Credit squeeze slows Alexandra development

Peter Dymock.
Peter Dymock.
The credit squeeze is forcing at least one developer to seek a longer term in which to complete its subdivision.

Queensberry Holdings has applied to change its consent for a 38-lot subdivision - granted in mid-2005 - to make better use of the land at its Queensberry subdivision, but it also wants twice the mandatory number of years in which to do that.

The application was heard by the Central Otago District Council hearings panel in Alexandra yesterday.

Council planning consultant David Whitney, from Johnston Whitney, had recommended the subdivision be completed in five years.

But Peter Dymock, from Paterson Pitts and Partners, appearing on behalf of the developers, said the current financial situation might compromise the developer's ability to build a high quality subdivision and 10 years would be fairer.

"In the current conditions, the applicant does not expect to complete all stages of this subdivision until 2015 at the earliest."

Mr Dymock asked that a further condition be set so the duration of the consent was 10 years, rather than the usual five years for all stages.

The size of the subdivision, the likelihood of multistaging and the likely rate of market sales made the request reasonable.

Queensberry director Murray Frost said it could be two or three years until confidence was restored.

"Generally, the standard of subdivisions has improved quite dramatically over the past 10 years and we want to do it properly," Mr Frost said.

When consent for the original subdivision was granted, the minimum lot size was 8ha.

Since then, a plan change was notified which provides for more flexibility for subdivisions, with the minimum lot size reduced to 2ha and an average of 8ha.

Mr Dymock said lot sizes in the new application had been varied to provide a form of clustering more suitable for the site.

Detailed investigation for roading has shown the road alignment was much better than in the original consent and it would require less earthworks.

Mr Dymock said in his opinion the revised proposal would have a lesser adverse environmental impact, particularly the impact of roading earthworks which have been reduced from 15m high batters to a maximum of 7.8m over a very short length, with most batters not exceeding 3m in height.

The new application provides for an additional three lots ranging from 3.7ha to 28.7ha.

Two submissions were received, one in opposition with a submitter concerned that the water supply could be impaired by water from septic tanks.

The submissions by the New Zealand Transport Agency (formerly Transit) about potential effects on State Highway 8 had already been dealt with by the applicant which had accepted the conditions imposed by the agency.

The panel reserved its decision.

 

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