The Queenstown Lakes District Council is looking to dispose of a piece of prime land it owns near the resort's CBD after it failed to attract enough financial support for a convention centre.
In a report to this week's full council meeting, strategic projects manager Paul Speedy recommended the council agree to a ''transaction approach'' to look at finding someone to work with on developing the 4.4ha of commercial land, formerly the Lakeview Holiday Park.
Mr Speedy's report said the subject area was less than half the wider Lakeview site, which was about 10.4ha.
The balance of the land would be retained under council ownership and/or administration for recreation purposes and ''strategic infrastructure corridors''.
The council resolved in August 2015 not to progress with engagement and negotiations for the commercial land until there was sufficient certainty about the Queenstown Convention Centre proposal.
At the end of September that year, leases for 77 privately-owned cabins on the site expired.
The land could be used for public and commercial space, housing and visitor accommodation, a market square and Ngai Tahu's proposed hot pool development.
Mr Speedy's report said elected members were presented with an indicative business case last November which gave options for progressing the development opportunity.
That showed investment of close to $450million (public and private) on the site could have an expected district economic impact of $83.5million from one-off construction related activity, and additional ongoing economic benefits from operations of more than $54.5million annually.
''The net financial return to the council was projected to be $25.5million.
''This is in comparison to a 'status quo' or 'do nothing' net financial return of $5.2million.
''Given that the council has not received sufficient financial commitments to date from funding sources to construct the QCC [Queenstown Convention Centre], the opportunity cost of 'doing nothing' or further delay in development of the Lakeview site could have a material impact on potential financial and non-financial outcomes for the council.''
Mr Speedy said the commercial land at Lakeview was ''underperforming'' at present and was attractive to interested investment partners, so selling it was a significant opportunity for the council.
While the preferred option may not provide the highest financial return to ratepayers, it would provide market certainty while mitigating the risk of not achieving best value for the community.
The report proposed more community consultation on tenure ''before declaring the property surplus and deciding to dispose of the commercial land at Lakeview''.
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Comments
While it wouldn't be as close to the cafes and their big business mates as the preferred Stanley St site. Why does the QLDC not instead use the Lake view site for the New Council and Community Buildings, plenty of parking and room for expansion. Also I suspect it would enable a much more cost effective build.
This would release the Stanley St for a Car parking retail mix,which might just bring some of the locals back into the CBD, which I presumed the purpose of the CBD Master Plan was all about?