Minutes of Economic Development Committee - Wednesday, 8 December 2021

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 08 December 2021, commencing at 1.06pm

Members

Present:

Councillor Leonie Hapeta (in the Chair), The Mayor (Grant Smith) and Councillors Brent Barrett, Susan Baty, Rachel Bowen, Zulfiqar Butt, Vaughan Dennison, Renee Dingwall, Patrick Handcock ONZM, Bruno Petrenas, Aleisha Rutherford and Mr Ruma Karaitiana.

Non Members Present:

Councillors Lorna Johnson, Billy Meehan and Karen Naylor.

Apologies:

Councillors Lew Findlay QSM and Orphée Mickalad,

Councillor Susan Baty left the meeting at 1.25pm during consideration of clause 29. She entered the meeting again at 1.27pm after the consideration of clause 30. She was not present for clause 29.

27-21

Apologies

Moved Leonie Hapeta, seconded Vaughan Dennison.

The COMMITTEE RESOLVED

1. That the Committee receive the apologies.

Clause 27-21 above was carried 15 votes to 0, the voting being as follows:

For:

The Mayor (Grant Smith) and Councillors Leonie Hapeta, Brent Barrett, Susan Baty, Rachel Bowen, Zulfiqar Butt, Vaughan Dennison, Renee Dingwall, Patrick Handcock ONZM, Lorna Johnson, Billy Meehan, Karen Naylor, Bruno Petrenas, Aleisha Rutherford and Ruma Karaitiana.

28-21

Retail Health Check Profile - November 2021

Memorandum, presented by Julie Macdonald, Strategy and Policy Manager.

Moved Leonie Hapeta, seconded Vaughan Dennison.

The COMMITTEE RESOLVED

1. That the memorandum titled ‘Retail Health Check Profile – November 2021’, be received for information.

Clause 28-21 above was carried 15 votes to 0, the voting being as follows:

For:

29-21

Presentation - Andrew Heaphy

Andrew Heaphy, Plaza Director spoke on the retail health of the Plaza shopping centre. He made the following comments:

· Covid has distorted the numbers, the Plaza prefers to compare the 2019 year with 2021, to get a more accurate reflection on the health of the centre.

· Generally retail in the Plaza has bounced back but some services are struggling.

· Personal services sales have decreased by 30% and food outlets sales are struggling.

· Some well-known retailers have gone – Lush is only trading in the main centres and STA travel has ceased.

· Have noticed a change in shopping habits of the mature customer, with stores that cater for those shoppers experiencing lower sales.

· In terms of property, there are some vacancies in the Plaza. We are prepared to wait for a ‘quality offer’ and have pop up stores to fill the vacancies.

· Over the last year, there has been pressure on landlords for abatements to keep the tenants going. Rising rates has not helped and insurance premiums keep increasing (30-45%).

· Crime continues to be a problem with burglaries and vandalism causing a nuisance and adding to costs. Tenants are responsible for store security.

· The Plaza is not responsible for vaccines mandate passes as it is an essential service. Mandates are managed at the store level.

Councillor Susan Baty left the meeting at 1.25pm

Moved Leonie Hapeta, seconded Vaughan Dennison.

The COMMITTEE RESOLVED

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

Clause 29-21 above was carried 14 votes to 0, the voting being as follows:

For:

The Mayor (Grant Smith) and Councillors Leonie Hapeta, Brent Barrett, Rachel Bowen, Zulfiqar Butt, Vaughan Dennison, Renee Dingwall, Patrick Handcock ONZM, Lorna Johnson, Billy Meehan, Karen Naylor, Bruno Petrenas, Aleisha Rutherford and Ruma Karaitiana.

30-21

Presentation - Central Economic Development Agency (CEDA)

David Wright, Interim Chief Executive and Sarah Towers, Talent and Skills Officer provided an update on CEDA’s current workstreams

They spoke on the following topics:

- Food Strategy - purpose of draft strategy is to identify the economic areas of the region which CEDA can capitalise on to exploit our competitive advantage.

- Central NZ Distribution Hub – Strategy is developed and is being implemented.

- Profiling the region – critical enabler of economic development.

- Regional identity brand being launched.

- NZ house and garden event scheduled for 2022.

- Talent and Skills - focus on infrastructure and construction; and food and fibre sectors. Sector profiles have been developed and ‘talent-attraction’ marketing campaign has begun for the infrastructure and construction industry in partnership with the sector. Campaign focusses on the lifestyle options of the region to attract workers.

- Defence force - relocation project for defence families into region with a focus on careers and transitioning outside of the force into other work.

Councillor Susan Baty entered the meeting again at 1.27pm.

Moved Leonie Hapeta, seconded Vaughan Dennison.

The COMMITTEE RESOLVED

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

Clause 30-21 above was carried 15 votes to 0, the voting being as follows:

For:

31-21

Presentation - Palmy Business Improvement District (BID)

Rob Campbell, Chair and Amanda Linley from the Palmy Business Improvement District (BID) updated the committee on the work done in the last 6 months,

Purpose of the BID is to grow the city centre, advocate for its members and increase vibrancy in the city centre.

They outlined their key milestones for the last 6 months:

· Advocacy on behalf of community in relation to increase in carpark changes and extending hours.

· Engaging and supporting businesses to find solutions to nuisance problems in the city centre (eg begging).

· Working on a vision and mission for the Palmy BID.

· Working with Council to negotiate a funding agreement.

Future work proposed includes: finalising an operation structure, advocacy focus will be on centre city parking, regional transport and civic and cultural prescient

Moved Leonie Hapeta, seconded Vaughan Dennison.

The COMMITTEE RESOLVED

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

Clause 31-21 above was carried 15 votes to 0, the voting being as follows:

For:

32-21

Confirmation of Minutes

Moved Leonie Hapeta, seconded Vaughan Dennison.

The COMMITTEE RESOLVED

1. That the minutes of the Economic Development Committee meeting of 15 September 2021 Public be confirmed as a true and correct record.

Clause 32-21 above was carried 15 votes to 0, the voting being as follows:

For:

33-21

Summary report on the September 2021 Quarterly Economic Monitor, Annual Population report and Annual Business and Employment report

Memorandum, presented by Peter Crawford, Economic Policy Adviser.

Moved Leonie Hapeta, seconded Vaughan Dennison.

The COMMITTEE RESOLVED

1. That the Summary report on the September 2021 Palmerston North Quarterly Economic Monitor, Annual Population report and Annual Business and Employment report is received.

Clause 33-21 above was carried 15 votes to 0, the voting being as follows:

For:

34-21

Portfolio Update 2020/21 - Education and Students

Memorandum, presented by Councillor Rachel Bowen, Education and Students Portfolio Lead.

Moved Leonie Hapeta, seconded Vaughan Dennison.

The COMMITTEE RESOLVED

1. That the Committee receive the Portfolio Update – Education and Students for information.

Clause 34-21 above was carried 15 votes to 0, the voting being as follows:

For:

35-21

Committee Work Schedule

Moved Leonie Hapeta, seconded Vaughan Dennison.

The COMMITTEE RESOLVED

1. That the Economic Development Committee receive its Work Schedule dated December 2021.

Clause 35-21 above was carried 15 votes to 0, the voting being as follows:

For:

The meeting finished at 2.25PM

Confirmed 16 March 2022

Chairperson