The polytechnic announced yesterday the purchase of the ‘‘Bannockburn Block'' on Bannockburn Rd, which it previously leased from Contact Energy, for the site of its campus merger.
Its central campus is located at three sites: Molyneux Ave, Bannockburn Rd and the Otago Secondary Tertiary College in the industrial area.
Central Otago Mayor Tony Lepper said the development showed a long-term commitment by the polytechnic to stay in the area, which was ‘‘extremely exciting''.
‘‘Central Otago needs an education provider. It's extremely important to the district.''
The polytechnic not only brought student money into Cromwell, but hooked educated people into staying in the district, he said.
The development was another job creator, along with many other Cromwell building projects, he said.
Cromwell Business Network ‘‘musterer'' Greg Wilkinson said the development was ‘‘another sign of the burgeoning Central Otago economy''.
‘‘What's not to like, with the number of staff they employ, and students they bring in from around New Zealand and internationally?''
The polytechnic helped keep local high-school graduates in the area by bridging them into trades, he said.
Polytechnic chief executive Phil Ker said the development would ‘‘rationalise and modernise'' the central campus.
‘‘Having different sites doesn't make sense.''
The site of the tertiary college is leased, but the Molyneux St site will be sold, and the money will go towards new facilities.
‘‘Without modern facilities, we won't attract the interest of national and international students.''
He was in discussions with developers about student accommodation, one option being to provide accommodation on the site.
‘‘We suffer from what the rest of Central Otago is suffering, which is a lack of accommodation.''
The central campus has 250 full-time students this year, similar to last year, he said.
He would not comment on the cost of the land purchase or new development.
He hoped plans would be ready in May, and the development completed in time for the 2018 academic year.