At a full council meeting yesterday, a last-minute item was added to the agenda to discuss the prospect of the council agreeing to set up a holdings company for Kaitangata Promotions to help reduce risk for the bank lending to potential buyers of the house package.
Council chief executive Steve Hill said the council would be unable to create a holdings company for the promotions group, as consultation would need to be undertaken with the public.
The land and house package offered affordable land and a house starting from $230,000.
Lawyer Alice Sanders spoke at the meeting and said some barriers had been identified which stalled the process of signing off the package.
She proposed, with support from Kaitangata Promotions public relations facilitator Evan Dick and Clutha Development chief executive Linda Moore, the council provide full financial support to build a ''turn key spec house'' on one of the sections available in Kaitangata.
Construction and installation of the house on a section was estimated to cost up to $235,000 (including a $13,000 contingency) if a council-owned section was used.
There are five council sections in Kaitangata which could be used for the package.
Having a spec house would help satisfy the banks' security issues, Ms Sanders said.
Banks were unwilling to deal with ''risk averse'' people and wanted more detailed information.
It was also difficult when there was no finished product.
Councillors discussed whether it should approve financial support ''in principle'' but wait until more information was presented by the promotions group.
Cr John Cochrane was concerned there was a risk there would be no parties willing to purchase the house once it was built. At present, there was no client interested in purchasing the house.
Cr Stew Cowie said it was clear there was still interest in the package.
He said it would be in the best interest for the council to show its support or risk the plan losing momentum.
The council agreed to financially support up to $235,000 for a house and land to be built in conjunction with the Kaitangata Promotions group, so long as it will be built on the council's own section.
Outside the meeting, the group said they were ''stoked'' at the decision.
