A large-scale commercial visitor accommodation development in the Wooing Tree estate is being planned by Auckland company Redwood Group Ltd.

The development company was also recently involved with Greenmeadows Terrace, Kawarau Villas and Coronet Peak Alpine Villas.

The Central Otago District Council granted consent for Redwood to build 46 residential units in October, but the company has come back asking to change its proposal to also include visitor accommodation.

The application seeks to add an alternative land-use option so individual owners may make their units available for short-stay rentals.

Although visitor accommodation was initially included as an optional activity in the original application, it was removed at council’s request due to concerns relating to notification and potential transport effects.

The site formed part of the wider Wooing Tree development approved under the COVID-19 Recovery (Fast-track Consenting) Act 2020, which included reference to visitor accommodation as a potential use for the lot. 

However, planning consultant Oli Monthule-McIntosh said in his report, that Redwood’s consent did not authorise visitor accommodation on the subject site and, in any event, was a separate and now superseded authorisation.

Oli said that the conversion of an entire medium-density residential development to short-stay accommodation would represent a material change in how this site contributes to local housing outcomes.

…”this proposal introduces a large-scale, commercial visitor accommodation use into an area still establishing its residential identity. 

“In the absence of a detailed and enforceable management plan, or a single accountable operator, the proposal does not provide sufficient certainty that adverse effects on neighbourhood character, amenity, and social cohesion can be effectively mitigated.”

The Grove visitor accommodation proposed for the Wooing Tree Estate in Cromwell. Image: supplied.

Since 2019, there has been 310 houses built in the Wooing Tree Estate, and a total of 370 will be fully consented by the end of the year.

Of those 299 are Low Density residential lots, 91 Medium Density residential lots, and Lot 604 was purchased by Redwood for the final stage of the subdivision.

The development is called The Grove, and will be situated adjacent to the Vineyard Cellar Door and underpass, and alongside State Highway 8b that runs through the town.

Visitor accommodation is permitted in the subdivision, where certain conditions are met, including that at least one person resides permanently on the site and the maximum occupancy is six guests per night. 

In this instance the application proposes to authorise the exclusive use of the units for visitors accommodation (i.e. no permanent resident). As such the proposal is a discretionary activity.

There will also be a shortfall in parking onsite if the units are used for visitors accommodation.

Oli said in his report the absence of permanent residents diminishes opportunities for casual social interaction, passive surveillance, and a sense of shared responsibility within the community. 

“In aggregate, these factors are likely to undermine the residential character and social cohesion anticipated under the Medium Density Residential (MDR) zone framework.”

He said the MDR zone is intended to provide for compact residential living and to contribute to the district’s overall housing capacity. 

“The conversion of an entire medium-density residential development to visitor accommodation has clear implications for the supply and availability of long-term housing stock.”

But in its housing and economic report, submitted with its application, Redwood Group said the proposal does not remove dwellings or change the underlying residential zoning of the land. 

“As a permitted activity under the operative plan, the owners of these units retain the ability to use them for permanent residential occupation at any time. 

“This inherent flexibility ensures the units can readily contribute to Cromwell’s long-term housing resource, while also enabling a response to market demand for visitor accommodation, all without compromising the district’s supply pipeline."

Submissions Close at 4:00pm on 20 February 2026,