10 July 2019
The 78-lot residential subdivision owned by Central Otago District Council at Gair Avenue, Cromwell, is all but complete with only final touches remaining to the three new greenways around the development. Thirty-seven lots have been sold to date, of which 10 were purchased by a group home company, and 41 are still available.
The Cromwell Community Board has worked with development company, AC/JV Holdings Ltd, to create a high quality residential area that includes greenways on the south, north and east boundaries, street trees planted, asphalted rather than chip sealed roads, full curbs to prevent vehicles parking on footpaths, and parking bays on side roads.
CODC Property and Facilities Manager Mike Kerr said the design reflects a continuation and enhancement of the prior Gair Estate stages already completed. Sections in this stage range from 336m² to 864m² to create options for buyers in terms of both size and price, he said.
AC/JV Holdings Ltd was selected from five developers who submitted proposals to Council to carry out the subdivision. AC/JV Holdings Ltd funds the cost of development and is reimbursed for the cost of development as each section sells. With the developer carrying the developing costs, there is very little risk to the Council but it receives considerably more than if the $4.1 million it would have received from just selling the block as a single unit. From the 37 sections already sold, the Council has already received the contracted minimum being $5,421,500. The remaining proceeds from sales are shared between Council and AC/JV Holdings Ltd.
Cromwell Community Board Chair Neil Gillespie said the development was "the continuation of a long term project of the Board to deliver sections to enable Cromwell to address the growth that we are experiencing".
"The guiding premise was that Council would bring the sections to market to ensure the original investment in the land by the community provides an appropriate income. The partnership has been a win-win all round and the development's design reflects what we have been told by the community through the Masterplan process is important to them."
Mr Gillespie said income from the development and sale of Council land in Cromwell was a very important component to help fund Council projects in the Cromwell ward.
With the Cromwell Masterplan Spatial Plan now adopted and staff working on the financial analysis for the town centre and heritage precinct stages currently, income from the venture means "more funding could be available to help make the Masterplan projects happen", Mr Gillespie said.
The Council still owns the northern half of the Gair Avenue block of 4.5 hectares for development in the future. All of the pine trees on that area were cleared at the same time as the current subdivision development, and any excess soil from this development area has been used to enhance the condition of the area for future development.
People interested in one of the remaining 41 lots should contact the AC/JV Holdings Ltd's representative at email@example.com or Edinburgh Realty, Cromwell https://www.edinburghrealty.co.nz
An aerial shot showing the 78-lot subdivision area indciated by the red outline. The balance of land is the 4.5ha undeveloped next stage, which has been put on hold by the Cromwell Community Board to consider other housing options there.