Inside The New Office Building Tauranga City Council Is Paying $91.9m To Lease

Scoop

09-05-2025

Tauranga City Council's chief executive has defended the $91.9 million, 15-year cost to lease its new building, saying this enables the council to adapt to a changing workforce.
The council's 1000 or so administration staff have started moving into the eight-storey eco-building at 90 Devonport Rd in Tauranga's CBD.
It is the first time the staff would be under the same roof since 2014, when black mould was discovered in the now-demolished Willow St civic administration building.
The lease has an annual rent of $6,129,511 plus $313,352 for 65 carparks.
The council is leasing the building from Willis Bond, having sold the property developers the land in 2021 for $8.5 million.
Council chief executive Marty Grenfell said he was looking forward to having all the staff together and the collective culture it would bring.
He was asked if the council had considered owning and constructing the building itself at potentially a lower cost than the lease.
Grenfell said: "Owning and managing a building of this nature is not necessarily our [the council's] core business."
The lease of 15 years, plus three five-year extensions, would enable the council to cater to the needs of staff in 20 to 30 years' time, he said.
"Over that time, it's likely that the needs of office space changes. Otherwise, we're stuck with bricks and mortar."
Grenfell said the fit-out cost of $33.5m over 30 years for the building was a "very modest spend and complete value for money".
The council had calculated the cost of staff time walking between the old leased staff buildings at $1m a year, Grenfell said.
"Arguably, over the period of time, the fit-out cost would be paid for by productivity."
Stepping inside
Local Democracy Reporting toured the building ahead of staff moving in.
The full glass façade is softened as you step inside, with huge pine structural beams bringing nature indoors.
The $45m building is the country's largest mass timber office, with more than 2000 tonnes of New Zealand timber.
Built by LT McGuinness, it has a 6 Green Star Design rating and features rainwater harvesting, electric vehicle charging and facilities that encourage active commuting.
LT McGuinness project director Craig Body said not damaging the timber elements during construction was challenging at times.
"This was a finished product right from day one, so everybody had to treat it like a piece of skirting or a piece of scotia [moulding]."
Body said the use of timber cut down noise - screws in wood rather than drilling into concrete.
Prefabricated timber sped up construction and six people put in the structural elements, he said.
Steel frames seismically connected the timber structure to the ground, making it a hybrid building, Body said.
The first floor has council meeting chambers and a councillors' lounge. A cafe would lease ground floor space and be open to the public, with outdoor dining.
Natural inspiration
Warren and Mahoney principal architect Asha Page designed the $33.5m interior fit-out, which included meeting rooms, offices, flooring finishes, electrical, digital and IT.
She said level two was her favourite floor because it felt like you were in the pōhutukawa tree growing on the harbour side of the building.
The tree inspired the interior colour palette, earth tones mirroring the trunk on lower floors, then blue to represent the harbour, green like the leaves, with the top floors red like pōhutukawa in bloom, said Page.
The pōhutukawa was also a sacred symbol of the past, present and future for mana whenua, she said.
The wooden interior features are broken up with soft furnishings, carpets and greenery.
Page said they had reused as much furniture and fittings as possible from the other buildings.
An internal wood staircase aimed to encourage connection between people, getting them out of their seats rather than using the elevator, Page said.
"Humans will easily walk up or down one or two flights of stairs, so you really start to see the workplace as a whole building, not just as where you sit on one floor, siloed with your team.
"It's a tried-and-true method of creating a really vibrant or connected workforce."
Page said staff had been spread across three buildings, so they wanted to maximise the ability for people to come together.
It also tied into one of the building's design principles - taura here - binding people so they're stronger together, she said.
Between 600 and 700 people would work in the building on any given day.
Level five was the "anchor floor" with the kitchen, seating and an events area.
The top floor houses the mayor's office, which has views of Mauao and the Kaimai range. The smaller deputy mayor's office next door shared the Mauao view.
Māori design principles
The values used to design the building were developed with mana whenua, Ngāti Tapu and Ngāi Tamarāwaho hapu, said council te pou ahurea cultural adviser Josh Te Kani.
Te Papa houkura and Te Papa manawa whenua, referencing the fertile land and springs of the Te Papa peninsula, were about keeping the environment healthy.
The other two were Te Papa o ngā waka, meaning people could find safe anchorage, and Te Papa kāinga o te iwi - the home of the people.
"It's not just creating a building but creating a living environment where those values can be living alongside of us and grow with us."
Council staff are to be fully moved into the building by Monday next week. The first council meeting is to be held in the new chambers on Tuesday.