The Gair Ave subdivision in Cromwell was ''all but complete'', and only ''final touches'' needed to be done to the three new greenways around the development, Central Otago District Council property and facilities manager Mike Kerr said.
The joint venture, between council and development company AC/JV Holdings Ltd, has formed a 78-lot subdivision of sections ranging from 336sq m to 864sq m. Thirty-seven lots have sold and 41 are still available, ranging in price from $265,000 to $340,000.
Mr Kerr said from the 37 sections already sold, the council had already received the ''contracted minimum'' from the agreement, being $5,421,500.
The remaining proceeds from sales will be shared between council and AC/JV Holdings Ltd.
Mr Kerr said that could be another $3.5million, making a total profit for ratepayers of $9million.
He said the aim had been to create a ''high-quality residential area'' that included greenways on the south, north and east boundaries; tree plantings; asphalted rather than chip-sealed roads; full curbs to prevent vehicles parking on footpaths; and parking bays on side roads.
''AC/JV Holdings Ltd funds the cost of development and is reimbursed for the cost of development as each section sells. With the developer carrying the developing costs, there is very little risk to the council, but it receives considerably more than the $4.1million it would have received from just selling the block as a single unit.''
Cromwell Community Board chairman Neil Gillespie said the development was a ''win-win'' and the continuation of a long-term board project to provide sections to cater for Cromwell's growth.
He said income from the development would help fund future council projects in the Cromwell ward.
''With the Cromwell master plan spatial plan now adopted and staff working on the financial analysis for the town centre and heritage precinct stages, income from the venture means more funding could be available to help make the master plan projects happen.''
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While it is nice council will have a bucket of money to spend, I have to serious question councils attitude to making housing even remotely affordable.
Council has or will profit to the tune of $109,000 per section. I suppose the developer will pocket the same or more because they did all the work. So together they will rake at least $218,000 per section.
Nice cream, but this level of greed firmly makes land and houses unaffordable to most people. What is central becoming? Towns only for millionaires and hour long commutes for the workers, be they teachers, policemen or shop staff?