In a statement, Observatory chairman Peter Robinson announced on Wednesday they had reached an alternative funding arrangement as they moved on plans to continue developing the site.
"The board wish to sincerely thank the Waitaki District Council for their vision in supporting Observatory Lifecare from its inception," he said.
Observatory Village Lifecare, a non-profit charitable village, opened in 2017.
"As the village has expanded, we’ve needed capital to fund that," Mr Robinson said.
Until now they had been arranged through a Local Government Funding Agency loan facility via the district council.
Mr Robinson said they have now reached a new arrangement on agreeable terms with a trading bank. It meant they can now "push the button" on the planned $5m apartment block at the village site.
"This has been in the pipeline for about 12 months, in fact the building consent was issued in March last year."
The facility as it stands includes 81 care beds, 32 apartments and 44 villas valued in total at $67.9m.
"There is continued strong demand for more apartments and villas, however the company was constrained with the current funding arrangements and had sought alternative commercial funding," Mr Robinson said
The new 10-apartment complex will get underway in January, along with further stages of the villas.
Another seven villas were completed this year, with four currently under construction.
Mr Robinson said the brand new $3.5m Willowpark Lodge for residents’ use has just been completed.
It will be formally opened next Wednesday.
— APL
