Retirement home plan changing

Major changes are proposed on ownership of a community-built $21 million retirement complex on Hospital Hill in Oamaru and how it will be run.

The development, on 7.9ha, was announced a year ago by Waitaki District Health Services, a Waitaki District Council company formed to run Oamaru Hospital and provide the district's health services.

Now the company is considering spending $400,000 on design and documentation for building consents before calling tenders, which would give an accurate cost and certainty to financial projections.

So far, the council has been closely involved in decisions and has held two public consultations, in which 90% of 80 submissions supported the project.

On Wednesday, the council would be asked to confirm the next steps in the process, including changes to the way the complex was owned and operated.

The first involves revoking a decision to set up two council-controlled organisations (council-owned companies) to own and operate the retirement village.

That means the health company would decide whether the village would go ahead and how it would operate, without needing council approval.

However, the council would still decide on providing a $5 million loan and would have input on infrastructure such as roads and services.

Instead of the two council companies for the village, the health company would set up three charitable entities, one to own it and two to operate facilities.

Council chief executive Michael Ross said the proposal had gone through a rigorous process, including two consultation exercises with the community.

While it was good to see strong support for the retirement village, more work was needed before the next decisions could be made, he said.

Following independent advice, it became evident establishing two new council-controlled organisations would not be required and the final decision as to whether the retirement village was built would remain with the health company's board.

As a result, it was recommended the council revoke two related resolutions made late last year.

''This will provide greater clarity and certainty for both the community and the company, who is now able to proceed with the proposal without council approval,'' Mr Ross said.

Waitaki Mayor Gary Kircher said Wednesday's council meeting would provide an opportunity for councillors to confirm they were comfortable with the company making the final decision.

''I envisage that council's role will be confined to a future decision on a potential $5 million loan to the project. That decision will hinge on us being satisfied with the detailed business case,'' he said.


The plan
 •A range of services for the independent elderly through to those requiring rest-home or hospital-level care.40 care beds.

 •Up to 12 apartmentsUp to 21 villas.

 •Core services cost $5 million to $8 million.

 •About two years to complete.

Stage 1: Fully-dependent care facility and hospital.

Stage 2: Semi-dependent, serviced studios or apartments.

Stage 3: Independent residential 1, 2 and 3 bedroom villas.


david.bruce@odt.co.nz

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