About 40 people learned details of the deal and the building’s history at a panel discussion held by the Southern Heritage Trust at the Dunedin Public Library last week.
The agreement is between the Takutai Trust and Southern Heritage Trust: Dunedin, following two years of negotiations.
Southern Heritage Trust chairwoman Jo Galer said Taieri MP Ingrid Leary had been instrumental in the process.
"She genuinely understands what this means to the community and that it’s vital to retain our landmarks and heritage," Ms Galer said.
The agreement would not have been possible without KiwiRail "astutely" recognising the building was important to the community, and the Takutai’s Trust’s "incredible generosity" enabling a renovation of the two-storey 1920s wooden structure.
The administration block represented the 1920s cultural heritage of the site, when a large extension was made to the workshops.
It was used as recently as 2019 to host meetings of the Rail and Maritime Transport Union.
Dunedin-based project architect Gary Todd said "adaptive reuse of this significant existing building stock is key to telling the full story with the community."
The project is scheduled to begin this year, and will include two separate 299sq m rental spaces, available from 2026.
Mr Todd donated his time to come up with concept drawings for the 400sq m of space, including carparks, creating an opportunity for community group tenants to take advantage of competitive rent.
Ms Galer said KiwiRail deserved credit after initially not seeing a place for the building in its new South Dunedin development.
"But [they] listened to our concerns that we wanted an important piece of the Hillside workshops we all knew and loved retained on behalf of the South Dunedin community, and then negotiated with us in good faith," she said.
The Southern Heritage Trust has secured the building for $1 and the development will involve a display space on the ground floor that will remember the workers, their families and the great age of rail that characterised Hillside.
"This is a fantastic outcome driven by a ‘coalition of the willing’, which also included businessman Justin Stott, Downie Stewart lawyer Paul Hubbard, engineer Stephen Macknight, trust member Brent Patterson and Dunedin councillor Sophie Barker," Ms Galer said.
It is hoped the development will be the first step towards a vision of positioning South Dunedin as the industrial heritage capital of New Zealand.
