Wellington City Council’s $207m Jervois Quay lease deal revealed after Ombudsman investigation

It did say the lease was a “cost-effective long-term solution” and favourable terms were negotiated.

The Herald complained to the public sector watchdog, Ombudsman John Allen, citing the need for transparency for the use of ratepayer funds, and pointing to the publication of details of similar lease arrangements for other city councils’ headquarters.

The Ombudsman investigated and wrote to council CEO Matt Prosser.

Now, the council has backtracked on its refusal, finally making public the 25-year deal totalling $207m, plus fit-out costs.

The new Jervois Quay HQ will house the council’s 1200 staff, as well as the council chambers, mayor’s Office, hearing room, and a ground floor reception.

Relocation to Jervois Quay was supposed to happen earlier this year, but will now not take place until early 2026 due to delays in preparing the building.

The council’s chief Māori officer, Karepa Wall, is leading the project and said in a statement the council has now begun its part of the fit-out after strengthening works and base renovations were recently completed by Cornerstone Partners.

Wall said the council secured a “favourable rate of $488/square metre in comparison to other CBD lease options, presented to elected members, which had square metre rates between $1000-$1102″.

The Greenstar rated building is 17,000 sq m, equalling an $8.29m annual lease cost to the council, and $207.4m over 25 years.

The location was partly chosen due to its proximity to Te Ngākau Civic Square – the “creative and civic heart of the city”, Wall said.

The current council chambers, alongside most staff, are in the former PricewaterhouseCoopers tower at 113 The Terrace.

The organisation was previously housed in Civic Square but had to move to the temporary Terrace site, as well as a Boulcott St lease, and the City Archives building on Barker St in 2018 after the Kaikōura earthquakes.

The council did consider moving back in to the old Civic Administration Building and Municipal Office Building, but decided with the Jervois Quay site in line with officer recommendations.

The new HQ site is owned by Wellington City Council as a ground lease to Cornerstone Group.

But the Herald understands the council is currently in negotiations to sell off the ground lease of the site, to help bolster its Disaster Resilience Fund and mitigate its insurance risk.

Ethan Manera is a Wellington-based journalist covering Wellington issues, local politics and business in the capital. He can be emailed at ethan.manera@nzme.co.nz.