The National Business Review / July 14, 2017 17 Spotlight on Special Report Tauranga Tauranga has ballooned over recent years, overtaking Dunedin as the country’s fifth largest city and more growth is still to come. Quite simply, Tauranga looks like the future. More than $700 million of commercial property has been approved for the next five years and tourists continue to choose the destination, spending plenty. Big-city hassles are no doubt coming, but right now, the weather seems fine. Smart water use is Tauranga’s next big-city problem Nathan Smith “Compared to much of New Zealand, increase industry revenue to $3 billion by we’re not in too bad a shape. But the 2025, with export revenue sitting at close Tauranga’s declining water quality and warning signs are there. Nitrate levels are to $1 billion. Avocados are the next larg- quantity are ringing “alarm bells” as the increasing in our surface water resources, est sub-level sector by value, representing city’s urban areas expand and compete for for instance, and that should be sending approximately 10%. water with horticulture and agriculture. alarm bells. We need to be looking care- Agribusiness is important business in The pending water bottleneck emerg- fully at how we’re managing our land. the wider Bay of Plenty, underpinned by ing in Tauranga was inevitable because, as “The Western Bay of Plenty, in par- the region’s climate and natural resource small cities grow, they attract big city prob- ticular, has some highly productive agri- base. In 2014, combined exports for dairy, lems. Traffic size balloons, house prices cultural soils and kiwifruit and avocado meat and horticulture were $2 billion. rise and resource management becomes orchards, along with a number of other The Toi Moana Bay of Plenty Economic a central issue. Water management is now crops, that are using greater amounts Action Plan points out how water is a becoming a key issue for resource plan- of irrigation. This is putting a strain on major constraint for the horticultural sec- ning in the region. groundwater resources but also surface tor. In the eastern bay, irrigation schemes Tauranga’s population is forecast to WATER PRESSURE: As Tauranga grows, its water resources. At least theoretically, will be required to assist in unlocking double by 2051, placing increased pres- fresh water resources will be under strain these resources are over-allocated right in excess of 1000ha. And in the western sure on the way various councils manage now and consents have been issued that bay, the tension between water to service existing infrastructure and levels of ser- already under pressure and, as a result, exceed the capacity of those water systems urban growth and horticultural productiv- vice. According to a 2009 study by GHD, quality is declining in some water bodies. to accommodate,” Mr Murray says. ity is an area of considerable concern. the city’s projected water demand by 2051 Chalice Consulting director Warwick The region is also seeing an increase in will be 109,200cu m a day and either addi- Murray, who before stepping over to Who’s using the water land use intensification. This is particu- tional water sources and treatment capac- industry worked for the Bay of Plenty The Bay of Plenty’s horticulture sector is larly significant in the western bay, where ity, or a reduction in peak demand, will be Regional Council and is the agribusiness well-established, contributing just over 3% maintaining productive land is competing required to meet it. action head for the Bay of Connections of the wider region’s GDP. with urban growth. Overall, the Bay of Plenty’s water quality Economic Action Plan, says the GHD pre- Kiwifruit represents the largest sub-sec- “Practically we know, at least with is considered to be good based on national diction remains accurate and the region tor at approximately two-thirds of horti- standards but freshwater resources are needs to better calibrate its water usage. culture in the region. Zespri’s strategy is to Continued P18 Increase in primary National avg. Sustainable retail Primary catchment spend population floorspace primary $ catchment retail 42% by 2033 2X growth 40% catchment by 2033 155m leakage 2017 PAPAMOA, TAURANGA’S LARGEST & FASTEST GROWING RETAIL With a population that’s growing at twice the national average, large areas of residential land in close proximity and annual building consents at double the greater Tauranga average, Papamoa represents a high growth cell within one of the country’s fastest growing regions. It’s a retail hotspot and Papamoa Plaza sits at the heart of this transformation. Be a part of the retail future of Papamoa at Papamoa Plaza. Contact Tim Raateland, [email protected] or call 03 548 0175 or 027 244 9141. tinline.co.nz 18 SPECIAL REPORT: SPOTLIGHT ON TAURANGA July 14, 2017 / The National Business Review The National Business Review / July 14, 2017 SPECIAL REPORT: SPOTLIGHT ON TAURANGA 19 PAPAMOA: Infometrics predicts its population will be up 74% by 2023 Papamoa to outgun Tauranga on population front Sally Lindsay facilities are mainly located in development is also planned trend that has been largely self- businesses landbanked before next eight years, it gave Tinline mix is the most important part sale of the 20-store shopping the older Papamoa Beach area, around Papamoa. However, the reinforcing in terms of attracting the suburb became desirable. the confidence to develop the – if you have the right tenants centre to a group of Tauranga A strip of land 25 kilometres long with fewer services available fur- area is probably less well-sited more people to the city. Papamoa Plaza has an centre further.” it encourages people to shop developers in December 2015 and about one kilometre wide ther east. than Tauriko, for example, for Tauranga City Council’s focus expansion under way on 8ha locally.” for $5.1 million. is one of the country’s fastest- Infometrics says the “ribbon- freight and logistics-related on ensuring new residential of undeveloped land. Nelson- Looking for ‘right’ tenants Mr Smith says Tauranga This group then on-sold growing areas. like” nature of growth will make activities, as it lies on the side of development is accompanied based family company Tinline The plaza covers 22,000sq m is under-shopped. “Globally, Fashion Island for $6.25 million Papamoa has transformed it more difficult to justify a single Tauranga that is away from the by employment opportunities bought Papamoa Plaza in 2013, with 45 shops and the extra retail retail through shopping centres to Cotton On, making $1.5 mil- from a rural and holiday desti- large urban hub within Papamoa “golden triangle” growth areas of within Papamoa suggests busi- refreshed the tenancy mix, will add four or eight large for- is about 55% of total spend, lion. Cotton On is in the process nation to a suburb of Tauranga East; instead, retail and other Auckland and Hamilton. ness and job growth will take added 4000sq m of extra retail mat stores. New Zealand is about 35% and of reinvigorating the centre. over the past 20- 30 years and its services are likely to be based on place over the medium term, space and is about to include “We want the right tenants, Tauranga is about 28%, so there In between Papamoa Plaza population growth is expected a number of smaller neighbour- Attracting more people Infometrics says. 5000sq m of large format store not necessarily the ‘right now’ is still an enormous opportunity and Bayfair shopping centre at to outstrip all of the city by 50% hood centres dotted throughout The success of the Port of With the attractiveness shopping and a dining precinct tenants. The tenant mix has for more retail space which ties the Tauranga end, a $10 million within 11 years. the area. Tauranga has coincided with of Papamoa as a place to at a later stage. changed over the past four years in with the property economic centre featuring a mini-super- Infometrics’ economic analy- Over the longer term, as strong business growth in the live comes pressures on housing Plaza manager David Hill says and we have identified areas we research we have done.” market, café, restaurant and bar sis predicts Papamoa’s popula- residential construction spreads city, while Tauranga’s lifestyle and business but completion of extensive demographic research are targeting. The changes we Meanwhile, more retail devel- is under way on land fronting tion will be up 74% by 2023, further east away from the older has proved a strong drawcard the Tauranga Eastern Link last before it bought the shopping have made have meant retailers opment is on the drawing board. Papamoa Beach Rd. The retail making it one of the country’s Papamoa Beach area into the Te for families. The spread of year has helped by providing centre revealed more than 50% are up 20-30% on the same time Fashion Island, across the precinct is part of Coast Papa- top population growth areas. Tumu area, there may be scope population growth across all more direct access into the city of Papamoa residents’ retail last year,” Mr Hill says. road from the Plaza, was bought moa Beach’s master plan and is One of the challenges for for a more significant retail age brackets has seen a major and eastern Bay of Plenty. spending is outside the suburb. “As happens in every other by Australian-based brand Cot- designed to service the area and growth in the Papamoa area centre to be developed, the eco- expansion in Tauranga’s social Land availability at more “Because 50% is spent outside place in the world, all our ton On a year ago, dipping its reduce traffic congestion.