A request by the developers of Cromwell’s Wooing Tree subdivision for the Central Otago District Council(CODC) to help fund a new roundabout and underpass was strongly rejected yesterday.

The majority of councillors voted against council staff recommendations that ‘developers contributions’ – fees paid to help council provide services and infrastructure for increased population associated with new subdivisions – be waived to the tune of $630,000.

Speaking for the developers, Veros Property Ltd director, Duarne Lankshear, told council at a livestreamed meeting yesterday it was a condition of their consent that a roundabout and underpass be provided. 

Waka Kotahi(NZTA) had, however, designed a 40m diameter roundabout in order to provide for growth. The developers considered this to be “oversized” in relation to what was required to serve the subdivision. They were now facing a $4.4M cost for this and the underpass.

“We have had to spend more than we thought. We have a funding issue and need to bridge the gap.”

Wooing Tree subdivision spokesperson Duarne Lankshear speaks to Central Otago District Councillors via livestream from Tauranga yesterday.

He said cycle and walkways would be provided to a high standard within the now-360 lot subdivision so people could traverse through to trails and this had added to costs.

The original subdivision contained 210 sections, consented through the council’s publicly-notified process but the developer had then reapplied to extend this under a government Fast Track scheme aimed at addressing a nationwide housing shortage.

The process overrode previous agreements between the developer and council, neighbours, other submitters, allowing section numbers to increase to 360, the meeting heard.

Cr Neil Gillespie rejected the developer’s request, stating they had accepted that providing the facilities were part of their consent conditions and now had 360 sections to sell to help fund this. 

Council had to provide infrastructure and the purpose of developer’s contributions was to help fund these.

“I don’t see any reason or scope why we would forgo developers contributions. They are going to cause growth to the roading network outside of Wooing Tree that this council and ratepayers have to fund. There is no sound reason why we should offset a developer’s cost. If their budgets don’t line up that’s an issue they have to face, it is not a problem for this council.”

Cr Nigel McKinlay said the increased number of sections would provide more income for the developers.

“They have vastly increased revenue and profit and they are legally obliged to meet their obligations of an underpass and a roundabout. It just defies belief that their budgets don’t accommodate it. I can see no reason whatsoever why this council should support this recommendation.”

In support of the recommendation to assist the developer, Cr Tamah Alley said such projects bought in new residents who gave substantial financial benefit to the community and work was provided for many in creating the subdivisions.

Underpass Location Questioned

There had historically been discussion at council about providing an underpass for cyclists prior to the Wooing Tree subdivision being proposed and this had initially been considered for inclusion in council’s Long Term Plan. 

This had not, however, proceeded to a stage where funds had become available to be allocated and no potential sites were identified.

Some councillors felt if an underpass were to be built, a site closer to Shortcut Road and the existing trail could be more suitable than into the Big Fruit area, as is planned. 

Cr Shirley Calvert felt an underpass to the Big Fruit area would create a “hole” in the grassed area where events were held and council would have to fund new landscaping around it. She believed cyclists using the proposed underpass would have to move through built up and residential areas to reconnect with the trails which was not ideal.

“In terms of connectivity it makes absolutely no sense at all and are we just going to have a great big hole in the middle of a reserve where there are festivals and people have stalls. How much of the reserve is going to be a big hole and an entrance to a tunnel.”

Cyclists were currently able to pass under the highway where an existing trail ran below the Cromwell Bridge, the meeting heard.