Monthly Archives: February 2020

Municipal Building – what will it become?

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The redevelopment of the Municipal Building got underway in January 2019 and is expected to be completed in early 2022.

At this stage the final make-up of what will operate in the building hasn’t been finalised, but it is certain that the Assembly Dining Hall and the Shakespeare Room will remain and it will be promoted as a commercial, community and education facility.

Architects Matthews & Matthews Architects collaborated with Dena Aroha Bach to develop concepts for the Hastings Municipal Building.

The concept is based on a Story of Light: to allow a reopening of the place; to bring back into the Hastings Municipal Building the light and energy of the community as a place of creativity and innovation that serves the community.

The aim is to re-engage the collective memories that already exist through this place, and for these memories and knowledge to be handed down to the youth and coming generations.

The building will resemble some of its original form when it was first built in 1916, such as opening up the central foyer area that will be entered from a laneway between the building and the Opera House, as well as from Hastings Street and Heretaunga Street. Retail and commercial spaces will be part of the new look.

Gemco is expected to finish all the structural strengthening by the end of April 2021, followed by a fit-out for the confirmed use.

Eddie says the strengthening is a huge undertaking due to how the building was originally built. “It was entirely made from bricks and mortar with no lateral seismic stability, and it was of a lower quality than the Opera House. We’ve virtually removed all the brick columns and replaced them with concrete.”

Engineering feats steal the show

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Such a crucial role was taken up by two engineering consulting firms Holmes Consulting and local experts Strata Group with Red Steel providing 163 tonne of structural steel across the Opera House, Functions on Hastings and the Municipal Building.

Holmes Consulting completed the structural designs for the Opera House and the Municipal Building, while Strata Group was the on-the-ground consulting firm that has regularly checked off that what was designed has been implemented by the Gemco construction team.

Strata Group then stepped up and carried out the structural design for the new Functions on Hastings building (the former Plaza) as well as being the lead firm in reviewing the construction process for the redevelopment undertaken by Gemco.

Structural engineer David Plowman has made the 200-metre walk from Strata Group’s office in Queen Street to Hastings Street many times over the past couple of years.

“Being local and so close to the project has really helped. We would get a call from Eddie at least once a week, but sometimes up to four times a week, and we could walk across and check things quickly.”

The role comes with significant responsibility as the buildings are of national heritage status, together with the fact that Hastings ratepayers are footing much of the bill to reopen the Opera House.

“It’s really exciting to see the Opera House come back to life. A lot of what has been done is behind the walls to ensure it is standing strong well into the future. In part, most of what has been done people won’t even notice; however, we’ve kept some of the structural steel exposed in one of the bathrooms so that people can get an idea of the complexity of the work.”

Bob Hawley, managing director of Red Steel, says 95 tonnes of steel was used, a key element to the project.

Structural steel bracing was integral to the project, with bracing diaphragms installed at various levels – both internally and externally – to provide the lateral support necessary to meet design parameters.

Bob says the challenge was in the execution – installing the bracing without removing the roof.

The solution required precision planning and careful execution as the steelwork had to be craned through holes cut in the roof and the walls of the building, then manually lifted into place with custom- made rollers, gantries and chain blocks.

“We had to devise innovative temporary lifting systems to manipulate the large steel components into these tight spaces.”

Red Steel was a finalist in the 2019 Steel Construction NZ Steel Awards $1.5 million to $3 million category for the work they did on the Opera House.

The judges’ comments were: “This redevelopment showcases a stunning use of steel, creating an aesthetically pleasing, open structure. The strong architectural concept was followed through via contractor engagement and the methodology around fabrication and installation was very impressive.”

What is Toitoi?

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Toitoi – Hawke’s Bay Arts and Events Centre is the new name for the centre that includes the Opera House, the Municipal Building, the Cushing Foyer and the former Plaza space is “Toitoi”.

The name Toitoi, with its Māori and English components, gives an identity to the complex that conveys a sense of people, place and purpose to audiences and future users on a local, national and international stage.

Toitoi is a Māori word meaning the pinnacle of achievement, and is linked to ideas of excellence, encouragement and motivation. It is also ascribed to the quick movements of fish and birds and, from there, styles of dance and song that mimic them.

There is an extra special link for Hastings and the Ngāti Kahungunu legacy waiata Pōkarekare Ana composed by Paraire Tomoana.

In one of its earliest written versions Pōkarekare Ana was described by ethnologist Elsdon Best as a “toitoi”, a ditty or light-hearted love song that echoed the sound of birds cooing to each other.

It was a type of waiata popular in the 1920s and 30s, particularly in Heretaunga, giving it a unique link to both this place and a time in the district’s history that was significant.

The word ‘toi’ means art and is often used alongside other words in the naming of arts-based organisations. “Toi Toi Toi”, an Italian expression derived from Old German, is an exclamation in the performing arts world (most often in opera) used by performers to wish each other good luck.

Blockbuster project delivered on time and budget

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Herman Wismeyer of Focus Project Management has the huge task of ensuring the biggest and most complex project ever carried out in the Hastings CBD is delivered on time and to budget.

To complicate the challenge, two of the three buildings are classed Heritage Place Category 1, having been built during World War One.

“You’re dealing with heritage buildings that are over 110 years old and you assume a lot of things, but it’s not until getting underway that you realise things are not what they seem.”

It also meant that when any setback occurred, everyone would rally together.

The biggest setback – a costly fire in the loading bay behind the theatre stage – required a significant amount of fire repair work but also provided an opportunity to carry out work that was never planned.

“What we saw as a team was an opportunity and we were lucky that the location of the fire reduced the potential damage significantly, with the fire protection curtain doing its job and stopping smoke entering into the auditorium.”

The fire damage, covered by insurance, was $750,000 and enabled the rebuild of the loading bay as well as the painting of the stage walls.

The two months prior to the planned handover to council, Herman and the team discovered that the auditorium plaster ceiling was in a state of deterioration and would need to be repaired.

With the Opera House now back up and running, Herman‘s energy is focused on the Municipal Building strengthening, with a budget of $8.75 million, and the management of the designs for the refurbishment and fit-out. The budget for this next stage is subject to council approval.

“This is a bigger and much more complex project as the building wasn’t built as well as the Opera House.”

Herman says if it hadn’t been for a decision by Hastings District Council to enter into an early contractor agreement with Gemco, there almost certainly would have been a budget blowout.

The arrangement was quite unique for a council, differing to the conventional approach where a project is put out to tender for a fixed price and carries the greater risk of costly variations and ultimately a budget blowout.

“With buildings like this it is very hard to predict what’s going to happen and this puts pressure on the budget and build programme, so it was refreshing to see council enter into an early agreement.

“We were able to do a lot of the physical investigations at the design stage, to check what we assumed was correct or not and then make changes accordingly, with input and understanding of those involved in the construction.

“For example, we could see if beams were actually where we thought they were and if not, we then had a process to deal with it and not run into extremely costly variations placing the budget under constant pressure.”

Herman says bringing a strong local business presence together on the project was also a huge success, with over 90 percent of the businesses based in Hawke’s Bay.

“These businesses had a vested interest in the project and took immense pride in their roles.”

Community support drives investment into doors reopening

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The redevelopment of the Opera House precinct, now called Toitoi – Hawke’s Bay Arts & Events Centre, is one of the largest construction projects council has been involved in for many years.

The Opera House has played an important role in the community since 1915. It brings our people together to celebrate, to be entertained and to enjoy each other’s company. That’s why the community fully supported the redevelopment, they recognise that the complex is at the heart of our community.

After six long years of closure, we will be able to watch and enjoy our children and grandchildren dance and sing as families have done for the past 100 years. We will again enjoy national and international performing arts and most importantly, we will have a place to discover and develop our very own local Hastings talent.

Hastings is alive. We are seeing a huge rejuvenation of our CBD with many new businesses, retail, hospitality and professional

From left Scrapit HB owner Des Bristow, foreman Tim Knight and Hastings mayor Sandra Hazlehurst with the trowel that was found in a safe at the Opera House.

services establishing or relocating. We will also see our first hotel open in the CBD and this will complement the many events that Toitoi will host, including regional, national and international conferences.

For the first time in its history, Hastings will have a purpose- built events venue – Functions on Hastings. The functions venue will host up to 600 people for conferences and special functions.

Toitoi will bring the heart and soul back to Hastings and create an arts renaissance as well as ignite a new era of vibrancy and prosperity for our district.

Encore for build team

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Gemco Construction manager Eddie Holmes will know how good a job the team of over 100 tradespeople has done when he sits down to enjoy one of the 30-plus shows scheduled for the Hawke’s Bay Opera House stage in 2020.

Eddie has been on-site in a porta-office since 2017 and when the project is fully completed with the handover of the Municipal Building, he will have been leading the project for over four years. It will bring down the curtain on what will be the longest, largest and most complex projects of his career.

The first two stages are now complete with the opening of the Opera House, which was first built in 1916, and the new multi-use venue called Functions on Hastings (formerly the open air Plaza building).

For Eddie, he’s seen the Opera House reemerge from a dark, wet and cold building to an enhanced version of its former splendor.

“I would come in during the early days of the rebuild and unlock the doors to a dark, damp and spooky building. The walls were running with water, the seats were moldy, it was like a freezer, and the early stages of the strengthening work did nothing to improve it, it just added dust and noise to the equation,” Eddie says.

Life has slowly returned to the Opera House, which has been strengthened to 75 percent of the Building Code. It’s been carpeted and painted throughout, including significant repairs to the failing ornate plaster ceiling and surrounding detailing. The stage floor structure has also been strengthened and new toilets and refreshment bars have been built. Many areas have been returned to their former glory, or as near as possible, while incorporating the upgrade and ensuring the building remains functional.

What hasn’t changed is the buildings’ acoustics. It’s still one of the best opera houses in the Southern Hemisphere.

Eddie says that after two-and-a-bit years of hard work by the Gemco team and all of the subbies, the character and personality of the building have come back to life.

“When we reached the stage of final clean-up and rebooted the air conditioning, it was a real milestone. I now find it a really stimulating building to walk through, particularly when I go through to open up and turn the lights on in the morning while all is quiet and nobody is around. It’s very invigorating.”

Like many, Eddie can’t wait to sit down and enjoy his first show. He is in no doubt that the council made the right decision to invest $32 million (including $23 million of council funding and $9.5 million of external funds) in this magnificent Category 1 classification heritage building.

The initial brief was to strengthen the building to 75 percent of the Building Code but the work was to be done in

such a way that nobody would notice the difference. Partway through the project, the decision was made to increase the initial investment and give it a ‘50-year makeover’ at the same time. This has resulted in a truly amazing outcome.

“The timing is perfect for the Opera House to reopen. We have so many entertainment options these days with online streaming services and hospitality options but I think there’s a real demand by the public to attend live shows, and what better way to enjoy a live performance than in either the Opera House or the new function facility.”

To get to the end of the first stage has been one of the biggest challenges of Eddie’s career, but it’s also helped prepare him and his team for the next stage, which he says is more difficult: the rebuild of the Municipal Building.

“Nothing is harder than this sort of work, it’s a logistical challenge. You can preempt as much as you like but you don’t actually know what you’re dealing with until you open it up and get started. It has been an extremely hard, dirty, noisy job in a dingy environment, but because of the unique character of the building and a remarkable team to work with, we got stuck in and pulled it off, and surprisingly, not one person asked to be moved off the job to another.”

When the entire Toitoi complex is finally revealed in 2021 and the credits start rolling, Eddie says there will be many unsung heroes who can celebrate the roles they’ve played in breathing new life back into Hastings’ CBD.

“We have had some people put in outstanding commitment. There’s been some very clever people involved and everyone has bought into the project, from the project leads to the Gemco team to all of the subcontractors. A huge thanks to all!”

Strong foundations – The efficient and eco-friendly building solution

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A construction boom has been sweeping across Hawke’s Bay over the last few years and it’s not predicted to decline any time soon.

As hundreds of new houses are needed due to population growth, there’s greater pressure on builders to complete projects more efficiently as well as adopting greater sustainable building products and practices.

This all starts with the foundations, and experienced businessman Mike Teddy of MPT Concrete, and Cupolex Solutions has been using the proven foundation flooring solution, Cupolex, since he was first asked by a homeowner to source it 16 years ago.

Not only did Mike find the product, he became an exclusive reseller for the lower North Island and has since acquired the New Zealand license to manufacture and sell Cupolex nationwide. Cupolex is a cost-effective, eco-friendly alternative to a polystyrene/raft foundation, using Italian designed structural domes to replace hard fill or polystyrene concrete formwork.

When Mike first started using Cupolex the domes were manufactured in Italy, then Australia, now here in NZ, but once he’d bought the license and dies, he went local and partnered with Napier plastics manufacturer NTD Plastics.

“It’s great that we can now manufacture 75% of the components in Napier; it was important to me that we looked to source local and it’s been great to partner with NTD Plastics,” he says.

Mike now sells Cupolex to like-minded and independent concrete contractors throughout New Zealand and to construction firms such as Gemco, as well as supplying to the likes of building supplies company ITM and Mitre 10.

Gemco general manager Chris Olsen says Cupolex has become their flooring system of choice.

“We first used it on a housing project and we immediately found the ease, cost efficiencies and programme advantages resulted in a quicker and better product for the client. We now endeavour to use it everywhere we can as it has proven to be a good addition in an always changing and challenging market for costs and programmes,” Chris says.

The dome designs aren’t new; they were invented in Italy over 20 years ago and have become a world-proven solution, predominantly for residential housing but now also starting to branch into commercial buildings.

Mike says the benefits of the dome system are many, including providing cost savings in concrete, steel, labour and freight as well as being a virtually zero waste solution. With a
global emphasis on the environment, all components are manufactured from 100 percent recycled/recyclable materials.

Since the Christchurch earthquakes, there has been greater focus on a building’s foundations, with geotechnical engineers designing the foundations and recommending the type of foundation system to use.

“Cupolex is a customised site-specific design and takes into consideration the unique ground dynamics, bearing in mind liquefaction and sheer twists, and Cupolex is pretty much a floating floor system.”

Mike says it’s not about supplying Cupolex and leaving the concreter or builder to it. “We’ve got a really good support service for the entire process and we put a lot of effort into training and showing how to use Cupolex.

“We’re not just selling a product. MPT Concrete use Cupolex on 99% of jobs so we have learned a lot and are only happy to pass on our experience to support our product.”

Cupolex is listed on www.productspec.co.nz and www.smartspec.co.nz.

Visit www.cupolex.co.nz 

Moving to the Cloud isn’t enough

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Over the second half of the last decade we have seen the progression and growth of the tech sector all but explode and stamp its claim on the world’s business landscape. These developments have revolutionised the way that businesses operate and streamlined many of their day to day processes.

Accountants may appear to be on the endangered species list in this era of rapidly-increasing automation, but we’re finding that as Business Advisors we are adapting to the changing landscape, working diligently to stay ahead of the curve and thinking differently to stay relevant in order to assure demand for our services in the future….

The business landscape has gone through such significant changes over the last decade, particularly regarding the utilisation of technology in even the most basic of businesses that it wouldn’t be surprising to envisage a period of stability or cooling-off as business operators come to grips with the raft of tools now available to them – however this seems very unlikely. It is within the next decade that we are likely to see which businesses can thrive in this new landscape and those which may fall by the wayside through their own inactivity or inability to embrace change.

The really exciting element from our perspective is how Hawke’s Bay has managed to position itself at the forefront of this change. Hawke’s Bay is now seen as a booming business economy that has the required elements to expedite the achievement of business goals. This teamed with the Bay’s reputation for true work/life balance has ensured that the New Zealand business community stands up and takes notice of our little slice of paradise. This as well as our own local success stories such as the Napier Port, Ahuriri Tech Hub and the Airport expansion project has enticed a range of business investors and opportunities to our region.

Dynamism is a fundamental component of many successful businesses and the required strategy can dictate short timeframes for growth, sale & purchase and market penetration

opportunities. This means we really need compliance and reporting to run like clockwork, with the data available at our fingertips. Neither we as advisors nor you as business owners can afford to waste time on historical results.

One change by product is how we work to align the current business environment, technology and new generations entering the workforce together. This is a fundamentally important investment for every organisation, and our clients value good advice around what works and what to do when it doesn’t.

Futurists talk of the threat that Artificial Intelligence poses to so many businesses by manipulating the way in which we conduct our business. We see this advancement and evolution

signalling a somewhat inevitable move towards robotics and automation taking over the logical, predicable and monotonous tasks within society. And while the further development and future influence of AI is uncertain, it is another element of the change cycle that businesses will need to take heed of and build into their strategic planning in order to stay relevant.

To address these changes Businesses must embrace cloud- based accounting software in all its glory. Harnessing the cloud for efficient accounting compliance is not enough. The real benefit is in utilising apps and add-ons to provide privately- owned businesses with a broader, more integrated solution that is the envy of larger corporates. It is likely that within the first half of the next decade we will see who can succeed in taking their Business to the next level and those that have been weighed, measured and found wanting.

Which one is your business??

New themes emerge in RMA changes

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An emerging theme in our sector is that there are more matters to be considered – and more to be considered earlier. An inevitable outcome is that things may take longer – meaning its even more important to be aware of the necessary inputs and to set realistic timeframes.

Some of the main changes we’re observing relate to archaeological matters, cultural values and hazards. None of these are necessarily a bad thing, however – it’s just an element of change.

Section 6(h) of the Resource Management Act requires all persons exercising functions and powers under it to recognise and provide for the protection of historic heritage from inappropriate subdivision, use, and development. This has generally been given effect to by District Plans and property information identifying the presence of archaeological sites, for which the Heritage New Zealand Pouhere Taonga Act 2014 sets out a framework for allowing and managing works that may affect such sites.

There has always been an overlap between the two Acts, and while authorities in relation to archaeological sites are sometimes obtained prior to or as part of resource consent applications for larger projects, it is becoming more common for this to be focused on for smaller projects as well – requiring greater inputs up front of a process.

This has pro’s and con’s. On one hand, greater certainty is obtained for all parties, but on the other, gone are the days of stepping through the process one regulatory step at a time and managing cost as you obtain more certainty. Whether the RMA actually envisages the Heritage New Zealand Pouhere Taonga Act 2014 being implemented concurrently seems to be a mute question, as the emerging theme is that if it needs to be done at some point, it needs to be done now.

It’s a slightly different situation with cultural impact assessments, but there is again an emerging theme that these are beginning to be required on what would have been considered less complicated applications. Again, I’m not suggesting this is a bad outcome, as in most cases they reveal some pretty interesting findings and matters that are worthy
of consideration and management.The message is that inputs previously associated with only larger scale projects are becoming common day requirements.

As we’re becoming more aware of different natural hazards, this is another topic which is requiring a lot more consideration earlier. Again, not a bad thing considering the idea is to avoid making decisions that could put people, property and infrastructure in harm’s way. However, while the technical inputs are based on very hard science, there is subjectivity around the parameters used to generate models and predictions, and a lot of time can be spent between designers and auditors in agreeing on the inputs and being comfortable with the solutions.

So, the message is there are actually a lot more things to consider earlier now. This shouldn’t justify just wanting to know things for the sake of knowing them, but where reasonable, it’s a transition we all need to make, meaning projects need to be well scoped and momentum maintained.

As a company we have increased our capacity and are continuously reflecting on and responding to changes in the industry and have developed processes to identify necessary inputs early so that key areas can be refined and focused on and certainty obtained so that costs and timeframes can be managed as best as possible.

2020 shapes up as a stellar year

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This year is shaping up to be another stellar 12 months for commercial and industrial property in the Hawke’s Bay. Investor confidence remains high and market activity is strong on the back of an outstanding 2019.

Yields are likely to compress further on the back of record lows in 2019. The sale of the 19-unit Harvest Lodge Motel in Havelock North for 4.54 per cent last year was the sharpest yield in history for a Hawke’s Bay commercial property. While not all properties will attain such returns, we see yields in the 5 to 7 per cent range as representing the new norm, given the continuing low interest rate environment and strong investor appetite.

The Hawke’s Bay industrial sector is expected to continue its strong run in 2020, buoyed by the thriving horticulture sector. This trend is exemplified by the sale in 2019 of a 6.3ha industrial property at 22 Irongate Road, Hastings, which will be transformed into a $30 million new pipfruit facility. This was the largest industrial land transaction in the Hawke’s Bay last year.

Havelock North will continue to be a focus for growth, particularly in the office sector. Numerous investment advisory and management firms have established offices in Havelock North in recent years, putting the town in a position to become a regional financial hub in the future. The location is attractive due to its relatively affluent residential population and its proximity to key markets in Hastings and Napier. Strong horticulture and tourism sectors are also adding to growth.

The future of retail continues to be augmented by the tech sector, rather than disrupted. Tenants benefit from a wide range of apps to assist them with business, focusing on customers, staff and productivity benefits. Owners benefit from better understanding about property management and facilities management requirements. Investors get a better understanding and assessment of risk and potential future benchmarks.

Key to all of this is access to data and information. The advent of 5G in New Zealand will help transmit significant amounts of raw and visualised information at an immense pace. Connectivity will be a major game changer over the next few years.

To assist our clients in this space, Colliers International has been running Colliers Proptech Accelerator to create solutions, shape technologies and find opportunities.

Commercial property transaction volumes in Hawke’s Bay across all asset classes are likely to remain buoyant in 2020. Colliers had very strong years
in 2018 and 2019, resulting in our Hawke’s Bay office being named Small Commercial and Industrial Agency of the Year at the 2019 REINZ Awards. Commercial property investor confidence was 23 per cent net positive in Colliers International’s latest survey, which is line with national averages over the past two years.