An affordable housing subdivision is one option for developing pine-plantation land along Dunstan Rd, on the outskirts of Alexandra.
In response to two separate approaches from people interested in buying up to 12ha of the Central Otago District Council-owned land, the Vincent Community Board has decided to set up a working party to consider development options.
The endowment land is along Dunstan Rd, between the netball courts and golf course, through to the western boundary of Molyneux Estate. It was vested in the Alexandra Borough Council in 1879, to be used for "municipal purposes".
The matter was discussed in private at the board's March meeting, when it considered a report from council property officer Brian Taylor about recent interest in the land.
In a statement released last week, chairwoman Clair Higginson said the board resolved not to sell the land as an undeveloped block, because there were no specific development proposals to consider.
However, a working party would be set up to explore options for development, including the benefits of some form of joint-venture equity partnership in the subdivision of the land.
Developers would also be invited to submit "innovative" residential development proposals for the board to consider.
These could include "a development that is attractive to and reflective of the community at large; something that looks to the future with eco-friendly design elements, and one that offers affordable housing opportunities".
In his report, Mr Taylor said 6ha of the wider 17ha block was forest. The rest contained mostly self-sown wilding pines.
The forest block was more recreational benefit to the community than possessing any real commercial value, he said.
In May last year the council's boards considered the implications of the emissions trading scheme on its blocks of forest. At that time, the Vincent board was facing a potential bill of $500,000 under the scheme if it cleared its block of forest, on the outskirts of Alexandra, and did not replant.
Mr Taylor said the international price of carbon credits had dropped since then, and the present liability to the council was about a third of the figure it was in May.
However, the effect of the liability for deforestation was "relatively modest" when charged against higher value residential land, he said.
For example, a penalty cost to the council through the scheme of $25,000 per hectare of forest felled, spread over a 10 lot per ha subdivision, meant the additional cost of development would be $2500 per section.
That figure could be absorbed in the overall development costs or recovered in the sale.
Ms Higginson said careful consideration was needed to maximise the potential of the endowment land.
"As a board we need to make sure the process is fair, accessible and transparent, rather than just aligning ourselves with one or other of the first proposals to come along."
