Wellington’s Golden Mile Project Blows Budget as Council Prepares for Major Review

Wellington City Council designs for the Golden Mile on Courtenay Place. Image / WCC

Wellington’s flagship Golden Mile redevelopment has run over budget, forcing the city council to halt contract negotiations and consider a full project review next week.

Documents for the new council’s first formal meeting reveal the cost of transforming Courtenay Place could rise by an extra $15–$25 million on top of the already approved budget. Some early works have begun, but the main construction phase is still in limbo, with councillors openly debating whether the project should be paused, scaled back or abandoned altogether.

Council officials say the financial risk is too significant to proceed with negotiations until elected members give clear direction. They have also warned that unexpected underground challenges could push the council’s exposure even higher if the project continued unchanged.

Wellington City Council has released its new design for the Golden Mile on Courtenay Place. Image / WCC

Officers are now urging councillors to approve an independent review examining the project’s strategic value, cost-effectiveness and long-term funding implications. This review is expected to cost between $200,000 and $400,000 and take up to six months. Other options include a smaller in-house review for about $70,000, or a full business-case reset that could cost as much as $3 million.

The Golden Mile upgrade was last estimated at $116 million in August, increasing to $139 million once contingency was included. A previous $20 million escalation was partially reduced only after the project was scaled back.

While NZ Transport Agency Waka Kotahi is committed to covering 51% of the cost, its funding is fixed at the dollar value agreed four years ago. Any design changes — including reinstating bus stops requested by the regional council — could trigger a withdrawal of that support.

Officials now say the scope, cost and intended benefits can no longer be delivered within the existing budget.

Mayor Andrew Little, who campaigned on tightening council spending, says he sought cost assurances throughout the election period and remains concerned about escalating risks. He is meeting Transport Minister Chris Bishop next week, where the Government’s contribution to the project is expected to be discussed.

Little says he supports the concept of the Golden Mile but believes the review is essential to understand the true financial impact on ratepayers.

Flyover footage released earlier this year showed a future Courtenay Place with widened footpaths, a dedicated cycleway, expanded outdoor dining areas, new public seating and additional trees and rain gardens designed to naturally filter stormwater. Private vehicles would be excluded during daytime hours.

The project was originally part of the now-scrapped Let’s Get Wellington Moving programme, before being handed to the council along with the pre-agreed NZTA funding.

Despite a decade of repeated consultation, detailed plans for the Golden Mile beyond Courtenay Place are still yet to be released.