24 February 27, 2015 / The National Business Review Special Christchurch – Report Dreaming A New City Canterbury’s earthquakes help shape the nation Chris Hutching The fourth anniversary of Christchurch’s earthquake is more than a local event. It has shaped the nation – from the initial wave of emotional and financial support from Kiwis in every town and city, to the explosion of job opportunities, revaluation of property, reshaping of insurance, and rebuilding by corporations. Residents are still coping with the momentous events of February 22, 2011. Designs for a permanent memorial to the 185 people who were killed are being evaluated. Like much else about the government-controlled elements of the rebuild it’s taking a long time, with the memorial construction expected perhaps by 2016. Most of those who died were busy at their desks doing what they were sup- posed to be doing, supporting their families, getting ahead on education cours- es, shopping, clinching financial deals, travelling on a bus, or crushed by rocks falling from a cliff. It was shocking to see injured and distressed people, and heartening to wit- ness heroism of ordinary people. The immediate aftermath was a bit like camping. The novelty wore off after days without running water, showers, loos, electricity. Neighbours worked together to clear the mountains of liquefaction silt, helped by farmers who brought tractors and trucks to town. Things slowly improved although the 14,000 shakes took another year to settle down, with the last two biggest ones in June and December 2011. Four years later, homeowners continue to battle EQC and insurers. At the same time, a wave of rebuild workers has flocked to the city, creating a cosmopolitan atmosphere. Engineers, assessors, architects fly in from around the country. High-vis clothed tradies in the local bars gabble in Geordie or Irish accents. More sedate hard working gangs of Filipinos occupy houses together, quietly getting off to work in the mornings, sometimes exploited by events and the occasional fly- by-night employer. Much of the city now resembles a construction site, driven by the private sector, with more cranes than Auckland. Parts of the old city centre still look like a rubble wasteland in the Crown- controlled areas ahead of the construction of anchor projects, testament to the land clearance. The razed eastern suburbs also amaze visitors on the 7km drive to the seaside suburb of New Brighton. Thousands of houses are being built to replace them in new subdivisions such as Prestons where dozens if not hundreds of homes are being built at the same time. And rebuilds are well under way with many completed in older city suburbs. The Canterbury Earthquake Recovery Authority might more truthfully have been called a demolition authority. It is still overseeing the last 3000 from more than 8000-odd red-zone homes (about 20,000 homes have been destroyed altogether) and a much smaller number of central city commercial properties yet to go. While the over-arching role of the Crown via CERA was probably necessary, questions remain about its speed in rebuilding Crown anchor projects like a convention centre and other amenities. Whatever the future role of CERA, the commercial renaissance of the central city is a reality as new office towers arise and tenants sign up to lease them. [email protected] Inside P26 P28 P40 ‘Spectacular’ Saving Real estate plans for CBD but Christchurch’s agencies make hay, red flags waved heritage stone by offer new services stone 26 SPECIAL REPORT: CHRISTCHURCH – DREAMING A NEW CITY February 27, 2015 / The National Business Review ‘Spectacular’ plans for CBD Holmes Consulting Group but red flags waved Designing Calida Smylie when they are at capacity and only take on projects which they know they can do well. Christchurch’s central business district was almost “To be honest it’s a challenging environment to be annihilated by the earthquakes and four years on working as a professional in, but it’s quite enjoyable an enduring is nowhere near restored. But those close to the because it’s highly stimulating and varying work. I’d mammoth rebuild efforts say while original build time rather be here than Auckland, that’s for sure.” estimates were wildly optimistic, the city is on track to Jade Kirk, director of geotechnical engineers Kirk becoming the most liveable in Australasia. Roberts, says there has been a good run of CBD There are several layers to the redevelopment but projects, but predicts a slowdown. the key projects for precinct developments are all in “There just aren’t enough tenants ready to come legacy the pipeline to be completed over the next 10 years. back into the city, which might be because the According to the Christchurch Chamber of Commerce, infrastructure isn’t all in place yet. And because there is about $10 billion worth of commercial building costs are high, investors are targeting A-grade FORSYTH BARR HOUSE: One of a handful of buildings to be replaced in the central city and most of tenants when these make up about 10% of the market. high rise buildings to survive. It will soon become a We’ve been in Christchurch for nearly projects in our own backyardget the that in the CBD, where about 80% of buildings were “If you don’t have the right tenants, cost structure Crowne Plaza hotel destroyed. and infrastructure for a building then you can’t get the 60 years, applying our creative design world-leading thinking and technology The CBD may not look like much now, with cranes project off the ground, and that criteria’s the same as excellence to complex structural they deserve. Across Christchurch, dotted around dusty, noisy building sites, before the earthquakes.” engineering projects all over our great New Zealand and the world, Holmes More hotels open as and ornate brick facades still propped up New challenges thrown up by the by red packing crates, but Chamber earthquakes makes it crucial to build city.Now,we’reright at the heart Consulting Group is helping to create of Commerce chief executive Peter durable yet cost-effective structures, of the rebuild, ensuring important an enduring legacy. Townsend is enthusiastic for its which means more innovative operators around the future. thinking such as designing stone “There’s a five to 10 year horizon columns to strengthen liquefiable in terms of getting the central city ground, he says. country enjoy hot back up to scratch, but in the interim it will become a very liveable place as Reality trumps optimism it is rebuilt. We don’t have to wait for every While naysayers may grumble about trading last block to be put into place before it’s a good lengthy building times, Mr Kirk thinks the CBD place to be. What I’ve seen of the designs rebuild is progressing at a reasonably good of the central city are spectacular. We’re pace. “I think the hypothetical pace Chris Hutching getting some great private investment set by the Christchurch Earthquake into our city with very well-designed Recovery Authority and the If hotel operators thought they were busy in December – they were. buildings facing our river.” government a few years back was Visitor arrivals to New Zealand were up 5% to 402,500, compared with Mr Townsend goes as far to say unrealistic. There was just no way 02 December 2013, Statistics New Zealand says. It was the highest ever recorded the earthquakes have been good for we could have met all the demands for any month, with China continuing as the biggest source of growth, with the city as it has allowed the CBD to of what a city needs in such a short be reimagined into something more time with the amount of resources and 39% more arrivals from China than in December 2013. 04 All the main centres have benefited but South Island tourism has enjoyed a liveable. expertise we have in New Zealand.” The commerce chamber’s Mr Townsend bounceback as a result. And, of course, tourists need places to stay. “The total rebuild costs, including cost agrees people were “hopelessly optimistic” A majority of new hotel announcements, if not the majority of rooms, have escalation and betterment, look to be now at which meant the rebuild scale was come from Christchurch in recent months as the city rebuilds capacity follow- $45 billion. We’re going to recreate a city which will be a fantastic proposition underestimated. “It will take a lot ing the 2011 earthquakes. for our people. It will take a bit of longer than we thought, and that Christchurch airport is a gateway to tourism attractions throughout the time, but it’s all looking very exciting doesn’t mean we should stand aside South Island. But for a while after the earthquakes there were few choices of already.” and cry into our handkerchiefs, accommodation. Hotels that survived enjoyed their best occupancies for years The rebuild process has often been because we are involved in New but the limited capacity was hampering business and tourism. stymied by litigation, and Christchurch Zealand s biggest ever economic It was only a matter of time before existing hotels added rooms and inner has been divided at times over what building programme. city hotels re-opened after cordons were lifted should happen to damaged icons such “It’s all about opportunity here and 01 03 05 In addition to those already open for business there are several new ones in as the cathedral. But heated debate is the economic indicators are good. We the pipeline. part of the healing process, Mr Townsend are spending $100 million a week every The former Forsyth Barr building is to become the new Crowne Plaza Hotel CBD DEVELOPMENT: says.