Two longstanding Cromwell businesses are likely to be forced to move to make way for as-yet undecided Masterplan developments.

Central Wormworx and Otago Metals Central neighbour each other on a 52ha block off Cemetery Road. Both had held long term leases in the past but had been told they may not be renewed when they expire in 2023 and 2024 respectively.

CODC executive manager planning and environment, Louise van der Voort, confirmed yesterday that the block was being rezoned from a Rural Resource Area into Industrial area as outlined in the Cromwell ‘Eye to the Future” Masterplan Spatial Framework.

“The Cromwell Community Board has not made any decisions on the development of the land. Decisions around leases are made to enable the Board to optimise subdivision layout when considering development of the land in the future. If the land is occupied at the time of development that is likely to impede physical works such as installation of infrastructure and internal roads.”

Both businesses could operate under the new zoning but because it had not been decided what would happen next, there was “no provision” for the leases to continue, she said.

“It does not provide a right for the leases but it also does not prevent the lease being renewed if that meets the Board’s objectives for the land.”  

No specific timeline had been set for the industrial development with a report likely to be referred to the Board some time in 2022.

Asked if CODC were comfortable with the level of uncertainty the effected businesses were dealing with, Louise said the lease terms were there to provide certainty as they effectively were flagging the long-term use of the land as set out in the Masterplan.

The block, which has a capital value of $1,510,000, is also occupied by a motorbike club. 

“The motorbike club is in a similar situation and has been granted a short-term lease, which contains cancellation clauses. The purpose of the clause is to enable the existing tenant to remain in place until such time as development of the land commences.”

Business owners Robbie Dick and Graham Rollo both told Central App they had been given no clear answers by the council as to if or why they could not remain.

Wormworx owner Robbie Dick earlier said the non-renewal of the Wormworx lease was unexpected. He said CODC had offered an alternative site off Richards Beach but this was not a practical option due to the cost of setting up again from scratch.

He had been operating on the site since 2004 taking in food waste to produce tiger worms and soil conditioner.

Yesterday he said the news that the lease was not set to be renewed despite the council having no plans for the plot was “a bit annoying” as it would make it nearly impossible to sell the business.

Lousie van der Voort said the Cromwell Community Board recognised that the worm farm aligned with the Council’s waste minimisation objectives.

“Council is supportive and would like to see the operation continue. The issue is that it is in an area identified in the Cromwell Spatial Plan and is subject to a plan change. Until the Board makes a specific decision on the future of the site, it is not appropriate to extend the lease.”

Otago Metals Central part owner Graham Rollo said yesterday the situation made long-term planning difficult and if he had to move he would need to start sourcing new premises next year. The large, centrally- located site at Cromwell allowed space for recycling work with car bodies, whiteware, roofing iron and other large items and a replacement site would not be easy to find. 

“I can only hope they let us stay here.”

The business, based in Dunedin has been recycling metal in Central Otago for 45 years.  

Last month The Central App reported a third business, Cromwell Mini-Golf was facing uncertainty after the term of its lease was shortened considerably to allow for possible but unconfirmed developments associated with the Cromwell Masterplan.