That the December 2018 Manawatū Quarterly Economic Monitor report, Major construction and development projects in Palmerston North and the Manawatū region report, and the Marketview Manawatū region quarterly retail report for January 2019, are received

 

 

 

1.         Overview

1.1.      This memorandum presents a summary of:

a.      the key themes in the latest Manawatū Quarterly Economic Monitor for the December 2018 quarter;

b.      an update on the outlook for major construction projects for the region;

c.      the latest CEDA retail report for the three months ended January 2019.

1.2.      The latest Manawatū Quarterly Economic Monitor report indicates a further strengthening in GDP growth in Palmerston North, which is estimated to have increased from 1.9% in the year to December 2017 to 3.3% in the year to December 2018.  GDP growth in Manawatū district is estimated to have slowed.  GDP estimates for previous quarters have been revised down, suggesting growth in the last quarter of 2017 and the early 2018 was weaker than initially estimated by Infometrics.  The estimates are reviewed on an annual basis.

2.         manawatū quarterly economic monitor – December 2018

2.1       Estimated annual gross domestic product (GDP) growth in the Manawatū region was 3.2% in the year ended December 2018, an improvement from the estimated 2.8% increase in the year to September.  New Zealand GDP increased by 2.8% in the year to December 2018.

a.         Palmerston North GDP increased by 3.3%,

b.         Manawatū district GDP increased by 2.7%.

2.2       Annual salaries and wages paid in the region in the year ended December 2017 were $2,914 million, increasing by 3.9% from the previous year, while earnings for New Zealand increased by 6.0%.

a.         Palmerston North annual salaries and wages were $2,495 million, increasing by 3.2% from 2016,

b.         Manawatū district salaries and wages were $418 million, increasing by 8.2%.

2.3       Annual median salaries and wages paid in the region in the year ended December 2017 were $49,195, increasing by 2.6% from the previous year, while median salaries and wages for New Zealand were $51,300, also increasing by 2.6% from the previous year.

a.         Palmerston North median salaries and wages were $49,560, increasing by 2.7% from 2016,

b.         Manawatū district median salaries and wages were $47,240, increasing by 2.4%.

2.4       Electronic card retail spending in the Manawatū region in the December 2018 quarter was $379 million, an increase of 5.2% from the December 2017 quarter, while national growth was 3.2%. Statistics New Zealand estimates that retail prices increased by 1.0% in the year to December 2018.

a.         Annual electronic card retail spending in the region for the year ended December 2018 was $1,358 million, an increase of 5.3% from 2017. This compares with an increase of 3.9% for New Zealand.

2.5       Commercial accommodation guest nights in the Manawatū region increased by 10.3% in the December 2018 quarter from the December 2017 quarter, while national guest nights increased by 2.9%. 

a.         Annual commercial guest nights in the Manawatū region were 487,720 in the year ended December 2018, an increase of 3.8% from the previous year.  This was the highest annual number recorded in the region. This compares with an increase of 2.3% for New Zealand.

2.6       The total value of building consents issued in the region in the December 2018 quarter was $108 million, compared with $71 million in the December 2017 quarter, an increase of 53%.  Manawatū district increased by 98% while Palmerston North increased by 34%.  National consent values increased by 9%.

a.         Building consents to the value of $400 million were issued in the region in the year to December 2018, an increase of $133 million (44% increase) from the previous year.  National consent values increased by 7% over the same period.  The value of building consents issued in Palmerston North was $299 million, an increase of 63% from the previous year, while Manawatū district consents were $101 million, increasing by 8% from the previous year.

b.         Consents for 193 new residential dwellings were issued in the region in the December 2018 quarter, compared with 112 in the December 2017 quarter, an increase of 72%. National consents increased by 6%. 

c.         Consents for 597 new residential dwellings were issued in the region in the year ended December 2018, compared with 528 in the previous year, an increase of 27%. National consents increased by 5%. There were 477 consents issued in Palmerston North, an increase of 40% from the previous year, while there were 194 in Manawatū district, an increase of 13%.

d.         Non-residential consents to the value of $157 million were issued in the region during the year to December 2018, an increase of 77% from the previous year. Consents issued in Palmerston North were $139 million, an increase of 128% from 2017, while consents were $18 million in Manawatū district, a decline of 37%.  National consents increased by 9% over the same period.

2.7       Car registrations in the region declined by 3.2% in the year ended December 2018 (national registrations declined by 6.7%) while the number of commercial vehicles registered increased by 14.5% (compared to a national increase of 1.6%).

2.8       It is estimated the annual average unemployment rate in the Manawatū region in the year ended December 2018 was 5.4%, which was above the unemployment rate of 4.3% for New Zealand.

2.9       The number of people in the region registered for the MSD Job Seekers benefit increased by 7.5% in December 2018 from December 2017, while the number in New Zealand increased by 8.9%. The MSD benefit numbers reported in the Infometrics report are based on the average of the last four quarters.

2.10     Traffic flows in the Manawatū region in the year to December 2018 increased by 1.6% from 2017, while there was an increase of 2.7% for New Zealand.

2.11     Data for net overseas migration is not currently available at a territorial authority level from Statistics New Zealand so Infometrics has attempted to measure annual population growth using the number of people living in the region who are registered with the Central Primary Health Organisation (PHO).  This data has been supplied to Infometrics by the Ministry of Health, which has broken down the PHO data set by place of residence.  This data suggests that the number of Palmerston North residents enrolled with the PHO increased by just 468 people between January 2018 and January 2019, with a decline in PHO enrolments of 632 people between October 2018 and January 2019.

2.12     Data supplied to Council by the PHO shows that the total number of people enrolled at Palmerston North practices increased from 91,371 in January 2018 to 93,448 in January 2019, an increase of 2,077 people.  The number of people enrolled at Palmerston North practices is higher than the estimated population because of the number of non-residents who choose to enrol with a practice here rather than where they live, particularly commuters from other local authorities.  In the PHO region it is estimated that around 93% of the population is registered with a PHO, which is the same at the average for New Zealand.

2.13     Infometrics agrees with the concern with the data and is currently waiting for a full response from the Ministry of Health.  The Ministry’s initial advice is that there has been an increase in the number of records supplied by the DHB that have no address data.  The PHO enrolment data is one of the datasets being investigated for use with filling gaps in the Census 2018 counts, so it has been timely to identify issues with the Ministry of Health data before the Census is finalised.

2.14     Tourism spending in the Manawatū region in the December quarter was $127 million, an increase of 2.9% from the December 2017 quarter. Total tourism spending in New Zealand increased by 1.3%.

a.         Total visitor spending in the region was $476 million in the year ended December 2018 ($427 million in Palmerston North and $49 million in Manawatū district), increasing by 4.2% from the previous year (4.3% increase for New Zealand).

b.         Domestic visitor spending in the region was $403 million in the year ended December 2018, increasing by 3.5% from the previous year, while there was a 4.0% increase for New Zealand. There was strong growth in spending in the December quarter from visitors from the rest of the Manawatū-Whanganui region and from the Waikato.

c.         International visitor spending in the region was $72 million in the year ended December 2018, increasing by 8.2% from the previous year (4.7% increase for New Zealand). Countries contributing the most to the increase in spending in the region were Australia, the rest of Oceania (excluding Australia), and Canada.

2.11     The December 2018 Manawatū Quarterly Economic Monitor report is attached.

3.         major developments

3.1       Major development and construction projects announced for Palmerston North and the Manawatū region amount to at least $2.5 - $3.0 billion of construction activity over the period to 2030.  The implementation of the MidCentral DHB investment plan has been delayed due to uncertainty over when the planned expenditure will be approved by the government.  While the value of government investment in the purchase of land for a new KiwiRail freight hub has been announced, the amount of investment required for construction of the freight hub is still to be confirmed.

3.2       The Major construction and development projects in Palmerston North and the Manawatū region report is attached.

4.         MANAWATŪ REGION QUARTERLY ELECTRONIC CARD RETAIL REPORT FOR JANUARY 2019

4.1       The latest CEDA quarterly retail report for the three months ended January 2019 shows a further strength in the rate of electronic card retail growth in the Manawatū region compared with the growth rate for New Zealand.  Spending in the region increased by 4.2% in the three months ended January 2019 (from the same period last year), while spending growth across New Zealand increased by 2.4%.

4.2       Growth in spending locally by local residents increased by 6.3% in the three months ended January 2019, and was the main contributor to the growth in total spending at retailers in the region.  Spending by local residents in other regions declined by 5.4% in the three months ended January while visitor spending in the region increased by 2.0%.

4.3       Visitor spending from the rest of the Horizons region increased by 4.5% in the three months ended January 2019 while visitor spending from the rest of New Zealand declined by 0.6%.  Contributing to this weakness in growth from other regions was a 15.2% decline in spending from Hawkes Bay residents. Growth in spending from Auckland residents continues, with an increase of 5.7% in the three months ended January, while spending from the Waikato increased by 15.3%.

4.4       Retail precinct data shows a 5.9% decline in spending in Broadway, reflecting the impact of the closure of Whitcoulls in May. There was an increase of 4.8% in the rest of Palmerston North CBD, but the strongest growth in the city was in the outer CBD, where spending increased by 13.1% in the three months to January compared with the same period last year.  The rate of growth in spending remains higher in Manawatū district, with a 9.3% increase in Sanson in the three months to January and an increase of 5.6% across the district.  Spending in the district was boosted by a 12.1% increase in fuel spending in the three months ended January.  The fuel sector accounts for 20% of annual spending in the district compared with 11% in Palmerston North.

4.5       Manawatū region residents spent $28.7 million online in the three months ended January 2019, accounting for 7.6% of total electronic card spending by residents in the region.  This remains well below the 11.0% online share for all New Zealand residents.  Local resident online spending increased by 20.0% in the three months ended January, while national growth was 13.1%.  In the year ended January 2019, online retail spending by Manawatū residents increased by $14.0 million, while total spending by residents and visitors at Manawatū region retail stores increased by $71.8 million.

4.6       The January 2019 Marketview Manawatū region quarterly retail report is attached.

Does the Committee have delegated authority to decide?

If Yes quote relevant clause(s) from Delegations Manual

Yes

Are the decisions significant?

No

If they are significant do they affect land or a body of water?

No

Can this decision only be made through a 10 Year Plan?

No

Does this decision require consultation through the Special Consultative procedure?

No

Is there funding in the current Annual Plan for these actions?

No

Are the recommendations inconsistent with any of Council’s policies or plans?

No

 

The recommendations contribute to Goal 1: An Innovative and Growing City

The recommendations contribute to the outcomes of the Economic Development Strategy

The recommendations contribute to the achievement of action/actions in the Economic Development Plan

The action is: Attract investment expansion and new businesses.

Contribution to strategic direction

Reporting on economic trends in the city and Manawatū region, and the longer-term outlook for growth, is important for encouraging local businesses to invest in growing their business, and attracting new businesses to the city.

 

 

Attachments

1.

December 2018 Manawatū Quarterly Economic Monitor

 

2.

Major construction and development projects in Palmerston North and the Manawatū region report

 

3.

January 2019 Marketview Manawatū region quarterly retail report

 

    


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PALMERSTON NORTH CITY COUNCIL

 

Committee Work Schedule

TO:                                Economic Development Committee

MEETING DATE:           8 April 2019

TITLE:                            Committee Work Schedule

 

 

RECOMMENDATION(S) TO Economic Development Committee

1.   That the Economic Development Committee receive its Work Schedule dated April 2019.

 

 

Attachments

1.

Work Schedule

 

    


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