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The draft City Plan – what are the issues?

19 August 2011

While there is much to be lauded, if the Council imposes too many restrictions on central city stakeholders, it could run the risk of large empty sites languishing amid a piecemeal rebuild. The major focus should be on making sure that development fills in the very significant gaps within the CBD.  

While the design parameters driving the Plan may on paper lead to a premium shopping area with pleasant park-like surrounds, if this comes at the expense of being too expensive in comparison with other retail opportunities – then the move back to the city may be slow.

The onus is on those keen to return to the CBD  (and research from Colliers International shows an overwhelming majority do) to carefully review the draft City Plan and its implications.

The Council may find that CBD tenants shy from the added costs of the building in the CBD. For instance, the height for the ground floor of buildings in the central city core is prescribed at 4.5 metres, probably driven by the need for future-proofing. But do retailers want to pay for what will effectively be empty space?

Concerns

Potential issues of concern for CBD retailers, as well as for commercial property owners, developers and tenants are:

Retailers

• The zone you are in will determine your ability to successfully establish your retail business.
• Smaller retailers will be helped into the central city courtesy of proposed new rules and incentives.  In particular, smaller retailers (maximum floor area of 450^m2) are directed to establish within the central city retail core and fringe area (with an exception for department stores and food and beverage outlets). 
• A “primary retail core” will focus on the traditional Cashel Mall/High St triangles with a “secondary retail core” north of Cathedral Sq. 
• Large format retailers will face significant hurdles within the central city retail area unless located within the southern fringe retail area, where there is a minimum gross leasable floor area of 450^m2.
• An incentives package will be available but only for those within the “primary retail core”.   
• The proposed regulatory framework is designed to prevent the establishment of ad hoc pockets of retail activity or the establishment of a further retail centre outside the CBD.

Landowners and developers

• Slow vehicle/pedestrian core.
• Caps on parking and parking location requirements (carparks cannot be within 10 metres or road boundary, and Council carpark buildings likely to be outside central city core).
• Maximum building levels/heights, and recession planes.
• Requirement to gain a pass on new Build Green Christchurch Tool.
• Maximum retail space in central city retail core and fringe areas of 450m2 other than for department stores and food & beverage outlets
• Design controls.
• Active frontages and requirement to build up to the street.
• Minimum entrance requirements (one entrance per 10 metres of building frontage for central city core)
• Maximum number of access points.
• Seismic and building code upgrades for heritage buildings.
• Amalgamation mooted.
• Incentives for business moving back to CBD unlikely to greatly influence decision making of key long term tenants.

Tenants

• Tenants need to be sure incentives are drilled through to them and not to landlords.
• Incentives for Green not necessarily in interest of tenants.
• Minimal car parking possibly a disincentive for customers and clients to professional services firms.
• Height restrictions may push rent significantly higher; many tenants were only able to afford $150-180 per m² and were only paying this sum.  Far fewer will be able to pay the expected $400 rent per m². 
• As a consequence there may not be the influx of tenants needed for it to work. 
• Entertainment precincts especially for day / evening / late night hospitability.
• Certain retailers who need a large footprint may find it difficult to establish their business in the most heavily populated areas of town.  It may discourage investment of major stores.
  

For advice on any of these issues please contact partners Paul Calder, Juliette Derry or Paul Dorrance