The development will see the Vincent Community Board sell 6.5ha of council-owned land north of the Molyneux netball courts, on the outskirts of Alexandra, alongside the Otago Central Rail Trail, to a developer.
The council will then receive 50% of the net profit of the subdivision, with a guaranteed minimum of $500,000.
The value of the land was estimated at $2.3million, and the estimated minimum total return to the council after development costs was $2.8million, a report by CODC property officer Tara Bates last year said.
But another estimate in the report put 50% of the net profit at $1.2million, meaning the return to council and ratepayers would be greater.
Mr Kerr said this week that registrations of interest for the partner for the project closed on December 22.
"Since council opened for business in the new year it has been finalising the preferred terms of agreement to get the best outcome prior to selecting a party. This has taken longer than hoped, but the result is a decision is likely later in February."
He said if final negotiations with the selected party went well, it was possible subdivision consent could be lodged by the end of March.
Once subdivision consent was obtained, development would proceed over winter, Mr Kerr said.
"Roads could only be sealed in spring. But well before then the subdivision layout will have been determined through the subdivision consent process."
Last year’s report said the reason for the project was to satisfy the demand for residential sections in Alexandra.
"This is based on feedback from developers, real estate agents and builders that there are no other residential developments of any significance planned to come to the market," the report said.
The advantages of the joint venture development included enabling the council to share in the estimated profit on development without providing any capital development funding, the report said.
