The Whangarei District Council has announced that it has bought the Whangarei RSA site at 9 Rust Ave for $3.4m. Better Whangarei understands the property has an independent market valuation of $3.175m.

The property adjoins the Library and may be used for car parking, a new theatre, or as a site for new council offices.

 Better Whangarei understands the favoured option for the site is for use as new council offices, leaving Forum North available for development as a theatre and cultural centre. The Council has budgeted spending of up to $10m in its long-term plan for the new offices.

Better Whangarei understands the council's own estimates put the cost of the cost of the building alone to be $20 million.

Somewhat surprisingly, the purchase is to be funded from the Councils property reserve. That reserve has been built up from the sale of council's investment properties and is held for reinvestment into new investment property for the purposes of deriving an income to subsidise rate increases. This purchases of the RSA property, however, appears to be of a strategic nature and will not derive a rental income.