Rotorua property owners to save millions as earthquake risk status changes

Rotorua property owners are expected to save approximately $107 million as more than two dozen buildings are no longer classified as earthquake-prone. A new law passed by Parliament will reduce the number of buildings deemed a risk in the city from 66 to 40, representing a decrease of nearly 40%. The estimated cost for complying with earthquake-prone building requirements in Rotorua is projected to fall from $160 million to $53 million.

Under the reforms, only certain multi-storey concrete buildings and unreinforced masonry buildings in high and medium seismic zones are eligible for earthquake-prone classification. Rotorua continues to be classified as a medium seismic zone. The savings in Rotorua are larger than those forecast for Tauranga, Taupō, and Whanganui, but smaller than expected savings in Hamilton, Christchurch, and Wellington.

Eight priority buildings in Rotorua face shorter upgrade timeframes due to their location or use. These include a holiday park building in Ngongotahā, Amazing Place Preschool in Mangakakahi, a building associated with the Prince’s Gate Hotel complex, and a Pukuatua St commercial property. Three Fenton St locations are also listed, consisting of a private residence, the Seventh-Day Adventist Church, and a structure at the Rotorua Racing Club.

Rex Merrick, owner of the former Advocate Print building on Fenton St, said removing the earthquake-prone classification would make selling the property "much easier". Rotorua Racing chief executive Damien Radesic said the organisation had received no communication regarding how the changes might affect a racecourse building. Radesic stated, "All it did was add cost to people's business because we all panicked about having to get things up to a certain standard".

Compiled from reports by NZ Herald and RNZ.