More than six years after Queenstown’s council signed a deal to develop the Lakeview site, construction is expected to begin this year.
Some of the key players in the long-awaited Lakeview Te Taumata project took questions from councillors for more than 30 minutes at a full council workshop this week, including the managing director of its Melbourne-based developer, 94 Feet.
Dean Rzechta told councillors it was working through the final conditions for buying the land from the council for the first stage, but expected its builder to be on site before the end of the year.
Cr Lisa Guy told Mr Rzechta there had been "a lot of angst" in the community about the project, and suggested 94 Feet set up an info booth on the site so residents could have their questions answered.
That was echoed by Cr Esther Whitehead, who said although there was "nothing untoward" about the project, it was complex and the community had been struggling to understand it.
Mr Rzechta said there had been a lot of speculation in the media, "but not a lot of it’s been fact-based or verified".
"Just because there’s nothing happening on site, doesn’t mean nothing’s happening."
His company’s commitment to the project was "unwavering", he said.
"A project of this scale is a 15-year job — it takes time to set everything up appropriately."
94 Feet’s Australian financier, Merricks Capital, was happy with the $150million-plus pre-sales so far, it had signed a build contract last year with Auckland-based builder CMP Construction, and had approved building consents in hand for the first stage’s earthworks and foundations.
"We’d like to start next month, we’re ready to go.
"It’s just a question of how long it takes to close out the final few things we’ve been working through over the past six or so months."
The $2billion-plus development will see about 4ha of the 10ha site — a former camping ground near the Skyline gondola — transformed into five residential tower blocks, hotels, retail and hospo space, and public spaces.
The first stage will consist of 224 apartments, spread over three buildings ranging from nine to 12 levels.
The council signed a developer agreement with 94 Feet and Auckland-based property investment company Augusta Capital, now Centuria Capital, in 2019.
However, Centuria exited the project in June, with 94 Feet buying out the company’s 25% share.
Although the council still owns the land, the deal is based on a 2017 commercial valuation of the land of $42m.
The deal includes a profit-sharing clause in which the council will receive 50% of any profits above the original forecast — if the project only meets its initial financial targets, the council receives standard payments.
Council strategic projects manager Paul Speedy said Merricks Capital had a large investor base and "plenty of capital" to invest in the project.
In a post on his mayoral Facebook page this week, Glyn Lewers said Lakeview would be "one of the most significant projects Queenstown has ever seen".
The council had invested $66m to date, with a forecasted $6m more to fulfil its obligations.
Debate about whether the project should go ahead or not "does not achieve much", he said.
"Walking away ... without valid legal reasons would be more than risky, it would be expensive."
