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Otago Daily Times
26-05-2025
- Business
- Otago Daily Times
Councillors told option the riskiest
Councillors who backed going it alone on building a new Dunedin landfill were warned by independent experts it was the riskiest option being considered. The report on Smooth Hill, developed by consultancy Morrison Low, was released publicly last week ahead of deliberations on the Dunedin City Council Long Term Plan. In November, councillors voted 11-2 to build a landfill at Smooth Hill independently, subject to long-term-plan funding, rather than exporting waste out of the district or building in partnership with a private company. Cr Sophie Barker said she was "satisfied" the council made the right decision, while Cr Andrew Whiley was concerned the proposed model could be affected by private competitors. Council staff recommended the council go it alone, but Morrison Low's report advised the Smooth Hill landfill be built in partnership. In 2023, Morrison Low said although a council-owned and operated landfill would have a lower impact on annual rates, it had significant capital requirements and was the highest risk of the final options. Morrison Low also ranked the option 12 from 13 longlisted options, where it scored low in potential affordability and achievability. Building in partnership would provide the council with industry expertise and access to a wider disposal market while disposing of waste out-of-district was "not a viable" alternative. In a 2024 update, Morrison Low told councillors building alone had the highest potential revenue but remained the highest financial risk. Running with a commercial partner was highly dependent on the commercial model and "deficiencies in contractual arrangements" between councils and private waste companies had been recently highlighted. "Overall, the difference between [building alone or in partnership] is small." If the council built the landfill alone, there was a risk of competition from commercial waste companies. "AB Lime have already signalled they would look to develop their own transfer station in Dunedin, attract commercial customers away from DCC and transport waste to their landfill in Southland." In their report to the council, staff said building independently provided more autonomy to dispose of its own waste and meet waste reduction goals. It did rely on annual waste to the Smooth Hill landfill remaining "the same or similar" to current tonnages to the Green Island Landfill. "There may be measures that could mitigate this risk, such as a landfill management contract with appropriate incentives," the report said. It also noted Morrison Low estimated the landfill would cost $80 million, including 20% contingency. The council had included $92.4m in the draft long-term-plan budget, which included a further contingency. Cr Barker said councillors had "ample opportunity" to ask questions during the process and she was "satisfied" with the decision. Risks were able to be managed through the contingency and Dunedin had "mountains of waste to dispose of", she said. Cr Andrew Whiley opposed building the Smooth Hill landfill and said he was surprised to hear of AB Lime's planned transfer station. "That was mentioned briefly in our papers, but yet when you look at our modelling and everything else, I found that revelation actually quite concerning because I believe that does change our business model on that basis." Mayoral candidate Andrew Simms said he welcomed the release of information which allowed greater scrutiny of the council's decision but urged councillors to be certain they had considered all options. "At first read of the report there are some figures that are difficult to reconcile with my evaluation of the business case for Smooth Hill. This requires more investigation and more questions before I could be in any way confident that council is making the correct decision." Councillors are expected to vote on funding for the Smooth Hill landfill today, as part of long-term-plan deliberations.


Otago Daily Times
20-05-2025
- Business
- Otago Daily Times
DCC urged to ‘top up' heritage property sales
The Dunedin City Council has been urged to balance personal cost with public benefit as it considers the fate of properties planned for heritage protection. As part of proposed changes to the district plan, the council has identified 146 buildings which may be added to the heritage schedule. At a hearing yesterday, commissioners Rob van Voorthuysen (chairman), Cr Sophie Barker and Cr Jim O'Malley heard 11 submissions on the planned changes. Highgate property owner Stephen Christensen told the panel the resale value of his 1910s house could decrease by about 13% if it was scheduled and the council should agree to "top up'' any future sale in exchange. "If we can be assured that we will not be penalised when we come to sell in the next few years, we would not oppose the listing,'' he said. "After all, council acknowledges that listing provides a public benefit, so why should the cost of that be borne by private ratepayers?' Cargill Castle trustee David Kiddey said while he was supportive of all the proposed buildings being added to the schedule, the council needed to extended some leniency to owners. The proposed listings were "sensible additions'' when viewed from the street "and that's all we need, really. It doesn't matter what goes on behind.'' He suggested owners be allowed to make "reasonable changes'' to their buildings while maintaining an aesthetic street view. "If you're driving down a nice street, that's what you see, and that's what makes it attractive. If you don't know what's behind those facades, it doesn't matter.'' Dunedin landlord Mark Thom opposed his six Central Dunedin properties being listed. He said the council's proposed changes were a "dirty wee trick'' when proposed Resource Management Act reform from the National-led government could change how heritage properties are managed. Mr van Voorthuysen said the council had to operate as the law stood. Five people spoke during the University of Otago submission, opposing heritage protection for the Archway Lecture Theatres. University vice-chancellor Grant Robertson said the theatres were not widely loved on campus and not part of the university's future. During consultation on plan change 1, the council received 132 submission related to heritage — 68 wanted the related submission accepted, 44 for the submission to be rejected, 15 asked for the change to be accepted with amendments and five submitters wanted a change amended if it was not rejected. The hearing continues tomorrow and further changes to the district plan will be considered later in the year.