Willowridge interested in subdivision

Wanaka developer Allan Dippie could be set to buy another large chunk of Upper Clutha land for residential development, this time in Luggate.

Mr Dippie's company, Willowridge Developments Ltd, has a conditional contract to buy the controversial Luggate Park development on the northern side of State Highway 6.

The sale is partly dependent on whether an application by present owner, Auckland-based development company Dentils Ltd, to extend the lapse period of existing resource consents on the land is approved by the Queenstown Lakes District Council.

The consents are due to expire later in the year.

The first three stages of Luggate Park are already complete, but subdivision of the balance of the land, about 50ha, never proceeded as planned.

In 2006, applications were made to subdivide the remaining land in two stages.

Consent was granted for 138 lots in 2007 and a second stage comprising 22 residential lots with building platforms was approved by Environment Court Consent Order in 2010.

The consents were obtained by the original developer, Luggate Holdings Ltd, associated with Queenstown businessman Jim Boult.

In mid-2008, Dunedin City Council-owned company Delta bought a 50% interest in the development for $5.35 million, before selling it to Dentils in 2013.

Delta lost about $5.9 million before tax on the Luggate investment, which was the subject of an investigation by the Office of the Auditor-general.

Dentils' resource consent extension application says the company was able to sell all the remaining sections in the first three stages of the development.

However, ''the practicalities of an Auckland-based development company progressing ... stages 2A and 2B proved too challenging'', so the land was offered for sale.

Mr Dippie said Willowridge was ''still very much much doing a due diligence'' to see if it was viable to get the development ''back on track'' and no decision has been made to proceed.

Willowridge was an experienced development company which had made a success of previous developments in smaller towns such as Clyde and Cromwell, he said.

''I think Luggate Park has been an initial success but probably suffered from the recession in 2009. A lot of work has been done to supply infrastructure to the development and Luggate is a great little village, very well located, so it appeals to us.

''We have talked to quite a few local people and they are keen for Luggate to grow and [have] more services added to the town.''

If the consent period was successfully extended and Willowridge considered the project viable, it would consult Luggate residents.

Luggate Park also offered an opportunity to provide affordable sections and homes which Willowridge and the council had identified as a future need, Mr Dippie said.

lucy.ibbotson@odt.co.nz

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