A profit of about $3 million the council expected from the 27-section subdivision on 5.84ha was to go towards the $10.4 million Opera House redevelopment and restoration project, which has now been completed.
But construction of the subdivision and sale of sections, which range in size from 610sq m to 1540sq m, has been delayed because the reserve status of some of the site needs to be clarified by Parliament through the Reserves and Other Lands Disposal Bill.
The council sold 16 sections in the subdivision after it was launched in November, 2007, at prices from $300,000 upwards, making it the most expensive residential sections of their type in Oamaru. The sales were conditional on the reserve status being clarified and the development going ahead.
Further marketing of the sections was delayed until the Bill was passed.
Work started on the Bill about two years ago, and it has now finally reached Parliament.
The Bill was introduced for its first reading in Parliament on Thursday by the Minister of Land Information, Richard Worth.
The first reading was adjourned when Parliament rose on Thursday, with one speech to be completed when it sits again on Tuesday.
Council chief executive Michael Ross said yesterday the introduction of the Bill after so long was "good news" for the council.
Once the Bill was passed, the council could proceed with the subdivision.
Profit for the subdivision would go into the council's property division, which had raised a $3 million loan to meet the pledge to the Opera House project.
The Bill, which deals with 17 pieces of land throughout New Zealand, will go to the primary production select committee for consideration once the first reading is completed. It will be up to the select committee to decide how to handle it, including whether public submissions should be called and heard.
In introducing the Bill, Dr Worth said the sections referring to the Forrester Heights land would confirm the land was endowment property and was vested in the Waitaki District Council for the purpose of aiding council funds.
