Supermarket in doubt

A new $8 million Countdown supermarket approved for Kerikeri is in jeopardy because of development contributions amounting to $800,000.

Property general manager for Progressive Enterprises Adrian Walker says the contribution is a significant portion of the cost of the development and impacts on the viability of the whole project.

Resource consent has been granted for the 4200 square metre supermarket, to be built on the corner of Kerikeri Rd and Butler Rd, replacing the existing Woolworths supermarket on the other side of town.

The store will mean about 150 jobs for Kerikeri.

The new complex is designed for the rear of the site, with entry and exit from both roads, with parking for 165 cars.

Development contributions were to be used towards an improved roading pattern to mitigate the effects of the supermarket, but Mr Walker says they are well out of line with development contributions paid for similar developments elsewhere in the country.

"The majority of councils would charge less than $100,000," Mr Walker says.

Progressive Enterprises hopes to meet council representatives this week to discuss the matter.

Councillor Steve McNally has raised the topic of development contributions several times.

He says he has received several complaints about the policy from people wanting to invest.

"The ongoing economic benefits of these types of projects and the new rate income stream in perpetuity are not factored into this council's thinking when considering development contributions, and I believe this to be part of the problem that needs addressing if we want to encourage new investment and expand the ratepayer base," he says.

In his February report to the council, Mr McNally says a reduction in government funding and reduced activity in the property sector has seen building and resource-consent work decline, with a subsequent reduction in contribution income.

With the development contribution account now about $17 million overdrawn, he has urged the council not to spend the money on growth-related infrastructure until funds are in hand.

- © Fairfax NZ News