Council to collaborate in support of subdivision development in Ōtorohanga

   Added 3 years ago

PRESS RELEASE

10 May 2022 For immediate release

COUNCIL TO COLLABORATE IN SUPPORT OF SUBDIVISION DEVELOPMENT IN ŌTOROHANGA

Ōtorohanga District Council and Ōtorohanga Timber Company (OTC) have entered a joint funding agreement to support NKC Developments with the completion of a much-needed subdivision in Harpers Ave, Ōtorohanga.

NKC Developments are engaging in a four-stage subdivision in Ōtorohanga township and sought support to complete the development.

In the joint funding agreement Council’s loan contribution of $4,000,000 and Ōtorohanga Timber Company’s contribution of $2,000,000 to NKC Developments over an 18-month term, will enable the subdivision to be completed.

Council identified through public consultation for the 2015-25 and 2018-28 Long Term Plans (LTP’s) the need to create a growth focus for the district and to increase housing capacity to generate that growth. Both the 2015-25 and 2018-28 LTP’s indicated some form of partnership with a private developer to undertake a residential subdivision in Ōtorohanga.

“As Ōtorohanga has a major shortage of residential land, a primary objective of Council has been to assess significant opportunities around the potential to grow our communities, making them more resilient, bring more businesses into town and ultimately increase community wellbeing”, said Ōtorohanga District Council Mayor Max Baxter.

“The provision of the loan will ensure that this major subdivision development occurs, so that we can attract and grow businesses by increasing the amount of housing available for future workers, helping to promote the district as an attractive place to live or visit”, he said.

OTC Timber Managing Director Nigel Wilshier says “OTC's motivation to support NKC is to ensure the development is completed. Ōtorohanga needs new housing to support the town’s progress and provide new housing options for people. An important part of running a business like OTC is having attractive choices for employees on where to live, work and bring up a family. Tom Smit is providing a much-needed development for Ōtorohanga. We support NKC Developments."

Once developed, the subdivision will generate significant rating revenue, therefore reducing Council’s overall rating burden allowing the spread of service costs and enabling higher levels of service.

To approve this loan investment Council needed to ensure that adequate security was provided and undertake its own due diligence satisfying a full risk assessment.

The decision was made by the Ōtorohanga District Council at its Council meeting on 8th April 2022, during which the public was excluded due to commercially sensitive aspects of the discussion.

Contact

Graham Bunn 
Group Manager Business Enablement
Ph: 021-281-9625 
Email: [email protected]