In a joint announcement yesterday with Waitaki District Mayor Gary Kircher, Te Pari Products Ltd director Jeremy Blampied said the company intended to relocate its
Humber St manufacturing operation to the North End Business Park.
In 2012, following extensive negotiations with the developer of the business park, TR Group, the Waitaki District Council agreed to underwrite the development of the park in order for it to go ahead.
''To get the project under way, council agreed to underwrite the development to the value of $1.5 million in the new subdivision, less any sales beforehand,'' Mr Kircher said.
''While there was some risk involved, it was expected buyers would sign up and council's underwrite would not be required.
''It benefited Whitestone Contracting Ltd, which could then proceed with the $2.5 million works contract, and thus kept them going at the very time when they had just lost the council's roading maintenance contract.''
The project was at a crucial stage, he said, and the effects of the global financial crisis were still being felt.
''The council did not enter into this agreement lightly and those involved were very conscious of putting ratepayer money at risk.''
Titles went through about a month ago, less sales of about $350,000. The Waitaki District Council was obliged to buy $1.15 million worth of sites.
At the same time, Waitaki District Council chief executive officer Michael Ross had been in discussions with Te Pari, which resulted in the Oamaru-based manufacturer of livestock handling equipment and animal husbandry products agreeing to purchase the land.
Mr Ross declined to reveal the value of the deal with Te Pari, citing continuing commercial sensitivity.
He said the Waitaki District Council was aware of other businesses expressing interest in the business park, and he hoped the agreement with Te Pari would boost its appeal.
Te Pari hopes to lodge a building consent for the development soon.
The final building, of offices, warehouse and a factory, would cover more than 4000sq m and the project was likely to be completed in two stages.
''The company is experiencing rapid growth in New Zealand and Australia and this move is an important stage of our growth here in Oamaru,'' Mr Blampied said.
AC Spivey Real Estate, Oamaru, marketing the sites on for the Auckland-based TR Group, has confirmed the sale of four sites.
Agent Tony Spivey said he expected to see a ''tremendous boost'' of interest once construction began on site.
Other offers on sites were ''in the wind'', he said.
