CBD in decline

Published HBT 31/08/15

The Hastings CBD has all the hallmarks of serious decline and a Mayoral symposium has been organised to explore future options.  However history suggests various Hastings Councils have in fact been major contributors to the CBD’s decline. One wonders if things will be any different this time. Recently the 300 Heretaunga West block has had up to 14 empty shops, and whilst there as been some recovery this improvement may not be permanent. Of course city centres elsewhere are facing similar difficulties. 

Almost 40 years ago, in 1976, the old Hastings City Council implemented the infamous CBD ring road traffic system which was supposed to solve both congestion and parking problems, but Instead proved highly confusing, especially for visitors. Gary McCormack once joked on TV that food parcels were being sent in to sustain motorists who were unable to escape the system. A decade and a half later, council wisely abandoned the ring road and replaced it with one way streets plus a pedestrian mall in the 100 East block. This simply replaced one unsatisfactory system with another, so finally in 1999 Council was forced to reinstate the two way streets, and open up the East Mall to traffic. 

In recent times there have been other proposals for reinvigorating the CBD such as shifting the railway station into the centre of town, though this was abandoned when an astute local pointed out the intended passenger train was significantly longer than the space available, meaning passengers would be alighting straight into the water feature. Another idea was to remove the water feature and replace it with a through road to connect the East and West sides of Heretaunga Street, effectively returning to the same layout as had existed 40 years earlier. Council street upgrades, whilst generally supported by retailers, have undoubtably been very damaging to their businesses. Its doubtful any extra shoppers have been attracted to the CBD  as a result of the approximately two million dollars spent. 

Without doubt the most significant council inspired changes have been the development of two new large retail zones, the K-Mart Plaza, and Nelson Park. There is nothing intrinsically wrong with providing for big box retailing because it is clear that is what many shoppers want. Actually, Hastings has been successful in attracting big names including K-Mart, Harvey Norman and Spotlight, but such a significant expansion of retailing was clearly going to impact on the fortunes of the original CBD shopping zone. Population growth in Hawke’s Bay is not great, and incomes are increasing quite slowly, so there is no obvious source of new money to replace that being syphoned off by the new bulk retailers. 

Obviously, online shopping is also putting pressures on traditional CBD retailing but again this should have been anticipated because Amazon and eBay have been around since 1995, and even Trademe started business in 1999. The new 5 star Havelock North Hotel will also incorporate more retail space.

A near complete collapse of the CBD may have been prevented only by Farmers relocating to Heretaunga St and the Wallace Development Company upgrades of the former Power Board building and Woolworth’s site. The new Civic Assist staff have also helped re-establish a more congenial environment  for shoppers after behavioural issues drove many elsewhere. . 

As most large retailers offer free parking, the CBD is disadvantaged by parking fees and fines. The 60 minute limit on meters is simply not enough for many shoppers. Of course messing up parking is a Hastings Council speciality. Many people will remember that the present Mayor and Deputy acting on the advice of external experts, supported selling  off council parking land in Havelock North, then tried to introduce meters because of the resulting shortage of parking.

Of course amalgamation will be an unmitigated disaster for Hastings. If $10 million a year is to be saved, at least 100 and as many as 150 council jobs will have go. With the new super council being based in Napier many jobs may be lost from Hastings. Together with relocations Hastings could lose perhaps 300 jobs, plus tens of millions of dollars in spending. Hasting retailers would be wise to have exit plans for their businesses in the event amalgamation goes ahead. 

Hastings was once the retail capital of Hawke’s Bay and back in the 1960’s trainloads of people would arrive from Napier to do their Christmas shopping. Its unlikely such days will ever return so we need to make absolutely sure shoppers can be enticed back to the CBD before any commitment is made to spend ratepayers money. Advisors are all very well, but they are not accountable and they have not always served council well in the past.