Central Otago District Council has entered negotiations with potential buyers for a large council-owned industrial block in Cromwell, after testing the market in August. 

The 52-hectare site on the south side of the town - largely covered in pine trees and used as an off-leash dog-exercise area and by a paintball business - was rezoned from rural to industrial several years ago. 

The land is an endowment property, meaning it was transferred to the council by the Crown, and has long been earmarked for development and to bring in revenue for other council projects. 

Council senior manager David Scones said a registrations-of-interest (ROI) process, run by Colliers Otago in August, was designed to gauge demand and help shape the subdivision. 

The campaign targeted businesses looking for blocks of at least two hectares. 

“At its meeting on 24 September, council resolved to proceed with negotiations with selected parties who responded to the ROI,” he said. 

Fifty-two hectares of council-owned land along Bannockburn Road rezoned for industrial development is on the market. Image: Facebook/Colliers New Zealand

The block is bordered by the Department of Conservation-managed Cromwell chafer beetle reserve, the town’s transfer station and the expanding commercial and industrial area. 

Approximately 19 hectares of pines will have to be harvested to allow for development, and council staff are working with the two existing lessees to manage the transition. 

Council is also liaising with the Department of Conservation to protect the ecological integrity of the adjoining reserve. 

Cromwell Community Board chair Anna Harrison, reporting to the final council meeting of the current triennium, was pleased to see progress. 

“This brings exciting possibilities for Cromwell, not only with the expansion of the industrial area, but with the proceeds of this endowment land much anticipated to align with the endowment land investment strategy,” she said. 

“How this is managed into the future has the potential to be a major boon.” 

Approximately 19 hectares of trees will be felled to make way for business growth. Image: The Central App 

The development is another step in implementing the Cromwell ‘Eye to the Future’ Masterplan, which includes a spatial plan to guide the town’s rapid growth. 

Colliers marketed the land as being ideally located to support businesses serving both Central Otago and the neighbouring Queenstown-Lakes district. 

It described the site as suited for light and heavy industrial uses including storage, manufacturing, fabrication, processing and distribution, with future lots to be delivered as freehold titles with service connections in place. 

Read more: Cromwell’s value still unclear as councillors back land strategy 

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