Cromwell community board and developer join forces to provide more residential properties
Cromwell's growth is showing no signs of slowing with the community board joining with a developer to provide more homes for the booming Central Otago town.
The Cromwell Community Board has joined with a property developer to use 3.5 hectares of council-owned land for residential properties.
Central Otago deputy major and Cromwell Community Board chair Neil Gillespie said the board had entered into the joint venture seeing the potential for further benefit to the community.
The board had gone through a tender process for the development of 3.5ha of council-owned residential land at Gair Avenue, he said.
“The board decided it was an opportunity to partner with a developer so the community that owned the land would benefit more from the development and sale of the stage."
There were 78 lots in the proposed development and the board had worked with the developer to provide a number of options in section size, Gillespie said.
Under the joint venture contract, council would be paid for the land and receive 50 per cent of the profit from the development. The developer partner was developing the subdivision and selling all sections. There were minimum price levels the developer was required to meet to maximise return to the joint venture partners.
“In simple terms, we think that this subdivision will provide options that the market is reportedly seeking. Our ratepayers benefit by the board sharing the profit with the developer.”
Sections were expected to be actively marketed by later this month. Pre-sale discussions had been held with a group home company and sale contracts soon to be signed for 10 sections. The pre-sales assisted in covering development costs. Other group home companies had expressed an interest but at this time no other sales commitments to group home companies had been made, he said.
Central Otago has experienced a decade of exceptional population growth. Between the 2001 and 2013 censuses the resident population grew by 25.4 per cent from 14,750 to 18,500.
The fastest rate of growth has been experienced in the Cromwell, where the population has increased between the two censuses by over 68 per cent to 6018. Alexandra ward grew a still impressive 11 per cent to 5364 and the population of the Earnscleugh/Maunherikia ward which includes Clyde increased over 18 per cent to 3261.