At a meeting yesterday, the Vincent Community Board agreed to release a 6.5ha parcel of residential land north of the Molyneux Park netball courts for development.
The board decided to enter a joint partnership with a developer from which it would gain 50% of the net profit with a minimum guarantee of $500,000.
It was expected the land would be divided into 55 to 63 lots, depending on their size.
Board member Russell Garbutt said there seemed to be demand for smaller, more affordable units.
''If we go into a joint development are we able to influence the type of housing that will go into the block?''
Central Otago District Council property and facilities manager Mike Kerr said the venture concerned land, rather than building development, so the council could influence section sizes, which in turn would influence building sizes.
''Interestingly enough, there have been very few sections available of the size we're doing, even in Cromwell.''
This was preferable to larger sections, which would encourage speculators subdividing the land themselves, he said.
The council did not have an official valuation for the land, but its hypothetical subdivision analysis assessment estimated the block's value at between $2 million and $2.7 million, and development costs were estimated at $3.4million.
The council is involved in a similar venture with a 63-lot residential subdivision on Gair Ave in Cromwell.
The Alexandra lots would potentially be available for purchase by early 2018.
The decision will now need to be ratified by the council.
