Agenda of Economic Growth Committee - Wednesday, 20 November 2024

Palmerston North City Council

Minutes of the Economic Growth Committee Meeting Part I Public, held in the Council Chamber, First Floor, Civic Administration Building, 32 The Square, Palmerston North on 18 September 2024, commencing at 9.00am

Members

Present:

Councillor Leonie Hapeta (in the Chair), The Mayor (Grant Smith) and Councillors William Wood, Mark Arnott, Brent Barrett, Rachel Bowen, Vaughan Dennison, Roly Fitzgerald, Lorna Johnson, Debi Marshall-Lobb, Billy Meehan and Orphée Mickalad.

Non Members:

Councillors Lew Findlay, Councillor Patrick Handcock and Councillor Kaydee Zabelin.

Councillor Lorna Johnson left the meeting at 12.35pm during consideration of clause 52-24. She was not present for clauses 52-24 and 53-24.

	Karakia Timatanga
	Councillor Kaydee Zabelin opened the meeting with karakia.

47-24

Public Comment

Peter French recommended a design option to improve the layout of the Vogel/Hayden/Featherston Street intersection.

Harvey Jones, Phil Stevens and Arthur Yeo made public comment in support of the Notice of Motion to keep Te Ahu a Turanga highway toll-free.

Moved Leonie Hapeta, seconded William Wood.

The COMMITTEE RESOLVED

1. That the Economic Growth Committee receive the public comments.

Clause 47-24 above was carried 15 votes to 0, the voting being as follows:

For:

The Mayor (Grant Smith) and Councillors Leonie Hapeta, William Wood, Mark Arnott, Brent Barrett, Rachel Bowen, Vaughan Dennison, Roly Fitzgerald, Lorna Johnson, Debi Marshall-Lobb, Billy Meehan, Orphée Mickalad, Lew Findlay, Patrick Handcock and Kaydee Zabelin.

48-24

Presentation - Manawatū Chamber of Commerce

Amanda Linsley, Chief Executive, and Steve Davey, Chair, Manawatū Chamber of Commerce, presented to the Committee.

They spoke on changes to the rating system, consultation on the Te Ahu a Turanga proposed toll, local business confidence, and business awards.

Moved Leonie Hapeta, seconded William Wood.

The COMMITTEE RESOLVED

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

Clause 48-24 above was carried 14 votes to 1, the voting being as follows:

For:

The Mayor (Grant Smith) and Councillors Leonie Hapeta, William Wood, Mark Arnott, Brent Barrett, Rachel Bowen, Vaughan Dennison, Roly Fitzgerald, Debi Marshall-Lobb, Billy Meehan, Orphée Mickalad, Lew Findlay, Patrick Handcock and Kaydee Zabelin.

Against:

Councillor Lorna Johnson.

49-24

Presentation - Palmy BID

Rob Campbell, Chairperson, and Matthew Jeanes, General Manager, of Palmy BID presented to the Committee.

They summarised the activities, programmes and projects they developed during the year, along with future challenges.

They spoke on business confidence, retail crime and homelessness and how they are working alongside the community to provide more tools and information to be able to deal with these.

Moved Leonie Hapeta, seconded William Wood.

The COMMITTEE RESOLVED

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

Clause 49-24 above was carried 14 votes to 0, the voting being as follows:

For:

The Mayor (Grant Smith) and Councillors Leonie Hapeta, William Wood, Mark Arnott, Brent Barrett, Rachel Bowen, Roly Fitzgerald, Lorna Johnson, Debi Marshall-Lobb, Billy Meehan, Orphée Mickalad, Lew Findlay, Patrick Handcock and Kaydee Zabelin.

Note:

Councillor Vaughan Dennison did not vote.

50-24

Confirmation of Minutes

Moved Leonie Hapeta, seconded William Wood.

The COMMITTEE RESOLVED

1. That the minutes of the Economic Growth Committee meeting of 19 June 2024 Part I Public be confirmed as a true and correct record.

Clause 51-24 above was carried 13 votes to 0, with 1 abstention, the voting being as follows:

For:

The Mayor (Grant Smith) and Councillors Leonie Hapeta, William Wood, Mark Arnott, Brent Barrett, Rachel Bowen, Vaughan Dennison, Roly Fitzgerald, Lorna Johnson, Billy Meehan, Orphée Mickalad, Patrick Handcock and Kaydee Zabelin.

Abstained:

Councillor Debi Marshall-Lobb.

Note:

Councillor Lew Findlay did not vote.

The meeting adjourned at 10.30am.

The meeting resumed at 10.51am.

51-24	Notice of Motion - Tolling Proposal for Te Ahu a Turanga Councillor Brent Barrett presented the notice of motion. David Murphy, General Manager Strategic Planning and James Miguel, Senior Transport Planner presented the officers’ advice. The Mayor moved an additional motion to include in the submission – that Council does support tolling future roads when the affected community has prior knowledge (of a toll) before the project commences.
	Moved Brent Barrett, seconded Lorna Johnson. The COMMITTEE RECOMMENDS 1. That Council lodge a submission calling for Te Ahu a Turanga to be kept free of road tolling.
	Clause 51.1-24 above was carried 11 votes to 4, the voting being as follows: For: The Mayor (Grant Smith) and Councillors Brent Barrett, Rachel Bowen, Vaughan Dennison, Roly Fitzgerald, Lorna Johnson, Debi Marshall-Lobb, Billy Meehan, Lew Findlay, Patrick Handcock and Kaydee Zabelin. Against: Councillors Leonie Hapeta, William Wood, Mark Arnott and Orphée Mickalad.
	Moved Grant Smith, seconded Leonie Hapeta. The COMMITTEE RECOMMENDS 2. That in principle, Palmerston North City Council support the option of tolls on future new roading/highway projects where that is signalled in advance of the project.
	Clause 51.2-24 above was carried 15 votes to 0, the voting being as follows: For: The Mayor (Grant Smith) and Councillors Leonie Hapeta, William Wood, Mark Arnott, Brent Barrett, Rachel Bowen, Vaughan Dennison, Roly Fitzgerald, Lorna Johnson, Debi Marshall-Lobb, Billy Meehan, Orphée Mickalad, Lew Findlay, Patrick Handcock and Kaydee Zabelin.
	Moved William Wood, seconded Vaughan Dennison. The COMMITTEE RESOLVED 3. That the Committee receive the officers’ advice attached to the Notice of Motion - Tolling Proposal for Te Ahu a Turanga.
	Clause 51.3-24 above was carried 15 votes to 0, the voting being as follows: For: The Mayor (Grant Smith) and Councillors Leonie Hapeta, William Wood, Mark Arnott, Brent Barrett, Rachel Bowen, Vaughan Dennison, Roly Fitzgerald, Lorna Johnson, Debi Marshall-Lobb, Billy Meehan, Orphée Mickalad, Lew Findlay, Patrick Handcock and Kaydee Zabelin.

The Chair deferred the following reports to the next Economic Growth meeting on 20 November 2024:

· International Relations and Education – 6 Monthly Report

· International Trip to China, April 2024

· Palmerston North Quarterly Economic Update – September 2024

· Road Maintenance Contract – 6 Monthly update

52-24

Committee Work Schedule - September 2024

Moved Leonie Hapeta, seconded William Wood.

The COMMITTEE RESOLVED

1. That the Economic Growth Committee receive its Work Schedule dated September 2024.

Clause 52-24 above was carried 13 votes to 0, the voting being as follows:

For:

The Mayor (Grant Smith) and Councillors Leonie Hapeta, William Wood, Mark Arnott, Brent Barrett, Rachel Bowen, Vaughan Dennison, Roly Fitzgerald, Debi Marshall-Lobb, Orphée Mickalad, Lew Findlay, Patrick Handcock and Kaydee Zabelin.

Note:

Councillors Lorna Johnson and Billy Meehan did not vote

Exclusion of Public

53-24

Recommendation to Exclude Public

Moved William Wood, seconded Leonie Hapeta.

The COMMITTEE RESOLVED

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
17.	Tamakuku Terrace design guidelines review	Maintain legal privilege: and commercial activities:	s7(2)(g) and s7(2)(h)

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 Stephen Cornwall, Veros, be permitted to remain after the public has been excluded for the reason stated, for his knowledge and ability to assist the meeting in speaking to, and answering questions for Item 17 Tamakuku Terrace design guidelines review, noting that he will be present at the meeting only for that report.

Clause 53-24 above was carried 13 votes to 0, the voting being as follows:

For:

The Mayor (Grant Smith) and Councillors Leonie Hapeta, William Wood, Mark Arnott, Rachel Bowen, Vaughan Dennison, Roly Fitzgerald, Debi Marshall-Lobb, Billy Meehan, Orphée Mickalad, Lew Findlay, Patrick Handcock and Kaydee Zabelin.

Note:

Councillors Brent Barrett and Lorna Johnson did not vote.

The Chair (Leonie Hapeta) vacated the Chair, and announced the Deputy Chair (William Wood ) would chair the confidential part of the meeting.

The public part of the meeting finished at 12.37pm.

Confirmed 20 November 2024

Chair

Memorandum

TO: Economic Growth Committee

MEETING DATE: 18 September 2024

TITLE: International Trip to China, April 2024

Presented By: Councillor Debi Marshall-Lobb

APPROVED BY: Waid Crockett, Chief Executive Officer

RECOMMENDATION TO Economic Growth Committee

1. That the Committee receive the memorandum titled ‘International visit to China, April 2024’ presented on 18 September 2024.

This Report was deferred from the Committee meeting on 18 September 2024

1. ISSUE

1.1 On 6 March 2024, Council approved the Deputy Mayor to travel to China from 11 - 25 April 2024 to join the World Class Education delegation to Hefei, China and to cover up to $400 travel costs associated with this trip.

1.2 This memorandum reports back on outcomes of that visit.

Mā te kimi ka kite, mā te kite ka mōhio, mā te mōhio ka mārama

Seek and discover; discover and know; know and become enlightened

2. background

2.1 The Director of World Class Education invited me to accompany their Education Delegation to China in order to give prominence to the City’s support of our schools and wider community. I was chosen because of my educational background (Retired Primary and Secondary School Principal, former ministerial appointee of the New Zealand Teachers’ Council and current Secondary School educator) as well as being Deputy Mayor.

2.2 The trip resulted in several Memoranda of Understanding (MoUs) between the participating Palmerston North schools and the partner schools. These agreements outline plans for student exchange programmes, aiming to enhance educational outcomes for both parties.

2.3 The trip was funded collectively by Awatapu College, Palmerston North Boys’ High School, Palmerston North Girls’ High School, Queen Elizabeth College, Whakarongo Primary School and World Class Education.

2.4 As stated on Palmerston North City Council’s (Council) website:

“Palmy is a growing hub of international activity and networks. We are home to world-class education and research institutes, international firms and businesses in trade. We welcome students from all over the world …Palmerston North City Council has an important role in helping our city become more internationally connected, competitive, and vibrant.”

2.5 Hence, this position corresponds with the objectives of the trip and also the Council’s goal to be an innovative and growing city: a globally connected city that fosters opportunities for local people, businesses and organisations.

3. trip report

Purpose of the Trip:

• To establish and consolidate strategic cooperative partnerships with schools in Changchun City, Wuxi City, Jiaxing City, and Hefei City.

• To foster friendly and sister inter-school relations between primary and secondary schools.

• To promote study trips, winter and summer camp activities for Chinese and New Zealand students.

• To encourage educational exchanges and visits, including teacher and school student exchange programmes, and to organise high-level forums on educational topics.

Palmerston North Participants and Schools:

• Mary Cherian, International Director - Awatapu College

• Minnie Young-Wilson, International Director - Palmerston North Boys’ High School

• Lina Hong, Director - International, Palmerston North Girls’ High School

• Sarah Lassen, Deputy Principal - Queen Elizabeth College

• Jaco Broodryk, Principal - Whakarongo Primary School

• Shirley Urquhart, Administration Manager - World Class Education

• Wendy Jochem, Director - World Class Education

Other Participants and Schools:

• Antoinette Walters, International Director - Waiuku College

• Stuart Kelly, Principal - Waiuku College

• Robert Gilbert, Principal - Papanui High School, Christchurch

• Jo Hunnikin, Principal - Waimate High School

Itinerary, Feedback and Photos

3.1 Attached is the travel itinerary (Attachment 1), feedback from school representative (Attachment 2) and photos (Attachment 3).

4. KEY FINDINGS

4.1 Cultural Exchange and Mutual Learning:

4.2 Both the local schools and partner schools gained valuable insights into each other’s educational systems and cultural contexts. This exchange fostered mutual respect and understanding, paving the way for future collaborations.

Benefits of Educational Delegation Trips:

4.3 Educational delegation trips offer multifaceted benefits, including improved teaching practices, the fostering of international partnerships, and enhanced student learning outcomes and experiences.

Insights:

4.4 World Class Education Limited have a well-established network and relationships with schools in China and provided a well-planned trip with multiple opportunities to meet school officials, parents and students.

4.5 Our school representatives were all experienced, diligent and professional educators who superbly promoted their schools and community; they also supported each other in a manner that was cooperative and collaborative.

4.6 The schools we visited were welcoming and genuinely interested in Palmerston North schools and our city.

5. RECOMMENDATIONS

Promoting Local Schools to Overseas Schools and their Students:

5.1 Promoting local schools to overseas schools and their students can strategically enhance educational opportunities, cultural diversity, and boost the local economy.

Suggest Palmerston North City Council considers:

1. Continuing to support and promote our local schools to cities with which they/we have formal relationships.

2. Look to develop a dedicated International section with a Education sub-set on our council’s website with information about our schools, highlighting their strengths and successes.

3. Where possible consider sending representatives to accompany local educational delegations to showcase the schools and interact directly with potential schools, students, families, civic leaders, and related organisations.

4. Collaborate on joint projects or initiatives that can raise the profile of our city and local schools internationally.

5. Take opportunities domestically within the City/region to welcome and host visiting schools, educators, and associated guests.

6. ACKNOWLEDGMENTS

6.1 I would like to thank the following people and schools:

• Wendy Jochem, Director of World Class Education for the Invitation to accompany the Delegation and for the opportunity to have such a positive experience to promote our city and schools.

• Mary Cherian of Awatapu College.

• Minnie Young-Wilson of Palmerston North Boys’ High School.

• Lina Hong, Palmerston North Girls’ High School.

• Sarah Lassen of Queen Elizabeth College.

• Jaco Broodryk of Whakarongo Primary School.

• and Shirley Urquhart, of World Class Education.

• Stuart Kelly and Antoinette Walters of Waiuku College; Robert Gilbert of Papanui High School, and Jo Hunnikin of Waimate High School.

• David Bovey, Rector-Palmerston North Boys’ High School.

• Tracey Walker, Principal-Palmerston North Girls’ High School.

• Gary Yeatman, Principal-Awatapu College.

• Chris Moller, Principal-Queen Elizabeth College.

• Jaco Broodryk, Principal-Whakarongo Primary School.

• Mayor Grant Smith, Elected Members of Council, Council Staff- especially Margaret Hunt, Kunal Chonkar and Sheila Monaghan.

7. NEXT STEPS

7.1 The on-going partnership between Palmerston North and China should continue to support the initiatives that further develop our relationship.

7.2 No further actions are required from this visit.

8. Compliance and administration

Does the Committee have delegated authority to decide?		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 objectives?		No
Are the recommendations inconsistent with any of Council’s policies or plans?		No
The recommendations contribute to: Whāinga 1: He tāone auaha, he tāone tiputipu Goal 1: An innovative and growing city
The recommendations contribute to the achievement of objective/objectives in: 14. Mahere mana urungi, kirirarautanga hihiri 14. Governance and Active Citizenship Plan Facilitate international economic and educational partnerships for the city.
Contribution to strategic direction and to social, economic, environmental and cultural well-being	The delegation visit helped to promote the city’s positive international reputation, demonstrated Palmerston North’s commitment to international collaboration and friendship, exchanged best practices and explored opportunities to enhance economic, educational, cultural and community cooperation.

Attachments

1.	Delegation Trip to China - Itinerary ⇩
2.	Delegation Trip to China - School Feedback ⇩
3.	Delegation Trip to China - Photos ⇩

Memorandum

TO: Economic Growth Committee

MEETING DATE: 20 November 2024

TITLE: International Relations and Education - 6 Monthly Report

Presented By: Gabrielle Loga, Manager International Relations

APPROVED BY: David Murphy, General Manager Strategic Planning

RECOMMENDATION TO Economic Growth Committee

1. That the Committee receive the report titled ‘International Relations and Education – 6 Monthly Report’ presented on 18 September 2024.

This Report was deferred from the Committee meeting on 18 September 2024

1. ISSUE

1.1 The purpose of this memorandum is to update the Economic Growth Committee on the key international relations and education activities over the past six months and their contribution to the relevant goal, strategy and plan.

2. BACKGROUND

2.1 This report outlines the key international relations and education activities since April 2024 and provides an updated activity schedule from the International Relations and Education Annual Plan 2024-2025.

3. International city partnership updates

Mihara, Japan (2019 – 2024)

3.1 In commemoration of the 5^th anniversary of the sister city relationship, Palmerston North city and Mihara city signed a Memorandum of Understanding with the Hiroshima Global Academy, providing an opportunity for Palmerston North high school students to study an International Baccalaureate (IB) programme at Hiroshima Global Academy at no tuition cost for 2-3 years. Mihara will assign an adopted local family to look after the selected student as their own, providing an authentic Japanese cultural experience and extra family support in Hiroshima during the study.

3.2 Officers have worked with Hiroshima Global Academy on a campaign to promote the programme to Palmerston North local high schools. Two international webinars were organised for interested students, parents, and teachers on 7 June and 5 July 2024 in Palmerston North to learn about Hiroshima Global Academy, the IB programme offered as well as the application process.

Figure 1- Mayor of Palmerston North, Mayor of Mihara, and Principal of Hiroshima Global Academy signed the MOU in January 2024

3.3 Two teachers from Hiroshima Global Academy travelled to Palmerston North in person from 19 – 23 August 2024. They visited Palmerston North Boys’ High School, Awatapu College, Freyberg High School, and Palmerston North Girls’ High School to present directly to the students about the programme. They also took the opportunity to visit Massey University, UCOL, IPU New Zealand, and the English Teaching College (ETC)while they were here.

3.4 There is potentially an opportunity to set up an annual study program from Hiroshima Global Academy to Palmerston North schools in the future, if capacity allows.

Kunshan, China (1994 – 2024)

3.5 In line with the celebration of 30 years of friendship between Palmerston North and Kunshan, Kunshan Municipal People’s Government sent a delegation to Palmerston North from 17 June to 19 June 2024 to attend E Tipu Boma Agri Summit and explore business opportunities with the city. The delegation was led by Mr Feng Renxin, Chairman of the Standing Committee of Kunshan Municipal People’s Congress.

3.6 Mayor Grant Smith and a small delegation went to Kunshan in January 2024 to progress discussions regarding cooperation in the AgriTech and food science sectors between FoodHQ, Palmerston North and the East China Agricultural Science and Technology Centre, Kunshan – Suzhou.

3.7 On 17 June 2024, with the presence of the Kunshan delegation, Palmerston North City Council held a formal signing ceremony where the two cities’ leading research and development centres agreed to work together on food innovation and technology. A copy of the memorandum of understanding is included as attachment one.

3.8 The Memorandum of Understanding between FoodHQ in Palmerston North and the East China Agricultural Science and Technology Centre in Kunshan (as attached in Attachment 1) will open doors for bilateral cooperation in modern agriculture, smart farming, and talent cultivation for companies, entrepreneurs, and research institutes in both countries.

Figure 2- MOU Signing Ceremony between FoodHQ and ECS-CAAS witnessed by PNCC and Kunshan delegation 2024

3.9 In addition to attending the E Tipu Boma Agri Summit, the Kunshan delegation visited Massey University, New Zealand Plant and Food Research, The Factory and Goodman Fielder factory in Longburn. These visits provided the delegation with insights into Palmerston North’s advanced achievements and offers in education, research, innovation and agricultural technology.

3.10 Upon return, Mr Feng Renxin sent a thank you letter to Palmerston North, signalling further collaborative opportunities in trade and agribusiness. A copy of the letter is included as attachment two.

3.11 The Kunshan delegation visit to Palmerston North and the formal signing ceremony in June 2024 was well reported by The NZ Herald, Manawatū Standard, and Chinese media, boosting the publicity and profile of both cities.

3.12 Conversations about subsequent visits from Kunshan – Suzhou to Palmerston North later in 2024 are happening as a direct result of the signed Memorandum of Understanding between FoodHQ and the East China Agricultural Science and Technology Centre.

A group of people in white coats in a laboratory

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Figure 3- Kunshan delegation visited NZ Plant & Food in June 2024

Guiyang, China (1992 – 2024)

3.13 Guiyang continues to express its desire to enhance educational collaboration with Palmerston North at all levels.

3.14 At elementary school level, Council’s International Relations and Education Advisor is exploring the partnership opportunity between the Central Primary School of Dula Buyi Village and Whakarongo School as well as other interested primary schools in the Manawatū.

3.15 At high school level, Guiyang is proposing a “Youth Ambassadors Summer Camp” for July 2025 in order to nurture international youth connections and consolidate the 32-year sister city relationship with Palmerston North. The programme offers to invite up to 20 Palmerston North high school students to participate in a 10-day and 9-night visit to Guiyang during the term 2 holiday in New Zealand. During their time in Guiyang, the students will get to visit scenic spots in Guiyang and colourful Guizhou, explore 23 different ethnic minority cultures and attend Chinese school activities. Council’s International Relations and Education Advisor will continue to further plan and action this programme in 2025.

3.16 At tertiary level, Council is offering support for Massey University School of Agriculture and Environment to revitalise their partnership with Guizhou University and Guizhou Vocational College of Agriculture.

Missoula, the USA (1982 – 2024)

3.17 Council’s International Relations division was awarded with the US Public Diplomacy Grant to bring Aspen Decker, a Salish representative from Missoula, to Palmerston North from 14-19 June 2024 to co-present with Rangitāne at E Tipu Boma Agri Summit on indigenous practices of food harvesting, consuming and sustainable traditions. Due to logistical issues, Aspen was unable to travel in person and had to send in a short video presentation instead.

3.18 The funding is now earmarked for Missoula Day in November 2024. The proposal is to bring a small indigenous delegation from the Salish Kootenai College, the Native American Centre of University of Montana, and Aspen Decker to Palmerston North to participate in Missoula Day 2024.

3.19 Missoula Children’s Theatre is also looking to take part in the event, working with Aspen Decker to create short plays telling indigenous stories to perform at Missoula Day in Palmerston North.

3.20 In addition, Missoula Children’s Theatre has been in discussions with Kane Parsons about the possibility of bringing their Little Red Truck programme to the children of Palmerston North in a near future. The discussion is supported by Arts Missoula, the Central Economic Development Agency and Palmerston North City Council. Further details on the Little Red Truck programme are available at: https://www.youtube.com/watch?v=N6ZU0H8aQh0

Wageningen, The Netherlands

3.21 An online meeting was held on 7 December 2023 attended by:

· Mayor Grant Smith – Palmerston North City Council

· Mayor Floor Vermeulen – Gemeete Wageningen

· Professor Chris Anderson – Massey University

· Mr Marco Otte – Wageningen University and Research

· Mrs Gabrielle Loga – Palmerston North City Council

· Mr Kunal Chonkar – Palmerston North City Council

· Ms Tjitske Zwerver – Gemeete Wageningen

3.22 During the 7 December 2023 meeting it was agreed that a ‘University Cities Network’ would be beneficial, providing cities with Agritech focused universities a platform to exchange ideas and address common issues. Universities will gain from student mobility agreements, supported by comprehensive, ongoing exchange programmes and commitments of financial or in-kind support from each member city. Cities will benefit from the influx of international students, researchers and visitors. Cities will also be able to attract talent from a larger pool and retain skilled workers to meet short, medium and long-term labour market needs as well as able to promote the city’s sustainable development objectives and bolster its competitiveness on the world stage.

3.23 A subsequent meeting on 13 August 2024 was attended by:

· Professor Chris Anderson – Massey University

· Mr Marco Otte – Wageningen University and Research

· Mrs Gabrielle Loga – Palmerston North City Council

· Ms Tjitske Zwerver – Gemeete Wageningen.

3.24 During this meeting, it was agreed that the 2025 Aotearoa New Zealand Sustainable Development Goals Summit would be an appropriate opportunity to launch the ‘University Cities Network’.

3.25 A draft proposal paper has been developed between PNCC, Wageningen, Massey University and Wageningen University and Research to identify the unique opportunities for the two cities and two world-class universities to be founding members of an AgriFutures Cities Network (ACN). The name of the network is subject to discussion and change if needed.

3.26 The draft proposal includes a clear statement of purpose, membership criteria, resources required, an implementation plan with expected outcomes and a risk analysis. The tentative plan is to:

· Submit the final version of the proposal paper to Council by December 2024.

· Send out invitation to potential members – cities and universities by January 2025

· Hold a launch ceremony at the Aotearoa New Zealand Sustainable Development Goals Summit in April 2025.

3.27 It is proposed that by endorsing this initiative, Palmerston North and Wageningen will be investing in a collaborative network that leverages cutting-edge Agritech innovations to foster sustainable development, create new economic opportunities and enhance resilience and quality of life for our community.

3.28 The next planning meeting and discussion is set to be on 17 September 2024.

4. kEY international relations events

Visit from the Embassy of the Republic of Cuba 15 April 2024

4.1 His Excellency Mr Luis Morejón Rodríguez arrived as Ambassador of the Republic of Cuba to New Zealand in February 2024. Coinciding with the 25th anniversary of diplomatic relations between New Zealand and Cuba, he paid an official visit to Palmerston North on 15 April 2024.

4.2 During his visit, the Cuban Ambassador met with Mayor Grant Smith to discuss collaborative opportunities in the healthcare sector, dairy sector, and in the art sector.

4.3 He was also given a facility tour of the Fonterra Research and Development Centre and discussed the Cuban dairy sector and the possibility of bringing New Zealand technology to build capability in Cuba.

A group of people standing in front of a building

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Figure 4- HE Ambassador Mr Rodgriguez visited Fonterra R&D Centre in April 2024

The Australian High Commission – Prima Facie 10 May 2024

4.4 The Australian High Commission organised a pre-show reception and performance of Suzie Miller’s Prima Facie at Centre Point Theatre on Friday 10 May 2024.

4.5 On behalf of Her Excellency Harinder Sidhu, the Deputy High Commissioner Ms Amy Guihot recognised the efforts of Council for showcasing the city to the diplomatic corps during the 2023 Festival of Cultures and promoting the economic potentials of the city’s key sectors. In her opening remarks, Ms Guihot acknowledged that bringing Prima Facie to showcase a facet of Australian culture to Palmerston North was the High Commission’s response to the city’s international relations efforts.

A group of people standing together

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Figure 5- Mayor Grant Smith, Director Lyndee-Jane Rutherford, and Deputy High Commissioner Ms Amy Guihot at the Prima Facie pre-show reception (left to right)

4.6 Prior to the reception, Mayor Grant Smith had a discussion with Ms Guihot about the longstanding relationship between New Zealand and Australia and the opportunities of collaboration and exchanges at a city level to deepen the bilateral partnership between the two countries. Ms Guihot believed that with strengths in distribution/logistics, Palmerston North should explore connections with Penrith city and Liverpool city in New South Wales in addition to Launceston, ‘City of Gastronomy’ in Tasmania.

4.7 As a result, Council has made initial contact with Penrith, Liverpool and Launceston. The International Relations division has assisted Te Utanganui Programme Director to organise visits to both Penrith and Liverpool as part of a knowledge acquisition trip to Australia in October 2024 to learn about their intermodal distribution hubs, logistics planning, new technology and implementation of sustainability.

4.8 The October trip to Australia was instigated by KiwiRail and has been organised by the Te Utanganui Programme Director. The primary purpose of the trip is to visit Moorebank intermodal freight hub, where KiwiRail have existing relationships. The trip will also involve discussions with potential investors in Te Utanganui.

Hefei Delegation 21 May 2024

4.9 Following Deputy Mayor Debi Marshall-Lobb’s education delegation visit to China in April 2024, she extended an invitation to a delegation from Hefei city, China to visit Palmerston North in May 2024. The purpose of the visit was to discuss potential collaborative opportunities between the two cities.

4.10 On 21 May 2024, the city welcomed 19 delegates from Hefei, accompanied by World Class Education Limited to Palmerston North City Council. Manawatū District Council’s Mayor Helen Worboys and other representatives from local education providers attended the pōwhiri. Jerry Shearman, Chief Executive of Central Economic Development Agency, gave a presentation on economic overview and opportunities in the Manawatū region.

4.11 It was encouraging to have Mayor Helen Worboys and Manawatū District Council join international relations activities and promoting the economy.

A group of people shaking hands

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Figure 6- Deputy Mayor D. Marshall-Lobb and councillors welcomed Hefei delegation at Pōwhiri

Yantai Delegation 29 August 2024

4.12 On 25 August 2022, Palmerston North organised a panel discussion on “Positioning your company for growth in China” in collaboration with CEDA and Manawatū Business Chamber. The panellists included:

· Mr Alistair Crozier - Executive Director of New Zealand China Council

· Mr Richard Dunsheath Trade Commissioner from New Zealand Trade & Enterprise

· Mr Kim Scott – Founder of Idea Developments

· Professor Stephen Kelly – Massey University

· Mr Brian Zheng – Founder & CEO of Livall Smart Helmet and Helmetphone, a Massey alumnus from China.

4.13 The event was attended by officials from the Embassy of the People’s Republic of China and a representative from Yantai Municipal People’s Government. Afterwards, with support by the Embassy of the People’s Republic of China, the Yantai Foreign Affairs Office contacted Palmerston North and made a proposal to explore collaborative opportunities for the two cities.

4.14 After considering Yantai’s city profile (included as attachment 3) and further communication with the Embassy of the People’s Republic of China, Palmerston North is open to consider partnership opportunities for the two cities, starting with the education sector.

4.15 On 29 August 2024, Yantai Municipal People’s Government sent a delegation to Palmerston North for the first time. The delegation was led by Mr Gao Jianguang, Head of the Organisation Department of the Communist Party of China Yantai Municipal Committee.

4.16 The delegation was welcomed by:

· Ms Debi Marshall-Lobb - Deputy Mayor of Palmerston North

· Ms Gabrielle Loga – Manager International Relations, Palmerston North City Council

· Ms Ping Peng – Senior Global Partnerships Advisor, Massey University.

4.17 Both cities presented an overview of each city and the respective international relations programme. Deputy Mayor and Mr Gao made remarks on behalf of each city, followed by the signing of a Letter of Intent (included as attachment 4) to explore a cooperative relationship for the purpose of facilitating educational exchanges and promoting collaborative opportunities in the education sector as well as opportunities in other fields such as economic, trade, culture, sports and tourism.

5. other development opportunities

Fuzhou, China

5.1 Fuzhou city approached Palmerston North through the Embassy of People’s Republic of China for a city partnership after former Prime Minister Chris Hipkins’ visit to China in June 2023.

5.2 Massey University has had partnerships with several institutions in Fuzhou and UCOL expressed interest in the Fuzhou market for their international education programmes. After consulting with the Palmerston North International Education Leadership Group, Palmerston North is open to consider educational partnership opportunities for the two cities, similar to the arrangement with Yantai and Shijiazhuang city.

5.3 Fuzhou has invited Mayor Grant Smith to attend the Fuzhou Tourism & Culture Festival and 2024 Friendship Cities Festival from 21 – 24 November 2024. Further detail of the invitation is included in a separate report to Council meeting on 4 September 2024 titled “International travel proposed for Mayor – November 2024”.

Kurihara, Japan

5.4 Ms Natsumi Kobayashi, an officer from Kurihara city, Miyagi prefecture was seconded to New Zealand on a three-month study tour. While attending English courses, Ms Kobayashi also connected with various councils for knowledge acquisition in the area of supporting migrants and international workers in the city.

5.5 Ms Kobayashi visited Palmerston North in July 2024 and met with Council’s Community Development and International Relations divisions.

5.6 Both Palmerston North and Kurihara have a blend of city and rural living with strengths in agricultural and livestock industry. Ms Kobayashi was impressed with the cutting-edge agricultural technology created and available in Palmerston North.

6. international education updates

Waseda programme

6.1 As a result of our successful proposal to Education New Zealand and the Waseda teacher familiarisation visit in November 2022, Manawatū and Hawkes Bay were selected as the two regions to host a group study programme for students from Waseda University’s network of affiliated schools in 2023 and beyond.

6.2 A fourth cohort of 15 students undertook a three-week programme in Palmerston North from 4 - 24 August 2024. The participating schools were Awatapu College, Palmerston North Boys High School, and Palmerston North Girls High School. The students study English, attend regular classes, participate in extracurricular activities and live with homestay families.

6.3 The tertiary providers are also showcased. The cohort spent an afternoon at Massey University touring various facilities such as lecture theatres, the library and recreation centre. They met with international staff who introduced them to the tertiary education system in New Zealand and the study options available in the region. The students also took part in an ‘Amazing Race’ challenge around campus and a Kahoot quiz for Massey-themed prizes. They had an afternoon excursion to UCOL Te Pūkenga and were welcomed with a Mihi Whakatau. This was followed by an introduction to the Student Connect Hub, a comprehensive campus tour and participation in an interactive, hands-on cooking class with the Chef and Hospitality lecturers.

6.4 A fifth cohort of 15 students will undertake a two-week programme in Palmerston North from 23 March to 5 April 2025.

Vietnamese Master Agent Visit and Sector Update event 14 June 2024

6.5 AU Hannah Co. Limited is Palmerston North’s master agent in Vietnam. In December 2023, with the support from Council, the company secured funding from Education New Zealand for a marketing campaign focused on promoting Palmerston North, Manawatū, and the local education providers to the Vietnamese market.

6.6 The funded campaign included the following offline and online events:

· Studying High School in New Zealand – Offline event on 6 January 2024

· The Differences and Advantages of Single-sex Education – Online event on 24 February 2024

· Discover Life and Study Experience in Palmerston North – Online event on 16 March 2024

· Popular Courses at Massey University – Online event on 13 April 2024.

6.7 In June 2024, Mr Allan Mai, Director, accompanied students and their families to visit Palmerston North in order to promote the city as a preferred study destination for them. Mr Mai also met and visited individual schools including Awatapu College, Palmerston North Girls’ High School and Palmerston North Boys’ High School.

6.8 During his visit to the city, Mr Mai presented the final report on the successful marketing campaign to the International Education Manawatū (IEM) group and the International Education Leadership Group (IELG). The campaign provided Vietnamese students and parents accurate, valuable and practical insights on studying opportunities in the Manawatū. The outcome of the campaign was very encouraging with a total market reach of over 200,000, including 127 event attendees and 3 long-term enrolments in 2024. More detail is included in the written report in attachment 5.

SIEBA Conference 25-26 June 2024

6.9 SIEBA (Schools International Education Business Association of New Zealand) is the recognised peak body for the international education school sector in Aotearoa New Zealand. Its purpose is to provide leadership and support for a high quality and sustainable international education sector for New Zealand schools. Currently SIEBA has over 400 member schools across the country.

6.10 Council’s Manager International Relations was invited to participate in a panel discussion at the SIEBA hui, a two-day biennial gathering of over 250 institutions specialising in international education. The panel discussion’s topic was on regional collaboration and international education.

6.11 Council’s International Relations division holds the function of coordinating, supporting and advising the local international education sector in enhancing the study experience in Palmerston North and promoting the city as a preferred study destination. The city works collaboratively with various regional/city partners in:

· Organising community events to welcome and integrate international students into the fibre network of the local community.

· Responding to marketing opportunities for the region and following up with potential leads as well as connecting suitable opportunities with education providers.

· Applying for regional funding for collaborative projects.

A person holding a microphone and sitting next to another person

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Figure 7- Ms Gabrielle Loga, Manager International Relations presented at 2024 SIEBA Hui

6.12 Presented alongside Christchurch Educated, the support for international education of Council was also recognised as robust, inclusive and innovative. The outcomes of the concerted effort include the success of various funded regional projects with Education New Zealand to promote Palmerston North, Manawatū and coordinating educational delegation visits to the city over the last two years.

6.13 The panel acknowledged some key challenges in fostering regional collaboration in the coming years are:

· to bring together diverse stakeholders with varying priorities and agendas.

· to enhance capacity of education providers and quality homestay network to meet increasing demands while ensuring sustainability for New Zealand education.

· to organise direct feedback loops with international students to understand their needs and improve on their study experience.

· to handle resource constraints and ensure effective resource allocation.

Global Ambassador Programme

6.14 Applications for the 2024/25 Global Ambassador Programme opened on 19 August and closed on 13 September 2024. Shortlisted applicants will be interviewed and up to five Global Ambassadors will be appointed by the end of September 2024.

6.15 The Global Ambassadors will:

· Take an active role in showcasing Palmerston North to important visitors and diplomats.

· Learn about our international partnerships and the role of the Welcoming Communities programme through public events and festivals.

· Receive Council support to plan and manage their own student event.

· Share our city’s story with the world.

6.16 The programme aims to empower local talent and support local initiatives with links to our international relations goals and community development goals in the Oranga Papaioea City Strategy and plans.

6.17 This programme is jointly managed by Council’s International Relations and Education Advisor and Community Development Advisor (Welcoming Communities).

7. Next steps: Updated annual plan 2024 – 2025

Proposed timeline	Planned activities	Partners to work with
August 2024	Waseda Study Group – 2^nd intake for 2024 HiGA visit Global Ambassadors Programme 2025 Yantai Delegation Visit	Awatapu College Palmerston North Girls’ High School Palmerston North Boys’ High School Massey University UCOL Waseda affiliated schools Hiroshima Global Academy PNGHS - PNBHS Awatapu College Freyberg High School Marcomms team Welcoming Communities Embassy of People’s Republic of China Yantai People’s Municipal Government
September 2024	Event ‘Pōwhiri – Welcoming newcomers’ 14 Sept 2024 Event ‘EU NZ FTA and Horizon Fund’ 16 Sept 2024 (tentative) To replace Event ‘The Effects of EU-NZ FTA’ Event ‘ASEAN – Open Doors for AgriTech’ – a market information session and networking opportunity for local businesses interested in one of the key strategic partners for New Zealand. 19 Sept 2024	Welcoming Communities Rangitāne iwi EU Delegation Ambassador CEDA Manawatū Business Chamber FoodHQ Massey University ASEAN Business Council NZIIA Palmerston North ASEAN Committee in Wellington Ministry of Foreign Affairs and Trade CEDA Manawatū Business Chamber
October 2024	Engage with Penrith, Liverpool, and Bradfield Development Authority to assist with Te Utanganui Sydney Knowledge Acquisition Trip 3-4 Oct Latin American and Spanish Film Festival – showcasing Latin cultures Diwali Mela – Festival of Light 2 Nov 2024	CEDA Australian High Commission Penrith Mayor’s Office Liverpool Mayor’s Office Bradfield Development Authority Shaun Kay, Palmerston North Arts Ambassador Manawatū Multicultural Council Embassy of Cuba Embassy of Peru Embassy of Argentina Other Latin American embassies PNCC Events Team High Commission of India High Commission of Republic of Fiji High Commission for Malaysia Singaporean High Commission Embassy of Republic of Indonesia Manawatū Multicultural Council Local communities: Indian, Nepalese, Sri Lanka, Fijian, Bangladeshi, Indonesian
November 2024	Event ‘Pōwhiri – Welcoming newcomers’ 16 Nov 2024 Missoula Day 23 November Hosting Missoula Indigenous delegation to Palmerston North Support the 17^th International Hydrocolloids Conference	Welcoming Communities Rangitāne Palmy BID Arts Missoula Destination Missoula Embassy of the USA Missoula Children’s Theatre Salish Kootenai College University of Montana Riddet Institute Massey University
December 2024	Event ‘Building Youth Engagement in sister city relationships, international policy and global citizenship’	NZIIA Palmerston North UCOL Massey University IPU NZ
January 2025	Lunar New Year Celebration	PNCC Events Team Manawatū Multicultural Council Chinese Community Vietnamese Community Korean Community Embassy of People’s Republic of China Embassy of Socialist Republic of Vietnam Embassy of Republic of Korea Singapore High Commission High Commission for Malaysia
February 2025	2025 Festival of Cultures: Day 1 – City tour themed ‘Sustainability’ TBC Day 2 – World Food, Craft and Music Fair	Members of the diplomatic corps CEDA Manawatū Multicultural Council PNCC Events Team
March 2025	Holi – Festival of Light Waseda Study Group – 1^st intake for 2025 Taipei Smart Cities Summit & Expo 2025	Manawatū Multicultural Council PNCC Events Team High Commission of India Awatapu College Nga Tawa Diocesan School Palmerston North Girls’ High School Palmerston North Boys’ High School Massey University UCOL Waseda affiliated schools TCA Taipei Economic & Cultural Office in Wellington Palmerston North start-ups and tech companies
April 2025	Application for Prime Minister Scholarships – Cultural Competence Development Tour Application for Prime Minister Scholarships – Emergency Management Tour	Education New Zealand Education New Zealand Manawatū-Whanganui Civil Defence Emergency Management Group
May 2025 June 2025	NZ-China Mayoral Forum TBC	Global Cities NZ The Chinese People's Association for Friendship with Foreign Countries (CPAFFC) Embassy of People’s Republic of China Ministry of Foreign Affairs and Trade

Proposed timeline

Planned activities

Partners to work with

August 2024

Waseda Study Group – 2^nd intake for 2024

HiGA visit

Global Ambassadors Programme 2025

Yantai Delegation Visit

Awatapu College

Palmerston North Girls’ High School

Palmerston North Boys’ High School

Massey University

UCOL

Waseda affiliated schools

Hiroshima Global Academy

PNGHS - PNBHS

Awatapu College

Freyberg High School

Marcomms team

Welcoming Communities

Embassy of People’s Republic of China

Yantai People’s Municipal Government

September 2024

Event ‘Pōwhiri – Welcoming newcomers’ 14 Sept 2024

Event ‘EU NZ FTA and Horizon Fund’

16 Sept 2024 (tentative)

To replace Event ‘The Effects of EU-NZ FTA’

Event ‘ASEAN – Open Doors for AgriTech’ – a market information session and networking opportunity for local businesses interested in one of the key strategic partners for New Zealand.

19 Sept 2024

Welcoming Communities

Rangitāne iwi

EU Delegation Ambassador

CEDA

Manawatū Business Chamber

FoodHQ

Massey University

ASEAN Business Council NZIIA Palmerston North

ASEAN Committee in Wellington

Ministry of Foreign Affairs and Trade

CEDA

Manawatū Business Chamber

October 2024

Engage with Penrith, Liverpool, and Bradfield Development Authority to assist with Te Utanganui Sydney Knowledge Acquisition Trip 3-4 Oct

Latin American and Spanish Film Festival – showcasing Latin cultures

Diwali Mela – Festival of Light

2 Nov 2024

CEDA

Australian High Commission

Penrith Mayor’s Office

Liverpool Mayor’s Office

Bradfield Development Authority

Shaun Kay, Palmerston North Arts Ambassador

Manawatū Multicultural Council

Embassy of Cuba

Embassy of Peru

Embassy of Argentina

Other Latin American embassies

PNCC Events Team

High Commission of India

High Commission of Republic of Fiji

High Commission for Malaysia

Singaporean High Commission

Embassy of Republic of Indonesia Manawatū Multicultural Council

Local communities: Indian, Nepalese, Sri Lanka, Fijian, Bangladeshi, Indonesian

November 2024

Event ‘Pōwhiri – Welcoming newcomers’ 16 Nov 2024

Missoula Day 23 November

Hosting Missoula Indigenous delegation to Palmerston North

Support the 17^th International Hydrocolloids Conference

Welcoming Communities

Rangitāne

Palmy BID

Arts Missoula

Destination Missoula

Embassy of the USA

Missoula Children’s Theatre

Salish Kootenai College

University of Montana

Riddet Institute

Massey University

December 2024

Event ‘Building Youth Engagement in sister city relationships, international policy and global citizenship’

NZIIA Palmerston North

UCOL

Massey University

IPU NZ

January 2025

Lunar New Year Celebration

PNCC Events Team Manawatū Multicultural Council

Chinese Community

Vietnamese Community

Korean Community

Embassy of People’s Republic of China

Embassy of Socialist Republic of Vietnam

Embassy of Republic of Korea

Singapore High Commission

High Commission for Malaysia

February 2025

2025 Festival of Cultures:

Day 1 – City tour themed ‘Sustainability’ TBC

Day 2 – World Food, Craft and Music Fair

Members of the diplomatic corps

CEDA

Manawatū Multicultural Council

PNCC Events Team

March 2025

Holi – Festival of Light

Waseda Study Group – 1^st intake for 2025

Taipei Smart Cities Summit & Expo 2025

Manawatū Multicultural Council

PNCC Events Team

High Commission of India

Awatapu College

Nga Tawa Diocesan School

Palmerston North Girls’ High School

Palmerston North Boys’ High School

Massey University

UCOL

Waseda affiliated schools

TCA

Taipei Economic & Cultural Office in Wellington

Palmerston North start-ups and tech companies

April 2025

Application for Prime Minister Scholarships – Cultural Competence Development Tour

Application for Prime Minister Scholarships – Emergency Management Tour

Education New Zealand

Manawatū-Whanganui Civil Defence Emergency Management Group

May 2025

June 2025

NZ-China Mayoral Forum TBC

Global Cities NZ

The Chinese People's Association for Friendship with Foreign Countries (CPAFFC)

Embassy of People’s Republic of China

Ministry of Foreign Affairs and Trade

8. Compliance and administration

Does the Committee have delegated authority to decide?		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?		Yes
Are the recommendations inconsistent with any of Council’s policies or plans?		No
The recommendations contribute to: Whāinga 1: He tāone auaha, he tāone tiputipu Goal 1: An innovative and growing city
The recommendations contribute to the achievement of objectives in: 2. Mahere whakawhanake ohaoha 2. Economic Development Plan
Contribution to strategic direction and to social, economic, environmental and cultural well-being	The 6-monthly report on International Relations and Education Activities outlines the progress of actions in the International Relations Chapter, which contributes to the Economic Development Plan and Innovative and Growing City Strategy.

Attachments

1.	MOU FoodHQ - ECS-CAAS, Kunshan Suzhou ⇩
2.	Thank You Letter from Mr Feng Renxin - Kunshan Delegation 2024 ⇩
3.	Yantai City Profile ⇩
4.	Letter of Intent with Yantai City ⇩
5.	AUH Marketing Campaign Final Report - Manawatū ⇩

Memorandum

TO: Economic Growth Committee

MEETING DATE: 20 November 2024

TITLE: Palmerston North Quarterly Economic Update - September 2024

Presented By: Stacey Andrews, City Economist

APPROVED BY: David Murphy, General Manager Strategic Planning

RECOMMENDATION TO ECONOMIC GROWTH COMMITTEE

1. That the Committee receive the Palmerston North Quarterly Economic Update – September 2024, including:

a. Palmerston North Economic Growth Indicators - September 2024 (Attachment 1), and

b. Palmerston North Quarterly Economic Card Spending Report - June 2024 (Attachment 2),

presented to the Economic Growth Committee on 20 November 2024.

This Report was deferred from the Committee meeting on 18 September 2024

1. introduction and purpose

1.1 This memorandum presents a summary of the key themes in the Palmerston North Quarterly Economic Update to September 2024, and the Palmerston North City Centre Quarterly electronic card spending (retail and selected tourism sectors) for the June quarter 2024.

1.2 The quarterly economic update is prepared in-house, utilising data from a range of sources to provide the most up-to-date information available on the city economy. This includes national and global data where appropriate, to inform us of broader conditions that are impacting on local economic conditions.

1.3 The quarterly economic update is organised under the categories of Gross Domestic Product (GDP), ‘business and jobs’, ‘earnings and income’, ‘spending’, and ‘housing’. National data that influences the city economy, such as the Consumer Price Index (CPI) and the Official Cash Rate (OCR), are also included in the quarterly economic update. This update is attached as Appendix 1.

1.4 The Palmerston North City Centre Quarterly electronic card spending report is prepared in-house and provided as a resource to the city retail sector. This report includes information on retail spending across the city and by precinct, as well as data on retail flows, customer loyalty, and the origin of customers who are spending in Palmerston North. The electronic card spending report for the city is included as Appendix 2.

1.5 The memorandum concludes with a summary of the economic outlook for the city and the wider New Zealand economy.

2. Quarterly economic Update

2.1 Infometrics reports that Palmerston North GDP fell by -0.8% over the year to June 2024 as the New Zealand economy hit the bottom of the economic cycle. This compares with a -0.2% contraction in GDP nationally. Statistics New Zealand GDP data for the June quarter 2024 is not released until 19 September.

2.2 Annual inflation (as measured by the Consumer Price Index) eased to 3.3% in the June quarter as the economy continued to contract in response to higher interest rates and a further pullback in spending across the economy. Inflation is heading in the right direction, with the Reserve Bank of New Zealand (RBNZ) stating that inflation is likely to have fallen back within range in the September quarter. This is positive, as banks move to reduce interest rates to households and businesses. Six-month mortgage rates have fallen to 6.85% at the time of writing, with two-year rates falling below 6.0%.

2.3 In response to falling inflationary pressures and weaker economic activity than anticipated, the RBNZ dropped the Official Cash Rate (OCR) by 25 basis points to 5.25% in the August 24 Monetary Policy review. This follows a policy rate of 5.5% in place since May 2023. The OCR is now forecast to fall sooner than indicated at the release of the May Monetary Policy Statement (MPS). Figure 1 illustrates the difference in the OCR track between the RBNZ’s May and August Monetary Policy Statements.

2.4 Figure 1: RBNZ OCR projections – Aug MPS vs May MPS

2.5 While headline inflation is forecast to have fallen back into the RBNZ 1%-3% range in the September quarter, electricity costs have risen sharply due to low lake levels and disrupted gas supplies. To date, commercial consumers have taken the brunt of these higher costs with electricity prices rising 9.7% overall over the year. Limited gas supplies have been a dominant driver of these higher energy costs with gas prices to the commercial sector increasing 22.4% over the year, curtailing production in some cases due to elevated production costs.

2.6 Household energy costs have been less affected but have still increased by +4.0% over the year to June 2024. To put this in context, household electricity costs increased by 3.5% while household gas prices increased by 8.5% over the year. While the RBNZ is likely to look through any increases in costs driven by the current energy supply shortage, price stability in energy markets is central to the competitiveness of the productive sector. Stable prices will also reduce pressure on household budgets to support recovery of the New Zealand economy.

2.7 The New Zealand population is estimated by Statistics NZ to have grown by 1.8% over the year to June 2024, with growth slowing to just 0.1% in the June quarter 2024. While annual population growth remains elevated, the more recent slowdown in population growth is explained by a decline in net international migration to 73,300 over the June 2024 year. This is down from the record high of 136,600 posted over the year to October 2023. While easing relative to recent highs, current net international migration remains well above the long-term trend.

2.8 The first set of Estimated Resident Population figures for the city based on the 2023 Census have not yet been released, however secondary data implies that the population of the city continues to grow. Primary health enrolments in Palmerston North increased by +1,625 over the year to August 2024 (+2.1%).

2.9 This implied population growth, alongside the current contraction in annual GDP, indicates falling GDP per capita in Palmerston North and across much of New Zealand. GDP per capita figures will be updated post the release of the Estimated Resident Population data series due in October 2024.

Business and jobs

2.10 There were 8,184 businesses in Palmerston North in June 2024; an increase of 121 businesses from the previous year. This is an increase of +1.5% over the year, compared with +1.9% growth in business counts, nationally.

2.11 Non-residential consents totalled $104.4m in the city over the year to July 2024. This is a decrease in value of -45.9% compared with the July year 2023 and compared with a decrease of -12.1% nationally. This negative growth follows a record breaking level of non-residential construction investment in 2023. Specifically, non-residential consents totalled $192.0m in the July year 2023, with construction of health and education buildings hitting record values of $40.6m and $81.7m respectively. More positively, construction of factories, and industrial and storage buildings increased by 55.4% over the year to July 2024, reaching a total of $51.8m.

2.12 The findings of the Seek Employment report for July 2024 are mixed. The Manawatū Region continues to see an annual decrease in jobs advertised, down -29% compared with the year ended July 2023. In contrast, job advertisements in the Region increased +10% from June to July, implying some strengthening in employment intentions. Nationally, advertised jobs fell -29% over the year, with a monthly increase of +3% between June and July 2024. More broadly, the employment report indicates an increase in advertised jobs for construction workers (+14%) and consumer service workers (+10%) in regional areas in July 2024, compared with June 2024. Indicators that reflect changing employment intentions will be monitored and reported on through the quarterly reporting series.

2.13 At the time of writing, filled jobs and earnings data for the June quarter are not available. The latest data to the year ended March 2024 indicates that filled jobs by workplace address decreased by -3.0% to a total of 45,619 over the year with jobs by place of residence up by 1.0% to 35,518. This compares with +2.0% growth, nationally. The impacts of the economic slowdown on employment and earnings levels in the city is an important indication of economic wellbeing.

2.14 The annual average unemployment rate published by Infometrics remained at 4.5% in the city in the June quarter 2024. This compares with an annual average unemployment rate of 4.2% nationally. In contrast, quarterly unemployment rate figures from Infometrics cite an unemployment rate of 4.4% in Palmerston North in the June quarter, compared to 4.5% unemployment nationally. The national unemployment rate for the June quarter compares with the Statistics NZ national unemployment rate of 4.6%.

2.15 The number of MSD jobseeker beneficiaries in Palmerston North increased by 321 over the year to June, to a total of 3,180. This is an +11.3% increase on the previous year, compared with a +13.5% increase, nationally. Of this increase, 192 people were receiving the benefit due to health conditions and disability.

2.16 The number of people receiving the Jobseeker benefit increased across all age groups in Palmerston North and nationally over the year to June 2024. Jobseeker beneficiaries aged between 18-24 years increased by 93 in the city (+13.7%), compared with an increase of 12.8% nationally. The number of Jobseekers beneficiaries aged 25-39 increased by 87 (+8.8%) compared with a +9.6% increase nationally, while recipients aged 40-54 years and 55-64 years each increased by 69 in the city over the June 2024 year (+9.2% 40-54 years; +15.8% 55-64 years). This compares with an annual increase of +9.6% in Jobseeker recipients aged 40-55 years and an +8.0% increase in Jobseeker benefit recipients aged 55-64 years, nationally.

Earnings and income

2.17 Earnings data for the city for the June 2024 quarter will be released 10 September. Latest earnings data for the city for the March quarter indicated strong earnings growth with annual earnings up +9.3% over the March 2024 year. This compares with an +8.6% increase nationally. As explained in section 2.19, we expect the rate of earnings growth to have started to ease over the later part of the June 2024 year. However, the flow through of wage agreements to pay packets, and the lingering impacts of wage pressure from 2023, are expected to have continued to boost overall earnings in the city and nationally over the June 2024 year.

2.18 The elevated wage growth of the 2022/23 financial year is reflected in the Statistics NZ median salary and wages data, with median earnings in the city increasing by +7.0% over the year to a total of $65,000. This compares with a +6.9% increase nationally to reach a median salary of $66,770. Growth in earnings, both in the city and nationally, continued to reflect the elevated wage inflation that prevailed over the period due to tight labour market conditions and strong demand, alongside large scale sector wage agreements settled in 2022 and 2023.

2.19 Early indications of easing wage growth are reflected in the Quarterly Economic Survey (QES) for ordinary time hourly earnings, and the Labour Cost Index (LCI) for the June 2024 year. These measures of wage growth indicate that ordinary time hourly earnings increased by +5.0% over the June 2024 year, compared with a +6.9% increase the previous year. According to the LCI, wage growth was particularly strong in the ‘health care and social assistance’ sector (+8.1%) and the ‘education and training’ sector (+7.8%) as pay agreements rolled through into salaries. Further easing of wage growth is expected in 2024 and into 2025.

Spending

2.20 Retail spending increased by +0.4% in the city over the year to July 2024, to a total of $1,500m ($1.5b). This compares with a +1.7% increase in retail spending nationally. Retail spending is in dollar value and does not account for the impact of inflation on the purchasing power of consumers.

2.21 As discussed earlier in this report, the annual rate of inflation over the year to June 2024 was 3.3% with an increase in average household living costs of 5.4% over the year. The annual rate of growth in living costs is slowing from previous highs, however annual retail spending versus the rate of inflation continues to reflect negative real growth in spending over the year.

2.22 The pressure on household budgets is further reflected in the decrease in spending on discretionary items. ‘Home and recreational retail’ spending in the city fell by -8.4% over the year to July 2024, with spending on ‘Arts, recreation and visitor transport’ down -5.2% over the same period.

2.23 New car registrations in Palmerston North fell by -6.2% over the year to June 2024 compared with an -11.7% decrease nationally. The number of new commercial vehicle registrations also fell over the year, down -13.5% in the city versus the previous year. This compares with a decrease of -21.5% nationally.

2.24 Tourism spending in the city has been impacted by a pullback in spending by domestic travellers. According to the Tourism Electronic Card Transactions (TECT) series, domestic tourism spending in Palmerston North fell -2.5% over the year to June 2024 to a total of $276.7m. This compares with a -2.8% fall nationally. In contrast, local international tourism spending was up from the previous year, increasing by +15.8% to $26.6m. This compares with a +16.6% increase in international tourism spending, nationally.

2.25 The annual change in guest nights is also a useful indicator of tourism activity in the city and across the country. Over the year to July 2024, guest nights in the city decreased by -8.5% to a total of 422,000. This compares with a +4.0% Increase, nationally. Reflecting the downturn in domestic tourism, guest nights from domestic travellers fell by -12.3% in Palmerston North over the same period, compared with a -4.4% decrease nationally. In contrast, guest nights from international travellers increased +11.3% in the city over the year, compared with a +25.3% increase, nationally.

Housing

2.26 Corelogic has introduced a new house price index referred to as the Hedonic Home Value Index (HPVI). According to the HPVI, the median value of houses in the city increased by +2.5% over the year to July 2024. This compares with a +2.9% increase nationally, over the same period. The HPVI indicates that house prices in Palmerston North have fallen -17.1% from their 2022 post-COVID peak. This compares with a -15.8% fall, nationally. A limited set of data is currently available from the HPVI. As more detailed information becomes available, this will be included in the quarterly economic update for the city,

2.27 Mortgage lending increased to $6.7 billion in the July month 2024, compared with $5.0 billion in July 2023. This represents a 33.1% increase in monthly lending versus July 2023. Mortgage lending to owner-occupiers and investors increased the most, up $932m (+32.8%) and $512m (+60.0%) respectively. Lending to first home buyers lifted by $177m (+14.3%) over the same period, while mortgage lending for business purposes was up $32.0m (+50.0%). While it is early days in terms of the housing market, easing financial conditions and improved affordability due to lower house prices are expected to boost investment in the housing market.

2.28 Mortgage lending to investors increased to 20.5% of total lending in July 2024, up from 15.4% in January 2023. This compares with a 10-year average of 22.3%. Investor lending is generally expected to strengthen in response to the restoration of interest deductibility as well as pent-up demand for new housing driven by population growth and improving financial conditions.

2.29 Home ownership remains more affordable in Palmerston North than many other parts of the county, with the average house price equal to 5.1 times the average income in March 2024. This compares with the average house price of 6.9 times the average income, nationally.

2.30 Rental price increases continue to exceed CPI, with prices in the city rising +5.7% to $486 per week over the year to June 2024. This compares with a +6.4% increase nationally to $568. Over the same period, the number of properties rented increased by +2.4% in Palmerston North, compared with a +3.4% increase nationally. As at June 2024, 8,067 homes were rented in the city.

2.31 Renting a home in Palmerston North remains more affordable than in much of New Zealand, with annual average rent making up 19.8% of annual household income, compared with 22.1% nationally. Renting in the city is more affordable than both the Manawatū District and the wider Manawatū-Whanganui region, with average annual rent taking up 21.2% and 21.7% of the average household income, respectively.

2.32 The number of households on the public housing register in Palmerston North fell by -81 (-12.9%) over the year to June 2024. This compares with a -7.3% fall nationally. Anecdotally, some of the decrease in the number of families on the register may be explained by the increased level of evidence required to prove housing need, as well as a change in prioritisation to families with children.

2.33 There were 408 consents for new dwellings issued in Palmerston North over the year to July 2024, down -8.5% compared with the previous year. This compares with a -22.0% decline in new dwelling consents nationally. The decrease in planned residential construction has been driven by unsupportive financial conditions, high development costs, and weak capital gains. A pullback in central government investment in residential development is also weighing on levels of residential development. Improving financial market conditions, alongside the recovery of broader economic conditions, are expected to support levels of residential investment.

2.34 Data for the 2023 calendar year estimates that a total of 314 of the 424 dwellings consented over the year will add to the housing stock of Palmerston North (74.1%). This data series is being developed manually, with the purpose of providing greater detail about additions to the total dwelling stock in the city. This series removes ‘relocates’ moved outside the city, adds in ‘relocates’ coming into the city from other parts of New Zealand, and removes ‘uplifts of dwellings’. Officers are currently preparing quarterly estimates of net dwellings. This data will be included in future quarterly updates for the city,

3. Palmerston North electronic card spending report – June 2024

3.1 Total electronic card spending fell by -0.3% in the June quarter 2024 to a total value of $366.0m. This compares with a +0.3% increase in spending nationally. This growth in spending is below the 3.3% rate of annual inflation, indicating negative real growth.

3.2 Over the year to June 2024, electronic card spending in Palmerston North reached $1.501 billion, an increase of +0.6% from the previous year. This compares with a +2.0% increase nationally over the same period. Of this total, 56.0% continues to be spent in the city centre.

3.3 Spending in the city centre increased by +0.7% over the year. Discretionary spending was most affected by the pullback in consumer demand with ‘Home & recreational retail’ spending down -10.4% and ‘Arts, recreation & visitor transport’ spending falling -5.0% over the year. This trend continues to be consistent with electronic card spending data for many parts of the country, where spending on non-essential goods and services has come under pressure from the continuation of elevated household costs and uncertainty around wider economic conditions.

3.4 Spending on essential items continues to increase as households and businesses reduce spending on discretionary expenditure. Spending on ‘groceries and liquor’ was the highest growth sector in Palmerston North, up +6.6% compared with the previous year. The trend for grocery spending was similar for the city centre and New Zealand, up by +8.5% and +7.1% respectively over the year.

3.5 Spending on ‘cafes, restaurants, and bars’ fell below the rate of inflation over the June year, increasing by 1.7% in the city compared with annual inflation of 3.3%. The trend was similar in the central city and across New Zealand, rising by 2.8% and 2.5% respectively. This pullback in discretionary spending is expected as the New Zealand economy emerges from economic recession.

3.6 ‘Other consumer spending’ increased for a second consecutive quarter in Palmerston North, up 14.9% compared to the June 2023 year. This growth was stronger in the city centre, rising 67.1% over the year compared with national growth of 4.7%. It is worth noting that ‘other consumer spending’ makes up just 0.1% of total spending, with the highest spending categories being ‘groceries and liquor’ (33.1%) and ‘home and recreational retail’ (30.3%).

3.7 Palmerston North consumers remain relatively loyal to local merchants. The loyalty rate, explained as the percentage of spending by Palmerston North residents at local retailers, was 81.5% over the year to June 2024. This compares with 81.3% over the year to June 2023.

3.8 The annual inflation rate to June 2024 was 3.3%, indicating a real decline in spending across retail precincts in the city except for the Palmerston North City Centre and Terrace End. Over the year, spending in the City Centre and Terrace End precinct increased by 3.4%, marginally exceeding the annual rate of inflation.

3.9 The Quarterly Economic Card Spending Report for June 2024 is attached as Appendix 2.

4. Economic outlook

4.1 Short term challenges persist in 2024. The longer term outlook is growing more positive, however, as the economic fundamentals of the city and the region continue to boost resilience, inflation tracks lower, and interest rates look set to fall for the remainder of 2024 and into 2025.

4.2 Retail interest rates are tracking downwards in response to an improved OCR track, signalling an easing of cost pressures for businesses and households. While this is positive, the impact of higher interest rates will take time to unwind as fixed interest rates continue to weigh on disposable incomes, global growth remains weak, net migration into the country slows, and lower government spending further subdues demand across the economy. As a result, GDP growth is forecast to remain weak with the RBNZ projecting annual growth of -0.4% over the 2024 calendar year. Next year presents a more positive scenario with annual GDP growth projected to rise to 3.3% in 2025.

4.3 While challenges remain, there is much to be positive about, as reflected in the latest ANZ Business Outlook Survey. The August 2024 survey found that business confidence has soared to the highest level in a decade, lifting 23 points to +51 in August with firms’ expected own activity jumping to a seven-year high of +37. Expectations of price increases were also weak, lessening any concerns of inflationary pressure. As indicated in the survey, the positive result is coming off a period of very weak activity, therefore, while the expectation of an improvement in conditions is positive, these expectations are expected to take time to cycle through to actual economic activity.

4.4 The sharp deterioration of the New Zealand economy, beyond the expectation of the RBNZ over the 2024 winter, has led to the expectation of earlier and deeper interest rate cuts than previously signalled. Higher interest rate cuts at pace will boost economic activity as the RBNZ works to stimulate demand to match supply capacity across the New Zealand economy. The economic outlook has turned a corner.

5. Compliance and administration

Does the Committee have delegated authority to decide?		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 objectives?		Yes
Are the recommendations inconsistent with any of Council’s policies or plans?		No
The recommendations contribute to: Whāinga 1: He tāone auaha, he tāone tiputipu Goal 1: An innovative and growing city
The recommendations contribute to the achievement of objective/objectives in: 2. Mahere whakawhanake ohaoha 2. Economic Development Plan
Contribution to strategic direction and to social, economic, environmental and cultural well-being

Attachments

1.	Palmerston North Economic Growth Indicators (as at September 2024) ⇩
2.	Palmerston North Quarterly Economic Card Spending Report - June 2024 ⇩

Memorandum

TO: Economic Growth Committee

MEETING DATE: 20 November 2024

TITLE: Road Maintenance Contract - 6 Monthly Update

Presented By: Glen O'Connor, Manager - Transport and Development

APPROVED BY: Chris Dyhrberg, General Manager Infrastructure

RECOMMENDATION TO Economic Growth Committee:

1. That the Committee receive the memorandum titled ‘Road Maintenance Contract - 6 Monthly Update’ presented to the Economic Growth Committee on 20 November 2024.

This Report was deferred from the Committee meeting on 18 September 2024

1. ISSUE

1.1 In March 2022, the report titled ‘Road maintenance Contract Update’ was presented to the Infrastructure Committee. In this meeting the Committee resolved:

“to receive further six-monthly reports on the work programme and performance of the road maintenance contract.”

1.2 This report provides the latest update on the work programme and performance of the road maintenance contract, using information up to the end of October 2024.

2. BACKGROUND

Road Maintenance Contract

2.1 Council entered Contract 3938 Road Maintenance, Renewal, and Capital Improvement Services (Road Maintenance Contract) with Fulton Hogan in March 2021. The contract commenced on 1 July 2021 with an initial term of three (3) years, with two (2) right of renewals for three (3) years each.

2.2 In May 2024, Council approved entering the first three-year renewal term of the Contract with Fulton Hogan from 1 July 2024 through to 30 June 2027. As part of this process, Council renewed the street lighting and street sweeping components of this contract for an initial one-year term. Further renewals of these two contract components will be contingent on Fulton Hogan meeting key performance indicators around these services. Officers are now in the bedding down of this extension period.

Contract Works

2.3 Works delivered by the road maintenance contract can be split into operations/maintenance and renewals/capital spend areas, with each funding area having key deliverable areas.

Operations and Maintenance include:

· Footpaths

· Pavement

· Drainage

· Traffic Services i.e. signals, street lighting, sweeping etc.

Renewals and capital include:

· Pavement reseals

· Pavement rehabilitations/ replacements

· Drainage

· Footpaths

· Structural – i.e. bridges etc.

3. ROAD MAINTENANCE CONTRACT six MONTHLY UPDATE as at October 2024

3.1 Below is an update on the contract deliverable areas as listed above.

3.2 NZ Transport Agency Waka Kotahi (NZTA) typically funds approximately 51% of Council’s land transport programme. Council received confirmation from NZTA of their total funding share in early September 2024 for the 1 July 2024 to 30 June 2027 period, and at the time of writing this report the ramifications of these funding levels are still being worked through. The Road Maintenance Contract scope of works will be adjusted to fit the available funding and subsequent levels of service required by Council. Due to this funding uncertainty, it has not been possible to confirm the exact scope of some work programmes delivered under the Road Maintenance Contract.

Operations and Maintenance Work

3.3 Footpaths

· The city-wide footpath maintenance work programme for 2023/24 was complete and the budget has been fully expended. The 2024/25 footpath maintenance works will be dependent on available budgets.

3.4 Pavement

· The programme of work for pre reseal repairs (i.e. potholes, pavement defect repairs etc.) and other reactive maintenance work to the city’s road pavement was completed for 2023/24.

3.5 Drainage

Road Sweeping and Sump Clearing

· The kerb sweeping and sump cleaning was completed in the 2023/24 year, noting that the budget allocation in 2023/24 was not sufficient to meet the desired level of service. As a result, the service was completed on a reactive basis.

· The budget for this area has been increased in the 2024/34 Long-term Plan to gain an improved level of service. The 2024/25 street sweeping programme is being finalised, as it is dependent on funding levels.

· It should be noted that the sweeping services delivered by Council’s contractor, as with many other components of this contract, are paid for on a measure and value basis. In short, Council contractors get paid for each kilometre of road swept. A yearly/monthly programme of kilometres/streets to be swept is established, based on available budget. Council’s contract does not have a lump sum price from our contractors for sweeping where they, for instance, remove all leaf fall within a specific time period, or to a specified standard. Council’s contractors get paid, once Officers have established that this sweeping work has been completed to the required standard, for the kilometres that they sweep.

· In the period from July to October 2024, Officers undertook fortnightly audits of completed sweeping areas. No substantive quality issues were observed, nor was any rework required.

3.6 Traffic Services

Road Marking

· Minimal road marking was undertaken throughout the city for 2023/24 and the available budget was fully expended. There was a focus on Stop/Give-ways and pedestrian markings only due to this limited budget. The programme for 2024/25 works will be dependent on available budget.

Streetlights

· The initial night survey of our city to inspect the functioning of individual streetlights was undertaken in July 2024. This audit indicated that, at the time of this survey, our cities streetlight network is 97% lit, thus compliant with the applicable AUS/NZ Standard. Specifically, the audit detailed that there were 235 lights out on the network.

· Council received 400 new street light luminaires in July 2024 and an additional stock of 300 new luminaires is due to arrive in November 2024.

· A further quarterly streetlight night audit was undertaken in October 2024. The results of the July and October 2024 quarterly audits are consolidated on the table below:

Quarterly night audit	Number of faults (including network faults)	Faults repaired	Outstanding faults	Luminaire stock levels	% of the network lit
Jul-24	235	220	15 of these outstanding at end of October	93 as at end of October	97%
Oct-24	146	On going	146 Outstanding faults	360 estimated mid-November	98%

· Once the ongoing luminaire failure rate, established through streetlight night surveys over the next 12 months or so is confirmed, officers will be able to identify the required number of replacement luminaires that need to be held in stock.

Powerco

Officers are meeting with Powerco (the network power supplier for our streetlights), regularly to discuss how improvements and efficiencies can be achieved across the multiple parties involved with the streetlighting assets. This includes how a quicker resolution to network faults can be achieved.

· These faults included a variety of repairs from fuse replacements to extensive traffic management, excavations and repairs of cables and poles. Some of these faults can be intermittent and only become apparent during certain wet or windy conditions, for instance.

· Faults between 1 July 2024 and 30 September 2024 were resolved within the following timeframes (with the 12-month period from 1 July 2023 to 30 June 2024 for comparison):

· Officers continue to work with all parties involved in this process to tighten up the resolution and reporting timelines.

Capital Works

3.7 Pavement Reseals

· The 2023/24 resurfacing programme of more than 30 streets was completed, with some minor loose chip removal continuing as these chip sealed surfaces bed in.

· The 2024/25 resurfacing works commenced in late October 2024.

3.8 Pavement Rehab

· Sections of Railway Road, between Tremaine Avenue and the rail overbridge, required a complete pavement rehabilitation, due to weak underlying soils, poor subgrade and extensive heavy vehicle traffic. The total cost of this work is around $4M, and as such it was delivered in stages. The first stage of this rehabilitation was completed in May 2024, and the second stage in October 2024.

3.9 Drainage

· The kerb and channel replacement in Jasper Place was completed in March 2024. The work programme for 2024/25 will be budget dependent.

3.10 Bridges and Culverts

· Concrete lining of the Highbury Avenue bridge culvert was completed to future proof this culvert.

· Amberley Avenue culvert replacement continues, with this work programmed for completion in mid-2025.

3.11 Footpaths

· This programme of renewal work for footpaths throughout the city was completed by 30 June 2024. The extent of the 2024-2025 footpath programme will be confirmed when available funding is confirmed.

4. NEXT STEPS

4.1 Continue to work with Fulton Hogan to ensure delivery of the programme of works covered by this contract.

4.2 Continue to prioritise works with most impact as required to ensure the programme is delivered within required timeframes and budget provisions.

4.3 Officers currently report six-monthly to this Committee on the performance and operation of the Road Maintenance Contract. Officers could increase the frequency of these reports to quarterly, should the Committee find value in this increased frequency of reports.

5. Compliance and administration

Does the Committee have delegated authority to decide?		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?		Yes
Are the recommendations inconsistent with any of Council’s policies or plans?		No
The recommendations contribute to: Whāinga 1: He tāone auaha, he tāone tiputipu Goal 1: An innovative and growing city
The recommendations contribute to the achievement of objective/objectives in: 3. Mahere tūnuku 3. Transport Plan The objective is: Develop, maintain, operate, and renew the active and public transport network to deliver on Council goals, the purpose of this plan, and the Government Policy Statement on Transport.
Contribution to strategic direction and to social, economic, environmental, and cultural well-being	The road maintenance contract is a key delivery vehicle towards having safer, well maintained, and well utilised transport network.

Attachments

NIL

Memorandum

TO: Economic Growth Committee

MEETING DATE: 20 November 2024

TITLE: Palmerston North Airport Limited - Annual report for 12 months ended 30 June 2024 & Instructions relating to Annual Meeting

Presented By: Steve Paterson, Manager - Financial Strategy

APPROVED BY: Cameron McKay, General Manager Corporate Services

RECOMMENDATIONS TO ECONOMIC GROWTH COMMITTEE

1. That the Committee receive the Annual Report and Financial Statements of Palmerston North Airport Limited for the year ended 30 June 2024, presented to the Economic Growth Committee on 20 November 2024.

RECOMMENDATIONS TO COUNCIL

2. That the Council shareholder representative be instructed to support the proposed resolutions to be considered at the Annual meeting of Palmerston North Airport Limited to be conducted by way of resolution in writing.

1. ISSUE

1.1 Palmerston North Airport Ltd (PNAL) as a Council controlled trading organisation has prepared its Annual Report for the year ended 30 June 2024. This report provides a brief commentary on PNAL’s results for the year and recommends the Council’s shareholder representative be instructed to support the resolutions proposed for the Annual Meeting.

1.2 Company representatives will be available at the meeting to respond to any questions.

2. BACKGROUND

2.1 PNAL’s Annual Report for the year ended 30 June 2024 is attached. The report gives a comprehensive assessment of company performance with key matters highlighted in the joint report of the Chair and Chief Executive. Performance is evaluated against the Statement of Intent agreed by the Council in June 2023.

2.2 PNAL’s interim report to 31 December 2023 was considered during April 2024. That report outlined PNAL had met its key performance targets for the 6 months apart from passenger numbers, which although higher than the previous year, were below the SOI expectation. Caution was expressed about the prospects for the rest of the year given market changes.

2.3 Operating results for the year are summarised in the following table:

Table 1 Operating Results

Actual 2021/22	Actual 2022/23		Actual 2023/24	Budget 2023/24 SOI
9,485,265	12,585,130	Revenue	15,487,238	14,188,600
6,427,698	6,482,263	Operating Expenditure (incl. PFAS related extra-ordinary items)	7,946,586	8,377,011
3,057,567	6,102,867	Operating Surplus (before interest, depreciation & tax)	7,540,652	5,811,589
1,804,457 533,993 4,545 0	2,173,143 594,399 (261,348) 0	Depreciation Finance Costs Loss (gain on sale of assets Assets vested to Council	2,192,583 523,481 349,303 5,046,062	2,021,713 1,104,141 0 0
545,772	415,741	Revaluation (loss)/gain – Investment properties	(70,500)	0
1,260,344	4,012,414	Operating Surplus (before tax)	(641,277)	2,685,735
(119,158)	1,061,993	Taxation	1,617,739	752,006
1,379,502	2,950,421	Net Surplus/(deficit) after tax for year	(2,259,016)	1,933,729

2.4 A selection of PNAL’s results, compared with the targets set in the Statement of Intent are shown in the following table:

Table 2 – Results compared with targets set in Statement of Intent

Actual 2022/23		Actual 2023/24	SOI Target
6.0%	Surplus, before interest/tax/depreciation/ revaluations to Total Assets	7%	4%
3.5%	Surplus, after interest/tax/revaluations to Shareholders’ funds	-2.8%	2%
10.3	Surplus, before interest & tax to Interest ≥ 2.5: 1	14.4	5.3
$84.3m	Tangible net worth (total tangible assets minus total liabilities) ≥ $80m	$82.1m	$87.7m
79%	Ratio of consolidated shareholders’ funds to total assets ≥ 40%	78%	67%
	Total Debt	$10.7m	$29.3m
	Debt to Equity ratio	13%	33%
	Net Debt*/EBITDA (<4.5)	1.3	5.0
	Funds from Operations (FFO**)/Net Debt (long term target > 11%)	57%	13.5%
45	Maintain a Net Promotor score of 45 or above, measured on an annual basis	45	45
534,651	No. of passengers served through airport terminal	547,721	581,100
One day lost to injury	Achieve zero lost time injuries to those who work within our airport community	Zero	Zero
Maintained	Maintain Civil Aviation Rule part 139 certification	Maintained	Maintain
Underway	Achieve Airport Carbon Accreditation level 4	Achieved	Achieve

*Net Debt equals total borrowings less cash on hand

**FFO equals EBITDA (earnings before interest, tax, depreciation & amortisation) less interest cash

More detailed analysis of performance for each of PNAL’s five key strategic objectives can be found on pages 19-22 of the Annual Report.

2.5 The Company applied $4.7m during the period to the purchase of fixed assets ($2.0m in the previous year). This compares with the budgetary provision for capital expenditure of $24.6m.

2.6 The Annual Report advises that a dividend of $195k is planned. This is consistent with the expectations contained in the Statement of Intent.

2.7 The Company’s ratio of shareholders’ funds to total assets as at 30 June 2024 was 78:22 (79:21 at 30 June 2023).

Annual Meeting of Shareholders

2.8 The Company must hold an Annual Meeting of shareholders within six months of its balance date i.e. no later than 31 December 2024. As the Council is the sole shareholder it is planned (as usual) to hold the Annual Meeting by way of entry in the minute book rather than to hold a physical meeting.

2.9 The Annual Meeting (by way of entry in the minute book) will have resolutions (as attached) covering the following:

2.9.1 Receipt of the Annual Report and financial statements for the year ended 30 June 2024

2.9.2 Advice the directors propose that a dividend of $195k be payable for the year ended 30 June 2024

2.9.3 Approving the total remuneration of directors being $153,300 for five directors

2.9.4 Recording the reappointment of the Auditor General as auditor and to authorise the directors to fix the remuneration of the auditors.

Directors’ Fees

2.10 In December 2023 the Council agreed that total remuneration for the directors for five directors would be $146,000 for 2023/24 year.

2.11 In April 2024 Council approved an amendment to the Appointment of Directors Policy that says the remuneration of CCO board members will be adjusted annually by the Labour Cost Index (December quarter).

2.12 The index for the December quarter was 5% and applying this brings the directors’ fees for the year to $153,300.

3. NEXT STEPS

3.1 PNAL’s Annual Report will be published on the Company’s and Council’s websites.

3.2 In June 2024 the Economic Growth Committee agreed to PNAL’s Statement of Intent for 2024/25. The next update on performance will be in the interim report for the period to 31 December 2024 that will be provided early in 2025.

3.3 A Statement of Expectations setting out Council’s expectations of PNAL for the 2025/26-2027/28 period will be reported in a separate report to the Committee. This will inform PNAL’s draft Statement of Intent for 2025/26 which is due by the end of February 2025.

4. Compliance and administration

Does the Committee have delegated authority to decide?		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?		Yes
Are the recommendations inconsistent with any of Council’s policies or plans?		No
The recommendations contribute to: Whāinga 1: He tāone auaha, he tāone tiputipu Goal 1: An innovative and growing city
The recommendations contribute to the achievement of objective/objectives in: 2. Mahere whakawhanake ohaoha 2. Economic Development Plan The objective is: operating a key gateway for people and freight to and from the city and the wider region; grow passenger numbers and freight using the airport
Contribution to strategic direction and to social, economic, environmental and cultural well-being	PNAL is playing an active part in growing the City.

Attachments

1.	2024 Annual Meeting ⇩
2.	PNAL Annual Report 2024 ⇩

Memorandum

TO: Economic Growth Committee

MEETING DATE: 20 November 2024

TITLE: Central Economic Development Agency (CEDA) Annual Report 2023-24

Presented By: David Murphy, General Manager Strategic Planning

APPROVED BY: David Murphy, General Manager Strategic Planning

RECOMMENDATION(S) TO Economic Growth Committee

1. That the Committee receive the Central Economic Development Agency (CEDA) Annual Report 2023-34 (Attachment 1)

1. ISSUE

1.1 Central Economic Development Agency (CEDA) has submitted its Annual Report 2023-24, which is included as attachment 1. This memorandum provides an opportunity for Elected Members to review the progress CEDA has made against its Statement of Intent during the period 1 July 2023 to 30 June 2024.

1.2 Representatives of CEDA will be in attendance to present the Annual Report and answer questions.

2. BACKGROUND

2.1 CEDA is a Council Controlled Organisation (CCO) and is jointly owned by Palmerston North City Council (PNCC) and Manawatū District Council (MDC).

2.2 For the 2023/24 year, PNCC and MDC as joint shareholders expected CEDA to focus on the delivery of the following core functions and outcomes in:

- Stimulate inward investment (both national and international), retention and expansion of business in the Manawatū region, along with business recovery to COVID-19.

- Developing a talent pipeline

- Support Domestic Visitation and tourism recovery post COVID-19.

2.3 The 2023/24 Statement of Expectations also asked CEDA to focus on strategic relationships and included a list of top priorities for both councils, including a specific joint priority to develop a food strategy. Top priorities for PNCC were:

· Implementation of the Central NZ Distribution Hub Strategy.

· Support advocacy on the Palmerston North Integrated Transport Investment project.

· Stimulate inward investment in Palmerston North city.

· Continue to stimulate visitor activity in Palmerston North city, in conjunction with the PNCC marketing unit and MDC

2.4 In 2023/24, PNCC granted CEDA $1,959,528 to deliver the core functions listed in 2.3 above. MDC contributed $675,326.

2.5 The Local Government Act (LGA) requires CCOs to produce an annual report which compares its actual and intended performance (as set out in the Statement of Intent) and audited financial statements.

3. PERFORMANCE FOR THE YEAR JULY 2023 - JUNE 2024

3.1 Like previous years, CEDA’s response to the Statement of Expectations is based around four strategic objectives:

- Business: Attract, retain and develop business and investment in the region.

- People: Attract, retain and develop talent in the region.

- Place: Profile the region to attract people, business and investment.

- Partners: Lead inclusive and sustainable economic development for the region.

3.2 The Chairperson and Chief Executive introductory reports within the Annual Report highlight:

- The cooling of the economy.

- The long-term outlook remains positive.

- The diversity of the Manawatū economy

- The primary focus remains on identifying and nurturing inward investment opportunities for the region

- The strategic importance of Te Utanganui

- Launching the Manawatū Regional Food Strategy.

3.3 Highlights from the year are detailed on page 9 of the Annual Report. Key highlights include:

- Te Utanganui Central NZ Distribution Hub programme director appointed

- 8 Te Utanganui inward investment opportunities identified

- Interactive map of regional crop opportunities developed

- E Tipu: Boma Agri Summit delivered

- 621 business engagements completed.

- 51 media features profiling the region with a combined reach of 148 million

- $192,842 in capability development support issued.

- 2 hotel investment opportunities identified

- 283,847 sessions on ManawatuNZ.co.nz

- +67 net promoter score (regional business partner programme)

- 26 new content pieces curated

- 4 sector case studies developed to promote business in the region

- Manawatū Regional Food Strategy completed and launched.

- $1,239,132 in Callaghan Innovation Research and Development grants issued.

- Inaugural Manawatū Garden Festival held.

- 1.37M digital impression achieved through the talent attraction campaign.

3.5 A narrative summary of CEDA’s work on each of the strategic objectives is detailed at pages 11-14 (Business), 15-16 (People), 17-20 (Place) and 21-24 (Partners) of the Annual Report.

3.6 A more specific assessment of CEDA’s service performance for each of the strategic objectives is detailed on pages 29 – 37 of the Annual Report.

3.7 The regions performance against a series of quantitative monitoring indicators is detailed at page 38 of the Annual Report. While a number are awaiting up to-date data, the results reflect the cooler economy identified in the introductory reports from the CEDA Chairperson and Chief Executive.

4. FINANCIAL PERFORMANCE FOR THE YEAR JULY 2022- JUNE 2023

4.1 CEDA’s financial performance is detailed at pages 45-63 of the Annual Report.

4.2 CEDA finished the 2023-24 year with a $44,651 surplus against a budgeted $78,610 deficit.

4.3 CEDA finished the 2023-24 year with total equity of $629,730 against a budget of $664,445.

4.4 The 2022-23 Annual Report includes an independent auditors report at page 62.

5. NEXT STEPS

5.1 CEDA to prepare a Statement of Intent for 2025/26.

6. Compliance and administration

Does the Committee have delegated authority to decide? If Yes quote relevant clause(s) from Delegations Manual		No
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 objectives?		Yes
Are the recommendations inconsistent with any of Council’s policies or plans?		No
The recommendations contribute to: Whāinga 1: He tāone auaha, he tāone tiputipu Goal 1: An innovative and growing city
The recommendations contribute to the achievement of objective/objectives in: 2. Mahere whakawhanake ohaoha 2. Economic Development Plan The objective is: The community benefits from the sound management of Council’s strategic investments. Advocacy by Council, CEDA, and regional partners attracts inward investment to the city.
Contribution to strategic direction and to social, economic, environmental and cultural well-being	Our city’s economic wellbeing depends on opportunities to improve our standard of living and reduce economic disadvantage. A profitable business sector, knowledge and skills, work, health, environmental amenity, and housing, all contribute to living standards.

Attachments

CEDA Annual Report 2023-24 ⇩

Memorandum

TO: Economic Growth Committee

MEETING DATE: 20 November 2024

TITLE: Featherston Street Safety Improvements Project Update

Presented By: Glen O'Connor, Manager Transport and Development and Michael Bridge, Service Manager Active Transport

APPROVED BY: Chris Dyhrberg, General Manager Infrastructure

RECOMMENDATION TO Economic Growth Committee:

1. That the Committee receive the memorandum titled ‘Featherston Street Safety Improvements Project Update’ dated 20 November 2024.

1. ISSUE

1.1 At the 5 June 2024 Council meeting, officers were directed to monitor and evaluate the functionality of the Featherston Street safety improvements and report back in November 2024 and again in April 2025. This is the first of those reports.

1.2 The purpose of this report is to update Council on the post-construction operation of the Featherston Street Safety Improvements Project.

1.3 This memorandum reports on three elements since construction was completed:

a) The function of this segment of Featherston Street;

b) The effect on adjacent businesses; and

c) Public feedback on the completed project.

2. BACKGROUND AND PREVIOUS COUNCIL DECISIONS

2.1 The Featherston Street Safety Improvements Project, between Palmerston North Boys’ High School and Central Normal School, has been delivered through NZTA Waka Kotahi’s Streets for People and Transport Choices programmes. The works included:

a) Separated cycleway

b) Raised crossings

c) In-lane bus stops

d) Narrowing and raising side street intersections

e) Placemaking

2.2 The project objectives are to provide safe, accessible transport options for people who would like to ride a bike, walk or take the bus and increase participation in active transport. This aligns with Council’s Strategic Networks, which has Featherston Street as a priority corridor for public transport and cycling.

2.3 At the same time as Council made changes on Featherston Street, NZTA Waka Kotahi made complementary minor improvements to the intersection with Rangitikei Street, mostly around changes to the signal phasing.

2.4 Construction was completed in July 2024.

2.5 Previous Council decisions regarding Featherston Street:

Date	Detail
15 February 2023	Council approved the programme for the wider Featherston Street Safety Improvements Project, which brought together two NZTA Waka Kotahi funding streams – Streets for People (90% NZTA Waka Kotahi funding) and Transport Choices (100% NZTA Waka Kotahi funding).
April-June 2023	Co-design workshops with stakeholders, businesses and residents; involving some Councillors and senior Officers.
28 June 2023	Council endorsed the preferred unidirectional cycleway option. Council also noted trials would be undertaken and feedback from the trials would be brought back to Council for consideration.
August 2023	Trials were undertaken of key elements of the Featherston Street Safety Improvements Project.
27 September 2023	Council endorsed the design for the Featherston Street Safety Improvements Project. A report on the August trials were presented to Council.
December 2023	NZTA Waka Kotahi advised Officers that Transport Choices funding for cycleways was withdrawn.
February 2024	Construction work commenced on Featherston Street.
3 April 2024	Council agreed to additional Streets for People funding for capital expenditure on Featherston Street for additional improvements.
1 May 2024	Council resolved to pause further work on the Featherston Street Safety Improvements Project, pending a report on alternative options for the bus stops.
5 June 2024	Council resolved to retain the existing bus stops and other elements. Council also directed Officers to report back to Council on the project in November 2024 and again in April 2025.
July 2024	Construction work was completed.

Table 1: Timeline of Council decisions

3. HOW FEATHERSTON STREET IS FUNCTIONING

3.1 Officers have monitored and evaluated the function of Featherston Street between North Street and Aroha Street, since construction was completed in July 2024.

MOTOR VEHICLES

3.2 Two sets of data have been gathered to measure traffic flow. The sets used different methodologies and show contrasting findings. Both are valid.

3.3 The first set of data was captured by WSP (consulting engineers, who are part of Palmerston North City Council’s Design Panel) over five school term weekdays between 17 September and 17 October 2024. Measurements were taken between 2:30pm and 5:30pm by sensors positioned in the vehicle lanes. These snapshot measurements show:

a) The time it takes to drive westbound has reduced: Weekday average of 190 seconds for a westbound motor vehicle to get from the back of the traffic queue through the intersection (compared with 241 seconds pre-construction, which was measured over 3 weekdays);

b) The time it takes to drive eastbound has increased: Weekday average of 146 seconds for an eastbound motor vehicle to get from the back of the traffic queue through the intersection (compared with 142 seconds pre-construction, which was measured over 3 weekdays);

c) The volume of traffic has reduced. The average daily vehicle counts range from 10,879 to 11,865 (compared with 13,187 to 14,268 pre-construction);

d) The volume of medium and heavy vehicles has reduced: The average daily counts range from 5.3% to 5.9% (compared with 6.4% to 7.8% pre-construction);

e) Traffic speeds have reduced: The average vehicle speeds range from 46km/h to 51km/h (compared with 50km/h to 51km/h pre-construction).

	Pre-construction	Post-construction
Westbound queue time	241 seconds	190 seconds
Eastbound queue time	142 seconds	146 seconds
Traffic volumes	13,187 to 14,268	10,879 to 11,865
Medium / heavy vehicles	6.4% to 7.8%	5.3% to 5.9%
Traffic speeds	50km/h to 51km/h	46km/h to 51km/h

Table 2: Motor vehicle pre and post-construction data

3.4 The second set of TomTom GPS data was provided by NZTA Waka Kotahi. This data, covering 24/7 activity over three months between July and September 2024, shows contrasting findings for post construction travel times for motorists, compared with the same period in 2023:

a) Median travel times for westbound traffic has increased by 20 seconds and by 14 seconds for eastbound traffic;

b) Median speeds have reduced from 37km/h to 31km/h eastbound and from 36km/h to 28km/h westbound.

BIKE RIDERS AND PEDESTRIANS

3.5 Four sets of cameras were used to capture the numbers of bike riders and pedestrians between 18 and 28 September 2024, along the section of Featherston Street between Palmerston North Boys’ High School and Central Normal School. The data shows:

a) Across the four count sites, a total of 3,362 bike riders were counted over the ten measured days, with the majority around Palmerston North Boys’ High School. Over each of the four count sites, the average per weekday ranged between 81 and 118 bike riders;

b) Across the four count sites, a total of 29,458 pedestrians were counted over the ten measured days, with the majority during the weekday school peak periods. Over each of the four count sites, the average per weekday ranged between 396 and 1,103 pedestrians.

3.6 The bike rider and pedestrian counts undertaken pre-construction in 2023 (see the Featherston Street Cycleway Update report to Council on 28 June 2023; specifically, Attachment ‘Co-design Session 3 Report’) used a different methodology.

3.7 For the April 2025 report we will use the same methodology as we have for the November 2024 report, which will provide an accurate comparison.

PARKING

3.8 There are 12 on-street carparks along this segment of Featherston Street, between Palmerston North Boys’ High School and Central Normal School:

· 6 between Rangitikei Street and North Street.

· 6 between Rangitikei Street and Aroha St.

3.9 Parking occupancy was captured across three days between 19 and 24 September 2024 (two weekdays and one Saturday), measuring the peak periods between 10am to 11:30am and 2:30pm to 4pm (weekdays) and 10am to midday (Saturday).

3.10 The data shows the average occupancy of the on-street parking during the morning and afternoon peak was 51%.

3.11 The car park that had the highest average weekday occupancy was the single car park in front of Piano Services (opposite Central Normal School). The car parks that had the lowest average weekday occupancy were the three car parks in front of Troy Howard Motors (opposite Palmerston North Boys’ High School).

3.12 Central Normal School is reporting a large increase in the number of students being dropped off on Beresford Street.

BUS SERVICE

3.13 The bus network on Featherston Street is serviced by four in-lane bus stops, adjacent to Suzuki, Woolworths, Office Products and Palmerston North Boy’s High School.

3.14 The bus services using these four stops are:

· 104 (using the stops at Woolworths and Office Products)

· 106 (using the stops at PNBHS and Suzuki)

· 311 (using the stop at PNBHS)

3.15 At peak, buses can service these stops every 15 minutes, though in practice buses do not pick up or drop off passengers at each bus stop on every journey.

3.16 The following data provided by Horizons is for the 2-week period 9-22 September 2024:

Bus stop	Total passengers boarding / alighting / transferring over the 2-week period (compared with 4-17 Sept 23)	Percentage of times buses stopped at this location	Average dwell times of buses when stopped for passengers
Suzuki	322 (52)	22%	25 seconds
Woolworths	198 (183)	25%	18 seconds
Office Products	164 (134)	20%	31 seconds
PNBHS	393 (137)	24%	21 seconds

Table 3: Bus passenger data

3.17 The data captured during this 2-week period shows that patronage has more than doubled at these four bus stops, compared with the corresponding period in 2023. This compares with a 34% increase in patronage across the Palmerston North bus network since the new service began in March 2024.

3.18 Tranzit has reported that “Drivers are very happy with these [in-lane] stops stating it is wonderful to be able to exit them without having to worry about cars cutting them off.”

3.19 WSP has reviewed the data for the Office Products stop, where the average dwell time is 31 seconds, and concluded that in a ‘busiest case scenario’ – with a bus stopping every fifteen minutes during the peak period and with 450 vehicle movements in the eastbound lane – there would be a consequential 4.4 second addition to the total journey time for vehicles using that section of road during the peak period.

3.20 In summary, the data shows that the in-lane bus stops have a less than minor effect on overall traffic flow and efficiency.

CRASHES

3.21 In the 4-month period since construction was completed in July 2024, one crash has been reported, involving a car and motorcyclist at the intersection with Aroha Street. There have been no reported crashes involving pedestrians, bike riders or buses.

3.22 By comparison, over the five years between 2019 and 2024, there were 92 reported crashes on Featherston Street between PNBHS and Central Normal School: 1 serious, 21 minor, 70 non-injury.

3.23 The post-construction data is for only a 4 month period since July 2024. A more complete analysis of comparable crash data can be made after 12 months of post-construction monitoring and evaluation.

DESIGN AND OPERATIONAL ISSUES

3.24 There are some minor design and operational issues within this segment of Featherston Street and the intersection with Rangitikei Street, which we are investigating and seeking to address through existing programmes, subject to budget capacity:

a) Cycleway:

I. Some bike riders are experiencing issues at the intersection, with the detector loops not picking up their presence. Officers are working on options to resolve this issue.

II. Some drivers continue to park their car in the cycleway, in the gaps between separators near intersections. This is a safety issue that we can address – subject to budget capacity – with the addition of separators in the gaps.

III. The addition of the artwork provided by Rangitāne has not yet been added to the cycleway. This artwork is intended for the approaches to the in-lane bus stops. This work will be progressed as and when there is budget capacity.

b) Footpath:

I. The remaining faults along the original footpath on both sides of Featherston Street pre-date implementation of the recent improvements. Subject to budget capacity, these faults will be repaired, and sections of the footpath will be renewed.

II. Some motor vehicles are cutting across the footpath build outs as they turn left into the side streets, which is damaging the new grass. This is a safety issue that we can address – subject to budget capacity – with the addition of large boulders in the build-outs (similar to the boulders adjacent to the Mitre10 vehicle crossing).

III. Officers are also considering further improvements proposed by the Disability Reference Group and Blind Low Vision NZ.

c) Public transport

I. It can take longer than planned for public buses turning left from Featherston Street into Rangitikei Street, which is affecting the operator’s ability to run one of the services to schedule. Officers from PNCC and Horizons are investigating possible solutions with NZTA Waka Kotahi.

d) Vehicles

I. Two affected businesses have proposed minor changes to the road layout, to improve user safety and access. Officers will consider these changes.

3.25 Additionally, we are working with the project contractor to rectify minor construction defects.

4. MARKET ANALYSIS

4.1 A market analysis was carried out of selected businesses adjacent to the segment of Featherston Street between North Street and Aroha Street.

4.2 The market analysis:

a) Compared the data from all of September 2024 with September 2023;

b) Measured the number of transactions and value of electronic card spending;

c) Measured the activity of five large retail businesses and ten smaller businesses.

4.3 The data was compared with trends in Palmerston North and sub-precincts within the city, as well as compared with trends nationally.

4.4 For affected businesses on Featherston Street, the data comparing September 2024 with September 2023 shows:

	Change in spending	Change in the number of transactions	Change in average spend per transaction
Large businesses	-4.7%	-4.7%	0.0%
Small businesses	-4.2%	-0.4%	-3.8%
Total study area	-4.6%	-4.3%	-0.3%

Table 4: Market analysis showing percentage changes

4.5 During the same period (comparing September 2024 with September 2023):

a) Electronic card spending in Palmerston North fell by -6.3% and nationally by -5.3%;

b) Retail spending in the ‘CBD and Broadway precinct’ fell by -3.1%;

c) Retail spending in the ‘Terrace End precinct’ fell by -5.6% and ‘Outer CBD precinct’ fell by -7.4% (The area of Featherston Street included in this study is primarily located within the ‘Outer CBD’ retail precinct).

4.6 Therefore, based on comparing data from September 2024 with September 2023:

a) The reduction in retail spending (-4.6%) in the Featherston Street study area is slightly better than Palmerston North (-6.3%) and New Zealand (-5.3%)

b) The fall in the number of transactions in the study area (-4.3%) is slightly greater than the fall in Palmerston North (-3.9%) and New Zealand (-2.6%)

c) The fall in spending per transaction in the study area is slightly better

(-0.3%) compared to Palmerston North (-2.5%) and New Zealand (-2.8%)

4.7 The analysis indicates that the downturn in retail spending and transactions experienced within the Featherston Street study area is largely consistent with, and in some cases, better than, the contraction in retail spending observed across New Zealand and Palmerston North, and within comparator retail precincts across Palmerston North. Based on the observation of retailers included in the study, there is no indication that any downturn in retail activity in the Featherston Street study area departs from impacts observed from the current economic downturn, across the rest of the city, or nationally.

4.8 While the indicators of percentage change in electronic card retail spending and spending per transaction in the Featherston Street study area are slightly better when compared with Palmerston North and New Zealand, the results are specific to the month of September. Trends over a longer time period will be required to understand any impacts that may depart from wider observations of retail activity. The next spending analysis, which will be brought to Council in April 2025, will use data from a longer period (September 2024 to January 2025); this will show whether the conclusions in 4.6 are reflected over a longer period.

4.9 The full ‘Featherston Street electronic card retail spending analysis – September 2024’ is included as Attachment 1.

5. COMMUNITY VIEWS

5.1 We have been receiving less public feedback through official Council channels since construction was completed in July 2024 and since NZTA Waka Kotahi addressed faults with the signals at the intersection with Rangitikei Street / State Highway 3.

5.2 We have compiled three sets of community views on the changes to Featherston Street, since construction was completed:

a) Direct stakeholder and user feedback

b) Hard copy surveys

c) Online surveys

DIRECT STAKEHOLDER AND USER FEEDBACK

5.3 We invited affected businesses and schools along Featherston Street to comment on the changes. The feedback received has been compiled into a single document, along with additional feedback from other stakeholders and users, including:

a) NZ Police

b) Fire and Emergency New Zealand

c) Disability Reference Group

d) Tranzit

5.4 See Attachments 2 and 3 ‘Featherston Street post-construction stakeholder and user feedback’ and ‘Disability Reference Group feedback re Featherston Street’.

5.5 Additionally, we received feedback at meetings with the Seniors’ Reference Group and Pasifika Reference Group. A mix of views was shared by members of both groups, from the perspectives of motorists and pedestrians. Overall, both groups were positive about the improvements to Featherston Street and would like to see the work extended.

HARD COPY SURVEYS

5.6 A post-construction survey was carried out between 15 and 30 September 2024, with questions about safety across different modes, issues, likes and dislikes.

5.7 We carried out one-on-one intercept surveys on Featherston Street. 131 hard copy surveys were completed, comprising:

a) 77% car users

b) 42% pedestrians

c) 25% bike riders

d) 8% bus users

5.8 Respondents shared mixed views about safety and other benefits of each of the improvements along Featherston Street. The main findings are:

a) There is an even spread of opinions. Around a third of respondents believe the new street design is safer, around a third believe it is less safe and around a third believe the level of safety is unchanged;

b) Most people rate walking and cycling as safer than before, however opinions on safety are mostly negative regarding driving and bus stops;

c) The main concerns raised were around parking, changes to the Rangitikei Street intersection and bus stops.

5.9 Because most of the hard copy surveys were conducted in person, the data should be regarded as more reliable and representative of Featherston Street users, compared with the online surveys.

ONLINE SURVEYS

5.10 An online version of the hard copy survey was created, and a link was sent to people who had registered an interest in the project, participated in the drop-in and co-design sessions, as well as stakeholders.

5.11 1,764 online surveys were submitted between 15 and 30 September.

5.12 The results from the online surveys are less reliable than the hard copy survey data, due to:

a) The online survey link was open, and it was shared through posts on community social media pages. Therefore, we do not know the proportion of survey respondents who are, or are not, users of Featherston Street;

b) Website data shows around 20% of online respondents submitted feedback from outside the region or overseas, including Australia, USA and Europe;

c) About 300-400 online respondents selected the “less safe” option across all relevant questions, regardless of their transport mode/s;

d) Many provided feedback on transport modes they do not use. For example, many drivers rated cycling and pedestrian experiences negatively;

e) It was reported in community social media pages that individuals could submit multiple online responses to skew the results.

5.13 The online survey responses are mixed but weighted towards a negative view of the changes to Featherston Street.

5.14 Refer to Attachment 4 ‘Featherston Street post-construction feedback report’.

6. CONCLUSION

6.1 Safety improvements to Featherston Street between Palmerston North Boys’ High School and Central Normal School were completed in July 2024 and since then users have been adapting to the changes.

6.2 Post-construction, there has been a reduction in the volume of motor vehicles using Featherston Street, as well as a reduction in vehicle speeds. Data on travel times is mixed, with some measurements showing an increase, while other measurements showing a decrease.

6.3 The footpaths on both sides of Featherston Street carry significant numbers of pedestrians at peak times. The cycleway is being well used and bus patronage has more than doubled.

6.4 The Featherston Street Safety Improvements Project covers 750 metres of a 4.5-kilometre road intended to prioritise public transport and cycling. The recent changes are delivering localised benefits and affecting some users’ behaviour. It is expected, however, that a sustained growth in the numbers of people choosing to walk, ride and take the bus – with corresponding safety and efficiency benefits – depends largely on the extension of the improvements along the rest of Featherston Street and connection to the wider network.

6.5 Motorists have been using the limited on-street parking on Featherston Street.

6.6 Further, the transaction data shows that businesses along this segment of Featherston Street, while experiencing a reduction in retail spending, performed slightly better than the rest of the city in September.

6.7 Public feedback has reduced since construction was completed. There are mixed views about the changes, with the online survey showing a majority negative perspective; however, there is general agreement amongst users who completed the hard copy surveys that the environment is safer for people walking and riding bikes.

7. NEXT STEPS

7.1 A second post-construction report on Featherston Street will be presented to Committee in April 2025.

7.2 Officers will monitor and evaluate the section of Featherston Street between North Street and Aroha Street and report again next year, with updates on:

a) The function of this segment of Featherston Street

b) Analysis of business activity

c) Community feedback

7.3 The estimated cost to provide an update in similar detail to today’s report is $38K.

7.4 It would be possible to carry out more detailed monitoring and evaluation – such as an analysis of the Featherston Street changes on adjacent street parking and traffic ‘displacement’ elsewhere on the network – however this would require additional resources, at additional cost.

8. Compliance and administration

Does the Committee have delegated authority to decide?		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 objectives?		Yes
Are the recommendations inconsistent with any of Council’s policies or plans?		No
The recommendations contribute to: Whāinga 1: He tāone auaha, he tāone tiputipu Goal 1: An innovative and growing city
The recommendations contribute to the achievement of objective/objectives in: 3. Mahere tūnuku 3. Transport Plan The objective is: Prioritise transport programmes that deliver on Council’s goals.
Contribution to strategic direction and to social, economic, environmental and cultural well-being	NZ Transport Agency Waka Kotahi’s Streets for People programme aims to create liveable cities through mode shift and creation of low carbon transport choices. Our project aims to improve environmental and social wellbeing for our community.

Attachments

1.	Featherston Street electronic card retail spending analysis - September 2024 ⇩
2.	Featherston Street post-construction stakeholder and user feedback ⇩
3.	Disability Reference Group feedback re Featherston Street ⇩
4.	Featherston Street post-construction feedback report ⇩

Report

TO: Economic Growth Committee

MEETING DATE: 20 November 2024

TITLE: Draft Parking Framework - Approval for Public Consultation

PRESENTED BY: James Miguel, Senior Transport Planner

APPROVED BY: David Murphy, General Manager Strategic Planning

RECOMMENDATION TO Economic Growth Committee

1. That the Committee approve the draft Parking Framework (Attachment 1) for public consultation.

Summary of options analysis for

Problem or Opportunity	Palmerston North does not have a strategic plan for how parking is managed in the city. This means that parking decisions have often been made in isolation and are not integrated with wider transport planning considerations. By developing a framework that provides direction and guidance for managing parking, the Council can align carparking management with Council’s broader goals for the City and the transport network, and community aspirations for specific places.
OPTION 1:	Approve the draft Parking Framework for public consultation. This option is recommended.
Community Views	Community views have been provided in the early stages of the development of the draft framework. Further community views will be sought through formal consultation.
Benefits	The framework will guide future parking decisions made by the Council, therefore improving transparency and consistency in decision-making and ensure progress towards the Council’s broader goals.
Risks	Parking management tends to raise competing views within the community regarding the broader approach to managing the transport network. There is a risk the Council receives mixed feedback and finds it difficult to resolve these tensions. Parking Framework seeks to manage this risk by improving transparency and consistency in decision-making.
Financial	Costs are met within the current budgets
OPTION 2:	Status Quo - Do not approve the draft Parking Framework for public consultation
Community Views	Community views on the draft framework will not be sought.
Benefits	There are no significant benefits that have been identified.
Risks	Parking management will continue to be managed as per the status quo, with issues being resolved on a somewhat ad-hoc basis. Parking changes won’t be coordinated to align with wider transport planning objectives. As the parking framework is a part of the Palmerston North Integrated Transport Initiative (PNITI), there may be a perception by our funding partners that we are not committed to progressing PNITI.
Financial	No additional costs as work on the parking framework would cease.
OPTION 3:	Do not approve the draft Parking Framework for public consultation and instead approve it for public engagement instead (no hearings and deliberations)
Community Views	Community views have been provided in the early stages of the development of the draft framework. Further community views on the draft framework will be sought through a range of engagement techniques.
Benefits	The framework will guide future parking decisions made by the Council, therefore improving transparency and consistency in decision-making and ensure progress towards the Council’s broader goals. Engagement does not require a hearing process and deliberations, which means the parking framework can be completed sooner when compared to option 1.
Risks	Possible public perception that the Council are not interested in hearing the community's views by using engagement over consultation. Inconsistent with the Council’s policy framework, which includes consultation. Council indicated a preference for consultation over engagement in the workshops held during the preparation of the Parking Framework.
Financial	Costs are met within current budgets.

Rationale for the recommendations

1. Overview of the problem or opportunity

1.1 The Council manages a significant amount of on and off-street carparking and there is often competing demands for this space and how it is utilised.

1.2 Currently Council manages its parking on an as-needed basis, with changes being made on a case-by-case basis. While this does allow Council to address specific parking requests, it limits Council’s ability to align its parking management decisions with wider Council goals.

1.3 A draft Parking Framework included as Attachment 1 has been developed in effort to address this issue.

1.4 The purpose of the Parking Framework is to:

· Align carparking management with Council’s broader goals for the City and the transport network, and community aspirations for specific places.

· Ensure the efficient use of carparks so that there is an appropriate supply now and into the future.

1.5 Palmerston North is growing and is projected to continue to grow. As the City grows the demand on the transport network is likely to grow as well. By alignin parking management with wider transport planning, we can mitigate the worst of these impacts on the transport network. We can ensure that there is an appropriate supply of parking while enabling development within the city.

1.6 Nothing in the Parking Framework predetermines a specific carparking outcome in a location in the City. Specific decisions will only be made following the preparation of more detailed parking management plans, and the design and consideration of capital programmes.

1.7 The draft Parking Framework was developed with input from a number of community stakeholders. We are now seeking to consult with the wider community to seek their views on the draft framework.

2. Background and previous council decisions

2.1 In 2021 NZTA Waka Kotahi completed the Palmerston North Integrated Transport Initiative (PNITI) Network Option Report. The report put forward a programme of interventions designed to address a number of safety and amenity issues, while improving the overall access for the city. The programme comprises over 70 projects, one of which is a review of the Council’s parking management.

2.2 Work on the Parking Framework began in October 2021 following the completion of PNITI. The project was initially scheduled to be completed in 2022. It has been delayed due to resourcing and budgetary constraints and to avoid consultation overlap with the 2024 Long-Term Plan.

2.3 The project commenced with a workshop with the elected members on 10 October 2021. This workshop was where the initial strategic direction was laid out for the framework. Following this, the project team commenced development of the framework. A second workshop with elected members was undertaken in August 2023. At this workshop, elected members provided feedback on the principles that had been drafted.

2.4 Initial stakeholder engagement was undertaken in 2022, with key stakeholders providing input into parking challenges and issues in the city. This helped to formulate the draft Parking Framework. Further engagement with stakeholders occurred in 2023, parts of the draft were shared with stakeholders to seek further feedback as the draft was refined and prepared for consultation.

2.5 On 27 March 2024 officers held a further workshop with elected members to present a working draft of the Parking Framework, ahead of presenting the draft to the Economic Growth Committee. The decision was made at the workshop that the consultation be postponed until after the Long-Term Plan consultation is completed.

2.6 The Parking Framework was also discussed by elected members on 18 September 2024 as part of a workshop on Transport Planning priorities (following a briefing from Waka Kotahi NZTA). There were mixed views on the need for a Parking Framework and the content of the draft Parking Framework. Elected members sought that the matter was to be resolved via consideration at the next Economic Growth Committee.

3. Description of options

3.1 There are three principal options in this report. The first is to approve the draft Parking Framework for public consultation. If the Council chooses this option, then officers will proceed to consult the community on the draft Parking Framework following the finalisation of the Long-Term Plan.

3.2 With option one, the Committee could also consider making minor amendments to the draft Parking Framework prior to consultation. If the Committee preferred a Parking Framework with different content, then it could provide broad direction to officers to re-draft the Parking Framework for consideration at a subsequent Committee meeting.

3.3 The second option is to not approve the draft Parking Framework for public consultation. If this option is chosen, we will not proceed with public consultation and work on the Parking Framework will stop until officers receive further instructions from elected members.

3.4 The third option is to approve the draft Parking Framework for public engagement instead of public consultation. If this option is chosen, we will proceed with public engagement of the draft Parking Framework. Under this approach, community views will be sought via a range of forums and techniques, but no hearing process will occur. This approach is inconsistent with previous elected member direction. A benefit to this option is a shorter timeframe for completing the Parking Framework and starting the first parking management plan.

3.5 Like option one, with option three, the Committee could consider making minor amendments or providing broad direction to offices to re-draft the Parking Framework.

4. Analysis of options

4.1 Option 1: Approving the draft Parking Framework for public consultation – gives the Council the opportunity to test its approach to parking management with the community. This allows staff to identify improvements that can be made to the framework and understand the views of the wider community.

4.2 Option 2: Not approving the draft Parking Framework for public consultation – would halt progress on the Parking Framework, which has already been delayed. Council will continue to address parking issues on a case-by-case basis without there being a clear alignment in the desired outcome.

4.3 Option 3: Do not approve the draft Parking Framework for public consultation and instead approve it for public engagement – Similar to option one. However, the process will not provide for formal consultation to occur. This option will result in the Parking Framework being completed sooner. Possible public perception that the Council are not interested in hearing community's views.

4.4 With Option 1 and 3, the Committee could consider minor amendments to the draft Parking Framework prior to consultation (option 1) or engagement (option 3).

4.5 With Option 1 and 3, if the Committee preferred a Parking Framework with substantially different content, then it could provide broad direction to officers to re-draft the Parking Framework for consideration at a subsequent Committee meeting.

5. Conclusion

5.1 Option 1 – approving the draft Parking Framework for public consultation is the recommended option.

5.2 There are clear benefits to undertaking consultation and giving the community an opportunity to provide feedback on the draft Parking Framework, which is an identified action within PNITI.

6. Next actions

6.1 If the recommendation to consult on the Parking Framework is approved, we will start preparing for public consultation, as detailed in section 7 of this report.

6.2 The draft Parking Framework will be developed into a designed document prior to public consultation.

6.3 Hearing of submissions has not yet been scheduled. Subject to approval to consult, officers will work to confirm the dates of the hearings. Following the completion of the consultation process, the final Parking Framework will be presented to the Economic Growth Committee for adoption.

6.4 Once the Parking Framework has been adopted, officers will commence work on the first parking management plan.

7. Outline of community engagement process

7.1 Consultation will occur in early 2025 to avoid the Christmas and New Year period. Specific dates are to be confirmed and will seek to avoid an overlap with other consultation processes. Consultation will be limited to the resources available and involve the following:

· direct contact with identified stakeholders;

· Public drop-in sessions at key locations;

· Radio adverts to target the morning commute;

7.2 In addition to the above methods, a consultation page on the Council website will host details of the framework, along with a submission form for people to provide feedback. The framework and the opportunity to provide feedback will be promoted via our social media channels. Printed copies of the consultation document and the submission form will also be made available.

8. Compliance and administration

Does the Committee have delegated authority to decide? If Yes quote relevant clause(s) from Delegations Manual; 4.2 Economic Growth Committee Terms of Reference.		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?		Yes
Are the recommendations inconsistent with any of Council’s policies or plans?		No
The recommendations contribute to: Whāinga 1: He tāone auaha, he tāone tiputipu Goal 1: An innovative and growing city
The recommendations contribute to the achievement of objective/objectives in: 3. Mahere tūnuku 3. Transport Plan The objective is: Manage parking in accordance with transport and urban design objectives
Contribution to strategic direction and to social, economic, environmental and cultural well-being	The completion of a Parking Framework to guide decision-making around parking means that decisions can be made in a coordinated manner that aligns with wider transport strategies and achieves a more positive outcome for the community.

Attachments

Draft Parking Framework ⇩

Memorandum

TO: Economic Growth Committee

MEETING DATE: 20 November 2024

TITLE: Annual Summary of Economic Impact and Benefits of Council Supported Events

Presented By: Luke McIndoe, Head of Events

APPROVED BY: Danelle Whakatihi, General Manager Customer & Community

RECOMMENDATION(S) TO Economic Growth Committee

1. That the Committee receive the memorandum titled ‘Annual Summary of Economic Impact and Benefits of Council Supported Events’, dated 20 November 2024.

1. ISSUE

1.1 Council provides funding to support the attraction, development, and growth of events in Palmerston North, by supporting world class events that drive sustainable growth in domestic visitation and promote Palmerston North’s unique identity to a wider audience through Council’s Major Event Fund.

1.2 To meet application requirements of the Major Event Fund, event producers must demonstrate how their projects contribute to Council’s goal of being an innovative and growing city. Officers utilise this information to inform funding decisions for the Major Events Fund through estimated economic impact analysis. Additional data is requested to compare estimated data with actual data gathered by the event producers during the running of the event and provided to council officers within six weeks of event delivery.

1.3 Accurate and appropriate data from event producers has been an issue and officers have been developing metrics for event producers to help inform reporting and decision making. This data includes accurate visitation statistics and spending data for event attendees, organisers, competitors and for the event itself. These metrics are requested for applications and post event reporting of the Major Events Fund. This allows for comparison between what was planned and what has been delivered by events that receive Council’s grant funding.

2. BACKGROUND

2.1 Table 1: Events Funded by Palmerston North City Council via Major Event Fund 2023/2024 and their grant funding allocations

Event	Amount
New Zealand Young Performer Awards	$22,000
Manawatu Arts Trail	$30,000
Armageddon Expo	$30,000
Gravel and Tar	$30,000
NZ Cycling Criterium Championship	$25,500
Palmy Drag Fest	$20,000
Kiwibots Vex National Championships	$10,000
Davis Cup World Cup of Tennis	$30,000
Pasifica Fusion	$30,000
Central District Field Days	$30,000
NZ Rural Games*	$75,000

*NZ Rural Games is funded via a separate programme however; their funding is guided by the metrics established by the Support and Funding Policy 2022 for the Major Event Fund.

2.2 Palmerston North City Council, along with several other city councils and central government utilise Event Economics by Fresh Info to analyse raw data provided by applicants.

2.3 Fresh Info utilises cost benefit analysis (CBA) to estimate impact. A summary of this methodology is provided as Attachment 1 to this report. Economic benefit analyses provide comparison between a gross versus regional net benefit. This can demonstrate the benefits that are purely event related and specific to the city. A higher net benefit indicates greater regional impact and spend.

2.4 Reporting generated by Event Economics provides a gross economic benefit and a net economic benefit. While traditional reporting indicates a gross benefit or increase to regional GDP, this method is a blunt tool and doesn’t take into account spend outside of region, distribution of event profit and impact from economic activity that is not actualised within region.

2.5 A summary of gross and net benefit is provided below for events that received Major Event Fund grant funding in the 2023/2024 financial year. A number of these recipients have multi-year funding agreements. This reporting is for the event run in the relevant financial year only.

Event	Gross Benefit	Net Benefit
New Zealand Young Performer Awards	$1,203,100	$327,075
Manawatu Arts Trail	$554,608	$145,547
Armageddon Expo	$2,179,080	$387,645
Gravel and Tar	$429,121	$101,401
NZ Cycling Criterium Championship	$144,337	$14,983
Palmy Drag Fest	$307,800	$73,300
Kiwibots Vex National Championships	$262,220	$73,357
Davis Cup World Cup of Tennis	$2,200,000	$184,569
Pasifica Fusion	$277,595	$37,495
Central District Field Days	$28,460,391	$5,361,470
NZ Rural Games*	$4,227,532	$663,809
TOTAL	$40,245,784	$7,370651

2.6 Return on investment for Council funding within the Major Event Fund when utilising net regional benefit is substantial and meaningful (2,116.74%).

2.7 Quality of data is a concern to officers and the quality and validity of reporting is contingent on accurate and appropriate metrics provided by event producers in the assessment and post-event reporting phases. Funding contracts now include specific reference to the information required to ensure accurate reporting to assist officers.

2.8 Economic Impact reporting can be viewed alongside other tools such as Marketview retail spending, however this data doesn’t isolate spending directly on event activity, but it does help in painting a wider picture of economic activity in the city while events are taking place.

3. NEXT STEPS

3.1 This report can be seen as a starting point to develop a picture of the economic impact and benefits that major events provide to the city. Annual tracking of economic data will begin to show a picture of the benefits that events provide to the city and future reports will expand to include other events that receive council support in other ways as well as events that do not receive direct council funding but do utilise venues within the city.

3.2 Council officers will continue to gather data from event producers to inform the future of the fund and to identify possible leverage opportunities that maximise social benefit to residents as a direct result of grant funding provided to the events industry.

4. Compliance and administration

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 objectives?		Yes
Are the recommendations inconsistent with any of Council’s policies or plans?		No
The recommendations contribute to: Whāinga 1: He tāone auaha, he tāone tiputipu Goal 1: An innovative and growing city
The recommendations contribute to the achievement of objective/objectives in: 2. Mahere whakawhanake ohaoha 2. Economic Development Plan The objective is: Residents and visitors have opportunities to attend a range of major events in Palmerston North. Local communities and businesses benefit from the vibrancy and the economic activity that major events and activities bring to the city.
Contribution to strategic direction and to social, economic, environmental and cultural well-being	Events funded by Council through grant funding provide wider economic benefits to the city.

Attachments

Event Economics Methodology ⇩

Memorandum

TO: Economic Growth Committee

MEETING DATE: 20 November 2024

TITLE: Tamakuku Terrace Six Monthly Update

Presented By: Bill Carswell, Acting Manager - Property, and Anna Saunders, Capital Projects Officer

APPROVED BY: Chris Dyhrberg, General Manager Infrastructure

RECOMMENDATION(S) TO Economic Growth Committee

1. That the Committee receive the memorandum titled ‘Tamakuku Terrace Six Monthly Update’, presented to the Economic Growth Committee on 20 November 2024.

1. ISSUE

1.1 During the last term of Council, the infrastructure committee requested six monthly updates be provided throughout the duration of the project. In the 2022-25 term, updates are presented to the economic growth committee.

1.2 This report is the update for the six-month period ending 31 October 2024.

2. BACKGROUND

2.1 Tamakuku Terrace is a new 114-section subdivision within the Whakarongo Growth Area. Section sizes within the subdivision range from 275m² (a couple) through to 810m², with the average section size being 463m².

2.2 The development is being delivered through two stages:

· Stage 1 – 79 sections; and

· Stage 2 – the balance of 35 sections.

2.3 Construction of Stage 1 was completed in October 2022 with titles issued in December 2022.

Tender Award – Tamakuku Terrace Stage 2 Construction

2.4 From the Council meeting held on 7 August 2024, Council approved the award of contract for Tamakuku Terrace Stage 2 Construction to Fulton Hogan Limited for the sum of $5,576,873.77 excl. GST.

2.5 Construction of Stage 2 commenced in October 2024 with completion expected in mid-2025, and titles issued by late-2025.

Tamakuku Terrace Design Guidelines Review

2.6 The Economic Growth Committee considered a review of the design requirements for the unsold sections at Tamakuku Terrace. In the Economic Growth Committee meeting held on 18 September 2024, the Committee recommended:

“That the Council approve Option 1 whereby the design guidelines remain in place in full for the Tamakuku Terrace development, including the following minor amendments:

a. Reduce the rear yard setback requirement from 3m to 1.5m for corner sections,

b. Permit a wider range of colour, cladding, and material finishes,

c. Permit a wider range of paving finishes,

d. Require all proposed planting areas to demonstrate a minimum of 50% of planted species from the Manawatu Plains Ecological District or plant species list, with the remaining 50% being other species suitable to the site conditions.

Noting that Officers will continue to monitor, assess, and amend the guidelines if required to support the sales strategy for the development.”

2.7 The amendments to the design guidelines have now been actioned, forming Version D of the design guidelines. A copy of Version D of the design guidelines are included in attachment 1. The amended design guidelines will be released to the market in November.

3. Project update – 31 October 2024

3.1 Below is an overview and update of the project and the various workstreams that are currently underway.

Stage 1 Financials

3.2 A high-level financial summary of the project costs is provided in the table below:

Stage 1	$ (excl. GST)
Budgeted total development cost	$15.2M
Forecasted total development cost	$14.3M Current cost to date is $13.5M Remaining costs are for landscape maintenance, sales fees, and legal costs.
Forecasted Stage 1 revenue	$24.8M
Completed settlements at 31 October	$6.67M

3.3 Please note: the forecasted revenue assumes all section sales are sold at their valuation prices.

Sales

3.4 Tamakuku Terrace is continuing to perform in line with the sales projections of 2 sales per month. Enquiries remain steady with recent sales conversions to back these up.

3.5 Pleasingly, since the last update report in June 2024, there has been seven further conditional or unconditional sales.

3.6 The graph of sales below shows the notable upward trend since November 2023, which indicates we are averaging 1-2 sales per month:

3.7 In the last eleven months, 14 out of the 18 sales have been to build partners. This is expected as build partners provide cost certainty to buyers and guide them through the build process. This assists end-buyers with obtaining finance and ensures homes are built in a timely manner.

3.8 The table below summarises the sales and stock volumes at Tamakuku Terrace as well as the pricing allocated to these:

Stage 1	Unconditional Revenue (Excl. GST)	Total Sales
Sold and Settled	$6,670,000	22
Sold (but still to settle)	$2,156,522	8
Conditional Sales (direct)	$352,174	1
Conditional Sales (to group builders)	$2,121,739	7
Total Sold Sections	$11,300,435	38
Unsold Stock	$13,519,130	41

3.9 Note that the eight sections above that are still to settle are with group builders with 12-month builder terms. They are unconditional sales; however, they will not settle until the time of issue of Code of Compliance or by 12 calendar months. These eight unconditional sales will settle over the next six months (October 2024 to March 2025) as homes are completed, totalling $2.16M of revenue.

3.10 A more detailed table of the Stage 1 section sales including the section sizes, sale dates, settlement dates, and confirmed sale prices are given in Appendix 2. Note that the summary table above contains the GST-exclusive values and Appendix 2 provides GST-inclusive sale prices.

3.11 Appendix 2 also provides a map of the development sections to see which have sold. Noting that all unsold sections in Stage 1 are available for sale.

3.12 At the time of writing this report, a further two sales are currently being negotiated with additional buyers who have expressed their interest.

3.13 An important milestone for the project will be breaking even on Stage 1. Based on the Stage 1 costs, circa 45 sections are required to break even. Providing that the two interested parties convert to sales, a further five sections need to be sold to break even. Based on our current sales cadence, Officers forecast achieving the breakeven milestone in early 2025.

3.14 The remaining section sales in Stage 1 will go towards offsetting the expenditure required for Stage 2. Once the breakeven for Stage 2 and the whole development is achieved, the balance of sale proceeds can be considered profit. This milestone is expected to be reached in late 2025.

Stage 2 Financials

3.15 A high-level financial summary of the project costs is provided in the table below:

Stage 2	$ (excl. GST)
Budgeted total development cost	$9.9M
Forecasted total development cost	$9.87M Current cost to date is $824k
Forecasted Stage 2 revenue	$11.85M

3.16 Please note again: the forecasted revenue assumes all section sales are sold at their valuation prices.

Stage 2 Workstreams

3.17 Below is an update on the workstreams for Stage 2:

Workstream	Commencement	Comments
Stage 2 detailed design and consent	July 2023	· The resource consent for Stage 2 has been approved by an independent commissioner. · Stage 2 engineering approval for water, wastewater, and roading is resolved. However, there is one item remaining with the stormwater design that is still to be resolved. This relates to a shared stormwater swale between Tamakuku Terrace and an adjoining landowner.
Culvert bypass construction	October 2024	· Fulton Hogan have now established on site and they have completed their enabling works as part of the culvert bypass including: o Establish site sheds and compound. o Sediment and erosion controls for the pipe culvert works. o Water main realignment within Te Hirawanui Drive. o Temporary works for the sheet piling from the downstream end. o Long lead time items of headwalls and pipe for the culvert bypass have been delivered to site. · Please refer to Appendix 3 for a visual aid of the culvert bypass construction progress. · KiwiRail have approved the authority grant variation and Fulton Hogan have submitted a permit application with KiwiRail for the culvert bypass works.
Earthworks	November 2024	· Earthworks are set to begin in November, using a haul road through Summerset’s site to move 20,000m³of fill from the Lower Terrace to the Upper Terrace in Stage 2. The utilisation of the haul road avoids damaging the newly laid roads at Tamakuku Terrace and provides lesser disruption to residents occupying Stage 1. · The earthworks period will run through the summer period until April 2025.
Civil construction	January 2025	· The remaining civil construction work including 3 waters, roading, and utilities installations will occur in the new calendar year with completion set for June 2025.

Health and Safety

3.18 There have been no near misses, incidents, or notifiable events/loss of time injuries for Stage 2 of the project to date.

4. NEXT STEPS

4.1 Issue Version D of the Whakarongo Design Guidelines to the market.

4.2 Continue Stage 1 section sales.

4.3 Continue with construction of Stage 2 culvert bypass installation. Commence earthworks and civil works with a target completion by 30 June 2025.

4.4 Commence Stage 2 pre-sales.

5. Compliance and administration

Does the Committee have delegated authority to decide?		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 objectives?		Yes
Are the recommendations inconsistent with any of Council’s policies or plans?		No
The recommendations contribute to: Whāinga 1: He tāone auaha, he tāone tiputipu Goal 1: An innovative and growing city
The recommendations contribute to the achievement of objective/objectives in: 15. Mahere whare 15. Housing Plan The objectives are to: · Provide infrastructure for housing growth areas. · Ensure serviced land is available to enable short, medium and long-term for housing and business development.
Contribution to strategic direction and to social, economic, environmental and cultural well-being	Progressing with the Tamakuku Terrace subdivision development within the Whakarongo Growth Area will: • Provide additional sections to the marketplace to help reduce the supply vs. demand shortfall. • Provide choice to purchasers through a variety of section sizes and provide them the freedom to choose their preferred house builder. • Provide a best practice example to the private development community showcasing the opportunities and benefits of working closely with local iwi, urban designers, territorial authorities, and local experts to achieve excellent outcomes. • Support local contractors and the employment market.

Attachments

1.	Appendix 1 - Whakarongo Design Guidelines - Version D ⇩
2.	Appendix 2 - Tamakuku Terrace Stage 1 Section Sales ⇩
3.	Appendix 3 - Culvert Bypass Construction Progress ⇩

Committee Work Schedule

TO: Economic Growth Committee

MEETING DATE: 20 November 2024

TITLE: Committee Work Schedule - November 2024

RECOMMENDATION TO Economic Growth Committee:

1. That the Economic Growth Committee receive its Work Schedule dated November 2024.

Committee Work Schedule – NOVEMBER 2024

	Estimated Report Date	Subject	Officer Responsible	Current Position	Date of Instruction & Clause no.
1	~~18 Sep 2024~~	~~Quarter 4 Economic Report April-June 2024~~	~~General Manager Strategic Planning~~	Deferred from committee September	~~Terms of Reference~~
2	~~18 Sept 2024~~	~~International Relations 6 Monthly report~~	~~General Manager Strategic Planning~~	Deferred from committee September	~~Terms of Reference~~
3	~~20 Nov 2024~~	~~PNAL – Annual Report for 2023/24~~	~~General Manager Corporate Services~~		~~Terms of Reference~~
4	~~20 Nov 2024~~	~~Parking Framework – Draft for consultation~~	~~General Manager Strategic Planning~~
5	~~20 Nov 2024~~	~~Presentation: The Factory~~
6	~~20 Nov 2024~~	~~CEDA – Annual Report for 2023/24~~	~~General Manager Strategic Planning~~	~~Waiting on audit~~	~~Terms of Reference~~
7	~~20 Nov 2024~~	~~PNAL – Statement of Expectation for 2025/26 – 2027/28~~	~~General Manager Corporate Services~~		~~Terms of Reference~~
8	~~20 Nov 2024~~	~~PNCC Events - Annual Summary of Economic Impact and Benefits 2022/23~~	~~General Manager Customer & Community~~		25 October 2023 Clause 60-23
9	~~20 Nov 2024~~	~~Featherston Street – report back on functionality of road~~	~~General Manager Infrastructure~~		Council 5 June 2024 Clause 98-24
10	~~20 Nov 2024~~	~~Tamakuku Terrace Update (6 Monthly)~~	~~General Manager Infrastructure~~		~~Terms of Reference~~
11	~~20 Nov 2024~~	~~Streetlight Timing and Cost Report Re city-wide survey, upgrades to additional streets and replacement of bulbs and stock~~	~~General Manager Infrastructure~~		~~19 June 2024 Clause 43-24~~
12	~~20 Nov 2024~~ 9 Apr 2025	Quarter 1 Economic Report Jul-Sep 2024	General Manager Strategic Planning	September quarter data is not released until 22 November	Committee Terms of Reference
13	~~20 Nov 2024~~ 9 Apr 2025	Streets for People Update (6 monthly)	General Manager Infrastructure	Officers are working through NZTA funding implications for this project	Terms of Reference 28 February 2024 Clause 18-24
14	~~20 Nov 2024~~ 9 Apr 2025	Featherston Street – concept design options – shared walkway/ non-separated cycleway	General Manager Infrastructure	Officers are working through NZTA funding implications for this project	Council 5 June 2024 Clause 98-24
15	~~20 Nov 2024~~ 9 Apr 2025	City Central Indicative Business Case (CCIBC) Update	General Manager Strategic Planning	To align with the 6 months update on the City Centre Transformation Steering Group.	19 June 2024 Clause 42-24
16	~~20 Nov 2024~~ 9 Apr 2025	Economic Profile: Logistics and distribution (3-yearly)	General Manager Strategic Planning	Officers doing some additional work with NZIER that will include as an input	30 August 2023 Clause 35-23 Schedule
17	9 Apr 2025	Road Maintenance Contract (six-monthly report on work programme and performance)	General Manager Infrastructure		16 March 2022 Clause 4-22
18	9 Apr 2025	Tamakuku Terrace Update (6 Monthly)	General Manager Infrastructure		Terms of Reference
19	9 Apr 2025	Featherston Street – report back on functionality of road	General Manager Infrastructure		Council 5 June 2024 Clause 98-24
20	9 Apr 2025	Vogel Street Safety Improvements Update	General Manager Infrastructure		12 April 2023 Clause 14-23
21	9 Apr 2025	City Economic Structure Report (annually)	General Manager Strategic Planning		Rec 1c
22	9 Apr 2025	PN Airport – Six Month Report and draft SOI	General Manager Corporate Services		Terms of Reference
23	9 Apr 2025	Quarter 2 Economic Report October-December 2024	General Manager Strategic Planning		Terms of Reference
24	9 Apr 2025	CEDA – Six Month Report and draft SOI 2025-28	General Manager Strategic Planning		Terms of Reference
25	9 Apr 2025	International Relations and Education Activities – 6 months update	General Manager Strategic Planning		Terms of reference Council Clause 203-23
26	11 June 2025	PNAL – Final Statement of Intent for 2025/26 to 2027-28	General Manager Corporate Services		Terms of Reference
27	11 June 2025	CEDA – Final Statement of Intent for 2025/26	General Manager Strategic Planning		Terms of Reference
28	11 June 2025	2025-2026 Annual Plan – International Relations Activity to include quantitative and qualitative measures	General Manager Strategic Planning		Council 5 June 2024 Clause 102-24
29	2024/25	Economic Profile: Agri-food (3 yearly)	General Manager Strategic Planning		30 August 2023 Clause 35-23
30	2025/26	Economic Profile: Tourism (3 yearly)	General Manager Strategic Planning		30 August 2023 Clause 35-23
31	Early 2025	New Zealand Food Awards – Annual Report	General Manager Customer & Community		31 May 2023 Clause 88.12-23
32	Early 2025	Annual Snapshot of Economic indicators for the city	General Manager Strategic Planning		30 August 2023 Clause 35-23

Leonie Hapeta (Chair)
William Wood (Deputy Chair)
Grant Smith (The Mayor)
Mark Arnott	Lorna Johnson
Brent Barrett	Debi Marshall-Lobb
Rachel Bowen	Billy Meehan
Vaughan Dennison	Orphée Mickalad
Roly Fitzgerald

Does the Council have delegated authority to decide?		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 objectives?		Yes
Are the recommendations inconsistent with any of Council’s policies or plans?		No
The recommendations contribute to: Whāinga 1: He tāone auaha, he tāone tiputipu Goal 1: An innovative and growing city
The recommendations contribute to the achievement of objective/objectives in: 2. Mahere whakawhanake ohaoha 2. Economic Development Plan 3. Mahere tūnuku 3. Transport Plan These relate to having an innovative, resilient & low-carbon city economy where people, whanau and communities can prosper & achieve their goals and a city transport system that links people & opportunities.
Contribution to strategic direction and to social, economic, environmental and cultural well-being	The airport is a key strategic gateway to the City