'Incompatible': Massive Cromwell development rejected

An 840-section Cromwell housing village has been rejected by independent commissioners, but the company behind it is planning to appeal.

The Central Otago District Council released the decision today on Plan Change 13, a private plan change for rezoning requested by River Terrace Developments Ltd to build a large-scale development on the outskirts of the town.

The company behind the village this afternoon said it plans to appeal the decision.

In a statement today Winton chief executive Chris Meehan said it was disappointed with the outcome, and people seeking to live in the Cromwell community who needed housing would be too.

River Terrace Developments Ltd is fully owned by Winton.

The town needed more quality and affordable housing, which was a view shared by the Southern District Health Board and Central Otago Mayor Tim Cadogan, he said.

"The thoughtfully designed masterplan for River Terrace, along with the high-quality homes that Winton delivers and the speed at which it operates, would quickly start to address what has been called a 'housing crisis' in Central Otago.

"Without an increase in supply from a development like River Terrace, the shortage and pressure on house prices will only get worse."

In their decision commissioners Gary Rae, Gavin Lister and David McMahon said the most compelling evidence they found was the site was not suitable for the ‘‘proposed purpose given the existing environmental conditions’’.

This was due to the location next to Highlands Motorsport Park, the Central Motor Speedway and horticultural activity.

‘‘In particular, the proposal will be subject to significant levels of noise from lawfully established horticultural and motorsport activities which constitutes a significant adverse effect in terms of nuisance and amenity.’’

The site was ‘‘poorly integrated’’ with the urban form of Cromwell, they said.

‘‘We have acknowledged above that the proposal has the ability to deliver demonstrable positive effects; however, these are not a panacea for the significant adverse effects arising.’’

In the decision commissioners considered the reverse scenario, posed by a submitter, in which the River Terrace development was established and proposals were made to authorise Highlands, the speedway and surrounding horticultural activities.

‘‘We struggle to imagine how those activities, in the scale and extent they currently operate, would be able to be introduced next to 900 homes because of the adverse effects that would arise.

‘‘It confirms our view that the proposal is incompatible in this context.’’

The decision was made in early November, but the council had withheld the outcome from being released until applicant River Terrace Developments Ltd paid $260,000 in unpaid processing fees.

These extra fees had been challenged by the company, which said it had put aside the money in a trust and would pay them when they were explained by the council.

The parties had not resolved the dispute.

However the council has recently been put under pressure to release the decision by opponents of the plan.

Today the council said it would make ‘‘every effort’’ to ensure the fees were recovered, but considered further action was not in the interest of the community, and so decided to release the decision.

The decision matches the view of council planning consultant David Whitney, who recommended the application be declined.

It is subject to an appeal period, ending February 24, 2020.