12 October 2017
The Cromwell Community Board has recently entered into a joint venture with a property developer seeing the potential for further benefit to the community from the partnership.
The joint venture for development of 3.5 hectares of Council-owned residential land at Gair Avenue in Cromwell is the result of a tender process by the Board.
"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," Cromwell Community Board Chair Neil Gillespie said.
There are 78 lots in the proposed development and Mr Gillespie said the Board had worked with the developer to provide a number of options in section size.
Under the joint venture contract Council is to be paid for the land and receive 50% of the profit from the development. The developer partner is developing the subdivision and selling all sections. There are minimums price levels the developer is required to meet to maximise return to the joint venture partners.
"In simple terms we think we 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 are expected to be actively marketed by later this month. Pre-sale discussions have been held with a group home company and sale contracts soon to be signed for 10 sections. These pre-sales assist in covering development costs. Other group home companies have expressed an interest but at this time no other sales commitments to group home companies have been made.