The Vincent Community Board may come to the rescue of Alexandra, by freeing up a 6.5ha parcel of residential land, helping to aid a sections crisis in the town.
Next week, the Vincent Community Board will decide whether to offer residential-zoned land it owns north of the Molyneux Park netball courts for development.
A report to the board said the land could be developed into between 55 to 63 lots, depending on their size.
''Feedback from developers, real estate agents and builders is that there are no other residential developments of any significance planned to come to the market,'' the report, from Central Otago District Council staff said.
Last week, the Otago Daily Times reported on the housing industry's fears there were few residential sections left in Alexandra and unless more were offered it would cause a construction industry crash and stunt the growth of the town.
The recommendation to the board was that it approve the council entering a joint venture with developers in which it would gain 50% of the net profit with a minimum guarantee of $500,000.
This would allow the council to share in the profit without providing any capital development funding and allow it to have some influence on subdivision design.
The other options were selling the block to developers, or for the council to completely develop the land itself.
The council did not have an official valuation for the land, but its hypothetical subdivision analysis assessment estimated the block's value at between $2million and $2.7million and development costs were estimated at $3.4million.
The estimated profit on development was $2,630,000, based on 59 lots, an average lot sale price of $179,000 and a $55,000 development cost per lot.
If the joint venture proceeds, it would be on the same terms as a similar project the council was involved in, the 63-lot residential subdivision on Gair Ave in Cromwell.
The Alexandra lots would potentially be available for purchase early 2018.
