Future of city skyline uncertain | Bay of Plenty News | Local News in Bay of Plenty

The future look of Tauranga CBD is uncertain as more than 100 building owners are faced with carrying out major strengthening work to meet earthquake safety requirements.

The requirements are set to spark a flow-on effect in the next 10 years as landlords face difficult and expensive decisions about whether to carry out the work - and tenants could choose not to renew leases in favour of moving to newer buildings.

Tauranga City Council last year named 110 buildings in the CBD that required strengthening work - most within a 10-year deadline although some are working under a five or 15-year deadline.

Rob Wickland, the council's building manager, said three or four of building owners had already undertaken the work but the majority were taking a wait-and-see approach.

Mr Wickman expected more landlords to do the work as they could afford it - or otherwise make the decision to demolish.

None had so far been demolished but the council was expecting a demolition consent application from a building owner on The Strand in March.

He did not know if any tenants had been prompted to move out of their buildings after it was revealed they needed work to be regarded as earthquake safe.

The Building Act requires existing buildings to score at least 33 per cent of Building Code New Building Standard in seismic performance.

But Mr Wickman said that figure was likely to change, with some speculating that the requirement could go as high as 67 per cent.

The Earthquake Commission's findings over the Christchurch earthquake could change the playing field, and the Government could make a change in legislation.

Many Tauranga building owners could therefore be waiting for more certainty before proceeding with strengthening work, Mr Wickman said.

The potential effect of these requirements on the CBD was "huge", he said.

"It's going to take a number of years and there's a lot of cost to [building owners] for the upgrade.

"Until we get those assessments in, we don't know [what the wider implications will be for the city].

"Every earthquake they have in Canterbury helps [in] making people more aware."

The council is now working towards completing assessments on "hundreds" of buildings in commercial areas outside of the CBD.

Tom Roper, of Zariba Holdings, one of the city's biggest commercial downtown property companies, said the situation was "still a work in progress" and "nobody really knows what's going to happen".

"Really, everyone is just wanting to see what fully comes out before we react. That's probably the best way to handle it.

Financially, it would not be worth reinforcing some buildings, Mr Roper said.

"It doesn't probably put that much more value on it, or the tenants can't pay the extra rent."

The costs of strengthening buildings could be passed on to tenants, meaning higher rentals.

There was also the potential cost of moving companies who opted to move out of affected buildings, Mr Roper said.

Tauranga Chamber of Commerce chief executive Max Mason said while individual landlords might see the requirements as "a costly threat", in the long term the changes could prove to be positive for the CBD as a whole.

Mr Mason said with a co-ordinated approach, all stakeholders could work together to "plan a new CBD that meets the demands of the future".

"Possibly, if there is a lot consolidation of sites, we could have more flexibility in terms of designing a CBD that allows for greater ability for multi-use so people can work, live, play and study there.

"It will need good leadership and because of all the different parties' interests."

One of the buildings affected by the requirements is that leased by the Bay of Plenty Times on Durham St. A detailed engineering report has shown a seismic performance score of 12 per cent of Building Code New Building Standard - well below the required 33 per cent.

The property owner has requested an engineering report on what would be required to bring the building up to scratch - and newspaper owner APN may vacate the property prior to the expiry of the lease.

APN was actively looking for alternative premises for its staff, APN acting group chief executive Rick Neville said.

The company plans to carry out safety audits and take immediate steps including fixing seismic restraints on equipment and furniture, personal safety training, advice on "safe places" within the building, advice on emergency supplies and identification of hazards.

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