Tentative step forward for Te Ara Wai

Detailed design work is set to begin on Te Ara Wai, a New Zealand land wars museum planned for Te Awamutu.

But this next stage of work will be funded by the government and not Waipā ratepayers.

Waipā District Council secured $5.24 million from the government’s Better Off Fund in December last year. A portion of that $1.7 million will be used to complete detailed design work and seek resource consents for the old Bunnings building in Arawata Street.

Unless that work is done by June 2024, Council has been told it will not be eligible to apply for critical government funding from the Ministry of Culture and Heritage. Nor would other external funders be willing to commit to the project.

The decision made by Council today to push on with Te Ara Wai follows an independent review of the project. The review reassessed the scope and phasing options, operational budget and potential funding support. An economic impact assessment, based on just visitation from outside Waipā and the Waikato region, said Te Ara Wai would create close to 20 jobs and add an average of $1.985 million per year to Waipā’s gross domestic product (GDP).

The review also reassessed costs with councillors advised total estimated costs now sit at $33 million. Council committed $23.5 million for the project build in its 2021-2031 Long-Term Plan, with some funding to come from asset sales. Of the $9.5 million funding gap, $2.95m from external sources has already been secured, leaving a funding shortfall of $6.55 million.

Mayor Susan O’Regan said a “deep dive” into the project was crucial given the economic outlook, rising costs and the changed external funding environment. She acknowledged some councillors were “rightly” questioning timing and costs but said, “no-one believes the project does not have huge merit”.

“Te Ara Wai is really important at both a local and national level and will tell a crucial New Zealand story that is largely untold. But very importantly, this is a long-planned major investment for the district that underpins a much wider economic picture for Te Awamutu and Waipā,” O’Regan said.

“Every single councillor is acutely aware of rising costs and a changing economic landscape. So let’s go into this with our eyes wide open, before we are past the point of no return. That’s why the review was undertaken and is why we are staging this project carefully. Te Ara Wai is not a done deal yet.”

O’Regan stressed completing the next phase will have no impact on rates.

“Without this work, we’ve been told categorically there is no change of securing further government funding support. So while we have said yes to the design work, that’s only on the basis we have hold-points in place for us to reconsider next steps. And in fact, there won’t be any next steps if external funding is not secured – it’s that simple.”

Group manager – customer and community services Sally Sheedy said recent conversations with partners, stakeholders and potential funders, including Waikato-Tainui, had been positive. One new funder had come on board immediately, committing $250,000.

“There is a long way to go, particularly given this project has largely been on hold for the past 30 months. There is a lot more work to do, and a lot more external funding to secure.”