New housing could pop up in the Forbury area if the Dunedin City Council goes ahead with its plan to buy the former Forbury School site.
Mayor Dave Cull said the school closed in December 2011 and, soon after, the Methodist Mission created a hub on the site which now services more than 600 families in South Dunedin.
The Methodist Mission told
the council it had concerns the school would eventually be sold and it would not be able to continue its service from the site, he said. It was one of several issues that caused the council to express an interest in the property, the mayor said.
''The DCC recognises the importance of their work in the community. We want to protect the services that the Methodist Mission provides.
''We also have Dunedin City Council housing next door. We recognise the potential for building more on the site. It is also an opportunity for urban renewal - buying the site might be the catalyst.''
The council owns housing in Kirkcaldy St, Melbourne St and Oxford St, all in close proximity to the former school.
As part of the disposal process, Ngai Tahu would get an option to buy the property, so the council had been in talks with Ngai Tahu about ''how they might realise each other's aspirations'', Mr Cull said.
''If we could agree on outcomes for the property, the DCC and Ngai Tahu may come to an agreement to contribute different resources to achieve agreed outcomes.''
Discussions were taking place with all parties, but Mr Cull could not say if or when a deal would be reached.
The school was merged with Macandrew Intermediate on the Macandrew Intermediate site last year to form Bathgate Park School - a year 1 to year 8 primary school.
