Part B: Our work in detail

3 Economic development
​Whanaketanga ōhanga

The Council attracts and supports business activity; markets Wellington to tourists from New Zealand and overseas; owns and operates performance venues and conference facilities; promotes business, education and cultural links through sister city relationships; and provides free weekend parking in the central business district.

We fund these activities to attract and retain talent, grow the tourism spend and economic returns from events, and increase inward investment and exports.

These activities make Wellington a more vibrant place to live and improve residents’ quality of life, prosperity, identity and the opportunities available to them.

Key projects

City Growth Fund

This fund supports initiatives that will contribute to Wellington's economic growth.

The objective of the fund is to support projects, partnerships and programmes that contribute to the economic growth of the city. Specifically they will:

$2.4 million of funding is available in 2016/17 and it will be focussed on events, initiatives and partnerships.

For more information go to:
http://wellington.govt.nz/services/community-and-culture/funding/council-funds/city-growth-fund

Free Wi-Fi in the central city

CBDFree is a free-to-use, high-capacity wireless service, available through most of Wellington’s central city area. The network is used by large numbers of Wellingtonians as well as visitors to the city and helps support Wellington’s reputation as a technology and visitor-friendly city internationally. The Wi-Fi is provided by CityLink, a local Wellington technology company and $150,000 has been allocated to pay for this in 2016/17.

Business Improvement Districts

The Council adopted its Business Improvement District (BID) policy in March 2013. BIDs involve a local business community within a defined geographical area developing projects and services that support local economic development.

The Kilbirnie Business Network has undertaken a process to determine whether a BID should be established in its area and this culminated in a poll that showed majority support to establish a BID. A new targeted rate, raising $80,000, is to be applied in 2016/17 to commercially rated properties in the Kilbirnie BID area. Liability for this rate will be calculated as a fixed amount of $500 per rating unit, plus a rate per dollar of rateable capital value for any capital value over $1 million per rating unit.

Wellington Regional Economic Development Agency (WREDA)

WREDA is the new regional economic development agency combining the economic development activities of Wellington City Council and Greater Wellington Regional Council to advance the prosperity and liveability of the Wellington region. The new organisational structure for WREDA was finalised in late 2015 and during 2016/17 WREDA will focus its activities on making Wellington the most prosperous, liveable and vibrant region in Australasia.

Movie Museum and Convention Centre

The Council has agreed in principle that it will build and own a modern, purpose-built Movie Museum and Convention Centre on Cable Street, opposite Te Papa. The proposal was consulted on during 2015/16, and if the project receives final approval from Council and The Movie Museum Limited, construction of the Movie Museum and Convention Centre is expected to begin in 2016/17.

Westpac Stadium

We will provide a $5.0m grant to the Wellington Regional Stadium Trust in 2016/17. This funding will be used to support the concourse upgrade to deliver a warmer, more welcoming environment for fans. The upgrade will deliver a consistent look and feel for the concourse that better reflects Wellington, the local community and sporting achievements. This will include more natural lighting, upgraded flooring and improved facilities to deliver an improved fan experience.

Economic development – group of activitiesTop

GROUP OF ACTIVITIES RATIONALE SERVICE OFFERING NEGATIVE EFFECTS
3.1 City promotions and business support

3.1.1 WREDA

3.1.2 Wellington Convention Centre

3.1.3 Retail support

3.1.4 City Growth Fund/Economic grants

3.1.5 Major projects – economy

3.1.6 International relations

3.1.7 Business Improvement Districts
Talent attraction and retention

Grow tourism spend and economic returns from events

Grow inward investment and exports

Sustain city vibrancy
  • Promoting Wellington to visitors
  • Attracting and supporting major events
  • Offering convention and concert venues
  • Building regional and international relations
  • Attracting and supporting business activity
  • Exploring major economic development initiatives such as the:
  • runway extension and airline attraction
  • Convention Centre
  • indoor arena
  • War and Peace museum
We do not anticipate any significant negative effects associated with our role in these services.

Economic development – performance measuresTop

ECONOMIC DEVELOPMENT
Objectives Tourism spend

Investment attraction/digital exports

City vibrancy
Outcome indicators Number of domestic and international visitors (guest nights)

Average length of stay – international and domestic

Number of major conferences

Number of A-level events held in Wellington and their economic contribution

New Zealand's top 200 companies based in Wellington

Business enterprises – births and growths (net growth in business)

Domestic and international airline passengers entering Wellington airport

Free Wi-Fi usage (logons/day) – waterfront and central city

Pedestrian counts – average of various Lambton Quay sites

Businesses and employees in research and development sector

Secondary (international) and tertiary (international and domestic) students enrolled per 1,000 residents

Events/activities held with international cities (in Wellington and overseas)
3.1 City promotions and business support

3.1.1 WREDA

3.1.2 Wellington Convention Centre

3.1.3 Retail support

3.1.4 City Growth Fund/Economic Grants

3.1.5 Major projects – economy

3.1.6 International relations

3.1.7 Business Improvement Districts
PURPOSE OF MEASURE PERFORMANCE MEASURE 2016/17 2017/18 2018–25
To measure the quality of our investments in promoting the city WREDA – Positively Wellington Tourism partnership funding Maintain the Council's funding at less than 50% of total income Maintain the Council's funding at less than 50% of total income Maintain the Council's funding at less than 50% of total income
To measure the usage of Council-supported events Estimated attendance at Council-supported events 500,000 600,000 700,000
To measure the quality of our investments in economic development Events Development Fund – ratio of direct spend to economic impact 20:1 20:1 20:1
The proportion of grant funds successfully allocated (through milestones being met) 95% 95% 95%

Economic development – activity budgetTop

3.1 CITY PROMOTIONS AND BUSINESS SUPPORT 2015/16
LTP
GROSS EXPENDITURE
2016/17
ANNUAL PLAN
GROSS EXPENDITURE
Operating expenditure ($000) ($000)
3.1.1 - WREDA 31,560 30,822
3.1.2 - Wellington Convention Centre - 1,051
3.1.3 - Retail support (free weekend parking) 1,356 1,357
3.1.4 - City Growth Fund, economic growth and economic grants 3,599 3,001
3.1.5 - Major projects – economy - 5,000
3.1.6 - Regional and external relations 572 661
3.1.7 - Business Improvement Districts 114 194
Total operating expenditure 37,201 42,086
Capital expenditure ($000) ($000)
3.1.1 - WREDA - -
3.1.2 - Wellington Convention Centre 2,215 7,011
3.1.3 - Retail support (free weekend parking) - -
3.1.4 - City Growth Fund, economic growth and economic grants - -
3.1.5 - Major projects – economy - -
3.1.6 - Regional and external relations - -
3.1.7 - Business Improvement Districts - -
Total capital expenditure 2,215 7,011