The Waitaki District Council could get $615,000 if it sells land it owns in Oamaru on ''Hospital Hill'' to its own company, Waitaki District Health Services Ltd, for a retirement village.
Earlier this month, the company, which provides health services in the Waitaki district and operates Oamaru Hospital, announced plans for a retirement village, with stage 1 cost-ing up to $15 million.
Today, the council will consider issues relating to the project, including a land purchase option to Waitaki District Health Services Trust for 7.9578ha on Hospital Hill for the ''Observatory Village''.
A report to the council meetings recommends terms of a purchase price of $615,000 (excluding GST, if any), an option for 12 months and a provision the land be used only for the retirement village.
The purchase could go ahead only if the council made a favourable decision following special consultation with the public on the project and the establishment of two new council-owned companies.
Corporate services group manager Carolyn Carter said the trust, part of the health services group wholly owned by the council, had identified the site for the village and request-ed an option to buy.
The council had already identified Hospital Hill as an area for potential residential development.
The first step had been the council buying 6.18ha in 2002 and the second the almost 8ha in 2009 which was now proposed for the retirement village.
Planning for development had included protection of the public skyline walkway network which went through the area. Crown-owned reserve land would remain available to the public.
The price of the land for the village had been set by an independent valuation just over a year ago, but was being updated. The council would have about 5.1ha of land left suitable for development, although the trust had indicated an interest in this if the retirement village was as successful as expected and the need grew as anticipated, she said.
The village is to meet a growing demand from an ageing population in North Otago for integrated retirement care from independent living to hospital beds. The proportion of the district's population aged 65 years or over is expected to increase from 23% - about twice the national average - to 73% in the next 20 years.
The first stage would be 21 villas of up to three bedrooms, 12 apartments, 40 rest-home care beds in individual en suite rooms and a community centre with library, chapel, technology, media and music rooms, fitness suite, gymnasium, hair salon and provision for indoor bowls.
Further stages, depending on demand, include up to 21 villas, 12 apartments and 40 hospital-care beds.
Profits from the village would be used to provide extra health services for the district.
