The Cromwell Community Board is considering making a foray into the property market.
It plans to construct a commercial building on land in the town centre to house an expanded Cromwell Medical Centre and is seeking comment on the proposal.
Board chairman Neil Gillespie said the Central Otago District Council owned the medical centre's current premises in the Cromwell Mall, but the centre had outgrown the facility.
The proposed new site, near the mall and existing medical centre, is owned by the council and covered in grass and trees.
It is on the corner of Waenga Dr and an access road into car parks and is bordered on two sides by car parking.
"When we were talking about the town centre redevelopment, this site was identified as a potential location for an expanded medical centre," Mr Gillespie said.
The board proposed constructing a two-storey building on the land, selling the lower level as a replacement for the current medical centre and providing the second level as commercial or office space, for lease or sale.
Funding of up to $2,050,000 million would be provided from the council's reserves account until it received the proceeds from selling the lower level of the building.
The net estimated cost to the council would be $700,000, but that figure would be offset by future returns on the investment from lease or sale.
The aim was to ensure the centre could remain in the town centre, Mr Gillespie said.
"Allowing the medical centre to expand but remain in the town centre and maximising the use of the land to add some extra commercial or office space will help to keep the town centre vibrant."
Submissions on the proposal close on April 21.
Plans have yet to be finalised for the redevelopment of the town centre and Cromwell mall.
A concept plan was prepared last year and public comment was invited in August.
Traffic and town planning reports based on the plan were also prepared.
Mr Gillespie said a more detailed plan was now being prepared, along with estimates of the cost of the project.
No firm commitment had been made at this stage.
In its long-term council community plan, the council has indicated it will spend about $5 million on the project, spread over five years.
